Friday 27th January 2012

A wide-range on weather during November across Illinois

November in Illinois was the sixth wettest November on record and the ninth warmest, according to the Illinois State Water Survey. In addition, the drought in central and western Illinois has ended due to the above average rainfall.

The statewide average precipitation amount for the month was 5.23 inches, 1.9 inches above average. Several sites in southern Illinois had over 9 inches of rain, including Cairo with 9.92 inches.

The statewide average temperature was 45.3 degrees, 3.6 degrees above average. The warmest temperature reported in November was 80 degrees at Winchester on November 2. The coldest temperature reported was 16 degrees on November 30 at Altona, Mt. Carroll, and Monmouth.

The snowiest spot in the state was in far southern Illinois. A total of 2.5 inches of snow fell by the morning of November 30 at Grand Chain Dam on the Ohio River. A few sites in northern Illinois reported an inch or less of snow.

U.S. beef exports reach pre-BSE levels

During 2011, exports have been a bright spot for livestock farmers. That’s according to Joe Glauber, Chief Economist at the USDA.

Exports of U.S. beef crossed a milestone in 2011, finally reaching levels that existed prior to the December 2003 discovery of BSE in Washington State, said Glauber.

“There’s been a long climb back and I think, particularly with some of the more recent trade developments with some of the Asian markets, hopefully that will increase over time,” said Glauber, in an interview provided by the USDA. “Pork has been very strong and broilers, it looks like, we’re projecting a bit of an increase as well.”

Although the beef export relationship is still not what it was with some countries prior to the BSE disruption, other countries are developing an appetite for U.S. beef. Beef exports grew 19 percent in 2010 and they’re anticipated to have grown another 25 percent in 2011, according to Randy Blach, executive vice president of trend-watcher CattleFax.

“Those are some huge increases that we’ve come through here in just a handful of years,” said Blach, in an interview with Brownfield.

“We expect that incomes in other parts of the world will continue to rise faster than where they are in the U.S. until we can get this recession behind us, and that tells us these exports trends are going to be very brisk here for a period of time,” said Blach

Eleven percent of U.S. beef production is exported, but for boilers it’s 18 percent and for pork, it’s over 20 percent.

Mosaic will curtail phosphate production for a while

The Mosaic Company says it will reduce finished phosphate production by up to 250,000 metric tons through next March. The Minnesota company says “the near term supply of phosphate barges on the Mississippi River has exceeded the near-term demand” resulting in spot prices “disconnected with underlying agricultural fundamentals.”

President and CEO Jim Prokopanko states this is a short-term situation and they expect an above-average season in North America and record setting global demand for both phosphate and potash in 2012.

Mosaic is one of the world’s largest producers and marketers of phosphate and potash crop nutrients.

Further details from Mosaic available here:

Wisconsin farmers need to use the right tax form

A reminder from the Wisconsin Department of Agriculture, Trade and Consumer Protection, if you have land zoned under Farmland Preservation make sure you use the proper tax forms when claiming income tax credits. DATCP says some farmers are not getting the full tax credit by using the wrong form. If you entered a farmland preservation agreement before July 1, 2009, you should use Schedule FC. If your land is located within a state certified farmland preservation zoning district or if you enrolled in a farmland preservation agreement after July 1, 2009 you should use Schedule FC-A.

If you are not sure if your land is zoned or covered by an agreement, your town or county zoning office would know. Your county land conservation office can tell if your land is under a farmland preservation agreement.

Kris Modaff, DATCP farmland preservation program, is also available to answer questions on farmland preservation at (608) 224-4633 or email kris.modaff@wisconsin.gov.

Grains and oilseeds take profits

Soybeans were lower on profit taking, technical selling, and spillover from the outside markets. The Dow was higher and crude was firm but the dollar was up and gold was sharply lower. Past that – the trade continues to watch weather in key growing areas of South America. Soybean meal and oil were lower on profit taking, following the lead of beans. Taiwan traders via Dow Jones Newswires say if soybean prices continue to rise, they’ll begin importing beans in containers instead of bulk shipments due to the slightly lower prices.

Corn was lower on technical selling, profit taking and outside market direction. Corn’s also keeping an eye on conditions in Argentina and Brazil, but some contracts have run into overhead resistance. There was no real fresh news and volume has been light ahead of markets being closed this coming Monday. Ethanol futures were lower. According to USDA’s ag attaché in Moscow, Russian corn exports for the current marketing year could hit 1 million tons with the total harvest around 6 million tons in clean weight. China’s National Grain and Oils Information Center reports January to November DDG imports were 1.5 million tons, down 48.6% from the same period in 2010 with the Ministry of Commerce currently engaged in an antidumping inquiry against U.S. exporters.

