In late 2010, Newsham Choice Genetics researchers announced the successful mapping of genes that enable pigs to minimize the devastating effects of disease. Newsham Choice Genetics CEO Dr. Mark Weaver calls the identification of genetic markers for PRRS tolerance a significant advance in the swine industry. But how does it impact producers? We discussed the research with Dr. Weaver at the recent Iowa Pork Congress.
CWT accepts 19 export bids in January
January 31, 2011 By 1 Comment
During the month of January, Cooperatives Working Together (CWT) accepted 19 requests for export assistance from Darigold, Foremost Farms, Dairy Farmers of America, and Land O’Lakes for a sales total of 2,019 metric tons (4.451 million pounds) of Cheddar, Gouda, and Monterey Jack cheese to customers in North Africa, the Middle East, Central America, and Asia. The product will be delivered January 2011 through May 2011.
The CWT Export Assistance program was reactivated in March 2010. In 2010, it assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 35,183 metric tons (77.6 million pounds) to 27 countries on four continents, and butter and anhydrous milkfat totaling 14,968 metric tons (33.0 million pounds) to nine countries on three continents. One-third of the cheese and half of the butterfat are scheduled to ship in the first six months of 2011.
Farm profitability improved in January
January 31, 2011 By 1 Comment
Preliminary All Farm Products Index of Prices Received by Farmers in January increased 7 percent from December. The Crop Index increased 11 percent while the Livestock Index held steady.
In the Crop Index, farmers were paid more for feed grains, food grains, oilseeds and hay. The January corn price was up 55 cents to average $5.37 per bushel, soybeans increased a dollar from December to average $12.60 per bushel, all-wheat was up 95 cents at $7.40 while the all hay price held steady at $112 per ton. Cotton increased 3 percent from December to 82.9 cents per pound.
In the Livestock Index, hogs gained $2.30 for the month to average $54.60 per hundredweight while beef were up $7.90 to average $106 per cwt in January. Poultry was down 8.4 percent with eggs dropping 25.9 cents per dozen, broilers down a penny to average 45 cents per pound and turkeys fell 12.1 cents to average 55.6 cents per pound.
The January dairy products index was 3.1 percent lower with the all milk price down 50 cents from the previous month at $16.20 per hundredweight. Fluid grade was down 40 cents and manufacturing grade was a dime lower than December.
The Preliminary Index of Prices Paid by Farmers for January was up 2.7 percent from December. Farmers paid more for feed grains, complete feeds, supplements, hay and forages, feeder cattle and cash rent.
Read the USDA Ag Prices Report here:
May Class III surpasses $18.00
January 31, 2011 By Leave a Comment
The dairy markets continued to move higher on Monday, cash cheese barrels gained 2 cents to $1.725 and blocks added 2 cents to $1.755. Once again the market was moved by unfilled bids. Cash cheese continues an effort to catch up with the powder market but no such luck so far. Dairy Market News says nonfat dry milk production has declined as condensed skim sales have increased so demand is often going unfilled. Cash nonfat dry milk Extra Grade increased 5 cents on Monday to $1.65 while Grade A increased a penny to $1.6675 per pound.
Class III futures jumped an average 34.5 cents for February through December contracts, May increased the 75-cent daily limit going over the $18.00 mark to close at $18.19.
Commercial disappearance of dairy products during the first 11 months of 2010 was 179.4 billion pounds, 2.9 percent above the same period in 2009. Disappearance of butter is up 5 percent, American cheese up 1.5 percent, other cheese up 4.9 percent, nonfat dry milk up 14.9 percent and fluid milk down 1.4 percent.
Dollar, demand support grains and oilseeds
January 31, 2011 By Leave a Comment
Soybeans were higher on technical and commercial buying, along with the lower dollar and higher crude oil. There’s some talk on the floor that recent production estimates for Argentina are too optimistic with forecasts calling for only mixed rainfall this week. For Brazil, Celeres reports harvest in Mato Grosso has been delayed by rainfall. The supply is tight and demand remains solid with export inspections larger than what’s needed weekly to meet USDA projections for the marketing year. Soybean meal and oil were higher on spillover from beans and demand implications of a smaller South American crop.
Corn was higher on technical and commercial buying, in addition to spillover from beans, wheat and the outsides. Corn’s also keeping an eye on the weather impact in key areas of Argentina with conditions expected to be dry in many areas this week. Near term fundamentals are a little bearish but the longer term outlooks are supportive. In any event, traders are continuing their efforts to both ration demand and buy 2011 U.S. acreage. Ethanol futures were higher.
The wheat complex was higher on commercial and technical buying, along with the lower dollar. Traders continue to watch world weather issues and their impact on the global supply. Another issue at the forefront for many traders is shipments to Egypt, the world’s biggest buyer of wheat – however, as of Monday afternoon, even with a few delays, ports are generally open. The trade will also be watching snow totals in the dry U.S. Plains. A lot like corn, the near term fundamentals are at least slightly bearish, but the longer term outlooks are bullish, especially from the demand side. European wheat was higher following the U.S. lead. Ukraine reports 100% of the expected planted winter crop area was sown. Jordan issued a tender for 100,000 tons of wheat.
NCBA questions dietary guidelines
January 31, 2011 By Leave a Comment
The National Cattlemen’s Beef Association is expressing concern over the new dietary guidelines released Monday by the USDA and Health and Human Services.
NCBA spokesman Richard Thorpe, a Texas cattleman and medical doctor, says that, by calling for moderate amounts of lean beef, the guidelines may confuse consumers. He says some may interpret that recommendation to mean that they are over-consuming red meat.