The wheat complex was lower on profit taking, technical selling, and outside market influence. There are concerns about South America’s wheat crop and Ukraine is also seeing dry conditions. In any event, the overall fundamentals are bearish, especially on the global supply side of the balance sheet. European wheat was higher on the lower Euro and worries about South America. USDA’s ag attaché in Moscow reports Russian grain exports from July to November 2011 were 15 million tons, 12.8 million of that wheat, with cumulative marketing year grain sales projected at 22.6 million tons, including 19 million tons of wheat.

Now aflatoxin found in Chinese peanut oil

The latest food contamination issue in China is getting bigger. Earlier this week it was announced that milk from a couple of dairy plants was being recalled due to excessive levels of aflatoxin. The contamination was blamed on mildew in the feed being fed to cows. Now cooking oil from three companies has also been found to contain excessive levels of aflatoxin. The Chinese news agency Xinhua says the contamination is in peanut oil, it is not known if any of the oil made it to consumers.

The Chinese government has made food safety a top priority in an effort to restore consumer confidence after a pork contamination issue earlier this year and the melamine scandal that rocked China’s dairy industry in 2008.

Missouri county adopts stricter CAFO rules

While states determine the number of livestock to be considered a “CAFO” (Confined Animal Feeding Operation), counties determine the rules those operations must abide by. Northeast Missouri’s Adair County has just adopted a stricter CAFO ordinance put in place by neighboring Livingston County. Adair County Commissioner Mark Thompson tells Brownfield there are several reasons they have strengthened their CAFO ordinance.

Thompson says, “One of the main reasons is we visited with commissioners in neighboring counties and it’s been a real headache for them. It’s caused some commissioners to not be reelected, to be quite frank about the entire thing.”

Thompson says they’re concerned about the negative effects of CAFOs on residential property owners, “I’ve been, for a long time, concerned about CAFOs coming into Adair County. I’ve been around CAFOs for about 30 years. I’m a farmer. I raise cattle.”

Thompson says his county would “be in a lot of trouble if it weren’t for agriculture,” because it’s a driving force there.

“We want to protect our clients, our constituents, here in Adair County, as far as we can and as legally as we can,” says Thompson, “But, on the other hand, we don’t want to stifle agricultural business in Adair County.”

Thompson says Livingston County is very progressive and hired a Kansas City lawyer to write their CAFO ordinance that Adair County has now emulated and adopted.

“The ordinance addresses air quality, human life quality, land value quality. And,” Thompson adds, “They’ve put together a very fair, what we consider a very fair ordinance that’s fair both to agriculture and also to residents in their count y or our county.”

Thompson says the large egg laying facility going into Adair County will be just under the CAFO limit and is not the reason for the stricter ordinance.  He says they just want to be prepared for the future, adding that CAFOs continue to cause troubles for residents in other northern Missouri counties.

A quiet day in livestock markets

The cash cattle market remained very quiet on Thursday with just a few token bids reported in Kansas and Texas at 119.00. Southern buyers purchased very few cattle last week and early week predictions had them buying cattle early in the week, that has not happened and trade looks to be put off until Friday. There is a great deal of separation between asking prices and bids. Live asking prices remain at 125.00 plus and 205.00 plus dressed. The kill totaled 129,000 head, 1,000 more than last week and 2,000 greater than 2010.

Boxed beef cutout values were higher on choice and steady on select on light to moderate demand and offerings. Choice boxed beef was up 1.20 at 194.68, and select was .18 higher at 179.44.

Chicago Mercantile Exchange live cattle contracts settled 20 to 80 points lower as traders waited for cash cattle news to surface. Action was very light with many players still on holiday. December was down .52 at 122.57, and February was .80 lower at 122.35.

Feeder cattle ended the session 15 to 55 points in the red. Nearby contracts were better supported earlier in the session by a pullback in corn prices. Volume was thin.  January feeders settled at 146.87 down .32, and March was .55 lower at 149.80.

[Read more...]

Closing Grain and Livestock Futures: December 29, 2011

Mar. corn closed at $6.38, down 4 and 1/2 cents
Jan. soybeans closed at $11.87 and 1/2, down 10 and 3/4 cents
Jan. soybean meal closed at $306.60, down $3.50
Jan. soybean oil closed at 51.14, down 64 points
Mar. wheat closed at $6.45 and 1/4, down 6 cents
Dec. live cattle closed at $122.57, down 52 cents
Feb. lean hogs closed at $83.97, down $1.57
Feb. crude oil closed at $99.65, up 29 cents
Mar. cotton closed at 91.63, up 95 points
Jan. Class III milk closed at $17.45, up 31 cents
Dow Jones Industrial Average: 12,287.04, up 135.63 points

The Law Must Protect Farmers and Ranchers

For a lot of years, farmers and ranchers attacked by animal rights and other activist thugs – whether through outright lies in the media, break-ins on farms or physical disruption of our conventions and meetings – simply reported the crimes to the local police and waited for nothing to happen. These kinds of attacks did not register strongly enough on law enforcement radar – local, state or federal – to garner much attention. Unless someone tried to burn down or blow up your farm, the feds couldn’t/didn’t lift a finger.

No one seemed to care about the physical and psychological protection of farmers and ranchers and their families as they did about protecting the right to fight for “happy” farm animals. No one seemed to care about the vital service farmers and ranchers provide, i.e. feeding people affordably and safely, as much as they cared about celebrities, naked activists, insensitive/insulting media-hogging campaigns, stalls, “free range” or the virtues of organic/natural/vegetarian/vegan foods.

When agriculture fought back through enactment of federal and state laws criminalizing the kind of assaults I’ve just described, we were immediately branded – and continue to be vilified – by these same thugs, as well as by legal dilettantes and cable TV talking heads, as opposing the First Amendment, muzzling free speech and figuratively shredding the Constitution to protect our dastardly ways.

The first foray into legal protection was the Animal Enterprise Protection Act (AEPA), an amendment to the federal criminal code that for the first time made it a crime to break into and destroy biomedical research labs, farms and other sites of legitimate animal use. This was in 1990, there was a more than an adequate record of attacks, but the predicate was animals must be present at the facility. In 2006, an amendment to this section of the federal criminal code was enacted – the Animal Enterprise Terrorism Act (AETA) – necessary to extend the same federal protection to a broader array of legitimate animal users, including those who represent animal use. The animals-on-premises predicate disappeared.

Both pieces of legislation were vetted through the American Civil Liberties Union (ACLU) prior to any congressional action. Why? Because no one in agriculture or biomedical research – the two groups most active in passing the legislation – wished to be accused of ignoring First Amendment, whistleblower or other federal protections set in or established under federal law. These protections, after all, apply to us as well.

Now we have state legislative attempts in Iowa, Minnesota and Florida – and the Florida legislature has reintroduced the bill, bless ‘em – to enact laws protecting farmers and ranchers from anti-farming activists gaining employment on a farm under false pretenses, videotaping private property without permission, and then disseminating that video tape – edited in any way they wish, portraying that farm or ranch in any way they wish – all because they believe their right to hawk their cause is more important than the farmer’s right to protect his/her property. This is electronic vigilantism – self-righteous folks taking the law into their own hands – action we deplore in other contexts, so why not here?

Granted, bad legislative drafting and a reach too far in restricting illegal behaviors make these attempts self serving. The courts strike down bad laws — not the case in the AEPA/AETA so far — but the fundamental premise is still valid. Why is it OK for an animal rightist to commit fraud, theft and slander/libel, all in the name of his/her definition of animal nirvana – or the lack of it? And why are farmers and ranchers denied the protections so articulately protected by the legal whizzes among us with access to the media?

In the mid-1990s, it was my idea to create a model state bill aimed at any activist with the price of a full-page ad in USA Today or the New York Times who intended to lie to consumers about food production to further the cause or raise money. I figured if a company is legally prohibited from falsely claiming in its advertising what a product can or can’t do, why shouldn’t consumers be afforded the same protection from lies and distortions in activist propaganda? In all, 13 states passed a version of this model bill, legislation that basically told the activists: “Say whatever you like, but be prepared to prove what you say if challenged in the courts.” These laws were dubbed “veggie libel” laws by the media, and some of you remember the failed Oprah Winfrey suit in Texas over burgers, but the point remains: Does the Constitution protect your right to malign my livelihood – and me by extension – and break the law because I don’t comport with your personal beliefs?

I’m no lawyer, but to me, the answer must be “no.”