“Honestly, we are way under-utilizing beef today,” says Thorpe, “and for the USDA to come out and say that—or give the impression that maybe we’re eating too much beef—just doesn’t make sense.”
Thorpe says, on average, U.S. consumers eat one-point-seven ounces of beef daily. To stay healthy, he says they should eat five to seven ounces from the meat and beans group each day.
Another of Thorpe’s concerns was the message that Americans should consume more seafood and fish.
“They give the misconception that maybe you should only eat moderate amounts of beef—and then maybe you should increase fish in your diet as a potential replacement for beef,” he says. “There is absolutely no scientific evidence to support a shift away from having lean beef everyday on your dinner plate.”
Thorpe says the beef industry has always stressed the importance of a well-balanced, nutrient-dense diet.
Winter storm will affect markets early in the week
January 31, 2011 By 1 Comment
Total trade volume in the cattle last week was lower in all three major feeding states. The new show lists gathered on Monday show numbers are up in Texas, but lower in Nebraska and Kansas. Asking prices are around 108.00 plus in the South and 170.00 plus in the North. Severe winter weather may keep the cash trade at bay until the last half of the week. Monday’s cattle kill was estimated at 123,000 head, 3,000 less than last week, and down 1,000 from last year.
Boxed beef cutout values were generally steady on light demand and offerings on Monday afternoon. Choice boxed beef was up .22 at 173.07, and select ended .14 higher at 170.89.
Chicago Mercantile Exchange live cattle contracts settled 60 to 145 points higher. Tighter than expected supplies of cattle at least through the next year, and overall demand for beef remaining optimistic were the main features of Monday’s action. February settled 1.45 higher at 108.95, and April was up 1.27 at 114.05.
Feeder cattle contracts settled 107 to 102 points higher on aggressive buying action given the lower cattle inventory numbers in Friday’s report, and spillover support from the live pit. March ended 1.77 higher at 128.00, and April was up 1.80 at 129.07.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 9500 head. At midsession feeder steers were 2.00 to 4.00 lower, steers less than 700 lb steer calves were 5.00 to 10.00 lower. Feeder heifers were steady to 2.00 lower. Heifer calves trended 2.00 to 4.00 lower. Demand was light to moderate as a major winter storm is expected to hit the state overnight. Forecasts are calling for blizzard like conditions for much of the state on Tuesday. Early quality was just plain to average. Feeder steers medium and large 1 weighing 550 to 600 pounds brought `127.00 to 135.50. 500 to 575 lb heifers traded from 118.50 to 127.50.
Lean hogs ended the session 22 to 237 points higher with the exception of the far deferred contracts. Early support quickly developed in the lean pit following the strong rally through last week. Market hog numbers remain adequate, but are starting to show seasonal declines which may limit overall processing runs and also tighten supplies of pork on the market. This could keep buyers entering the market as they look for additional investment opportunities given the uncertainty of outside commodity markets. February was up 1.50 at 87.25, and April settled 2.37 higher at 94.00.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.38 higher at 80.63 on a carcass basis, the West was up 1.36 at 80.32, and the East was down 2.40 at 77.40. Missouri direct base carcass meat price closed steady to 1.00 higher from 69.00 to 71.00. Terminals were 1.00 to 3.00 higher from 52.00 to 56.00 on a live basis.
Pork trading was very slow, with light to moderate demand and mostly light offerings. Pork carcass cutout value was up .04 at 88.61.
Monday’s hog slaughter was estimated at 383,000 head, 37,000 less than last week and down 30,000 from last year. The cash hog trade may be disrupted by the major winter storm making its way through key production areas. Slaughter is expected to be affected by the storm at least through Wednesday.
Closing Grain and Livestock Futures: January 31, 2011
January 31, 2011 By Leave a Comment
March corn closed at $6.59 and 1/2, up 15 and 1/2 cents
March soybeans closed at $14.13, up 15 cents
March soybean meal closed at $380.30, up $3.30
March soybean oil closed at 57.88, up 61 points
March wheat closed at $8.40 and 3/4, up 15 cents
February live cattle closed at $108.95, up $1.45
February lean hogs closed at $87.25, up $1.50
February crude oil closed at $92.19, up $2.85
March cotton closed at 168.44, up 369 points
February Class III milk closed at $16.70, up 27 cents
Dow Jones Industrial Average: 11,891.93, up 68.23 points
NCBA has concerns with new dietary guidelines
January 31, 2011 By 1 Comment
A spokesman for the National Cattlemen’s Beef Association is expressing concern with the new dietary guidelines released Monday by USDA and Health and Human Services. Richard Thorpe, a cattleman and medical doctor from Winters, Texas presented NCBA’s reaction to the guidelines. “Although presumably unintentional, by calling for moderate amounts of lean beef, USDA may confuse some consumers who assume this means we are over-consuming red meat,” says Thorpe. “We agree with promoting fruit and vegetable consumption, but there is no reason to make it sound like meat is over-consumed when that is not at all true.” Thorpe shared more of his thoughts in an interview with Brownfield’s Ken Anderson.
Illinois Pork Expo moved to Feb 15 & 16
January 31, 2011 By 1 Comment
Due to the pending winter weather storm, the Illinois Pork Producers Association (IPPA) has RESCHEDULED the 2011 IL Pork Expo for February 15-16 at the Peoria Civic Center.
The IPPA Annual Meeting will be 10 a.m. and the Trade Show will open at noon on February 15th. The Awards Banquet will be that evening. Trade Show and seminars on February 16th.
All hotel room reservations will be cancelled and will have to be re-made by the individuals attending.
Please check the IPPA website – www.ilpork.com – for more details and further updates or call the IPPA office at (217) 529-3100
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