Big Hope 1 takes off

Big Hope 1 will be seen on the Ohio, Mississippi, and even the Illinois Rivers.  You’ll know it when you see it – it’s bright pink.  This past Monday it took on its inaugural load of grain at the CGB (Consolidated Grain and Barge) facility in Madison, Indiana. 

Dan Heffelmire, president of H & B Specialties says a portion of the barges proceeds will support cancer research.  “It’s an opportunity to promote a program with our growers to participate,” he says.  “In doing that – we will deduct money directly out of their settlement check and donate it to the Mary Crowley Cancer Research Center on their behalf.”

 He tells Brownfield their growers are excited about the program.  “The feedback has been phenomenal,” he says.  “It’s amazing.”  Heffelmire says he was amazed to see so many people come forward and make pledges and donations after they heard about Big Hope 1.

Dan McNiel, regional manager with CGB says it was an easy decision for them to make to participate.  “Many of our employees have been affected either directly or through family by cancer,” he says.  “We wanted to take this opportunity to donate $15,000 to the “Big Hope” cause.”

To learn more click HERE.

Good finish for the week in dairy

A solid finish to a good week for dairy markets. Cash cheese barrels held steady on Friday at $1.47 per pound but blocks gained 6.75 cents on an unfilled bid. Class III futures responded accordingly with June up 23 cents, July added 37 cents and August increased 25 cents. The average cash cheese price for barrels gained a penny, blocks increased 1.45 cents and butter added 3.45 cents per pound.

Looks like more retailers are starting to feature butter as the barbeque season gets underway; the lower prices are helping as well. Milk production is starting to back-off across most of the country as we pass seasonal peaks and heat and humidity start to factor-in. Dairy Market News says Class I and II plants will be closed over the long weekend putting a little more milk into the cheese plants but they can handle it.

Dairy cow slaughter in April totaled 240,000 head, 2,000 more than April of 2011. January through April saw 1.043 million dairy cows slaughtered under federal inspection, 24,000 head more than in the same four-month period a year ago.

Milk production is also past-peak in western Europe although production has been running above year-ago levels. Eastern Europe is still building toward peaks. Meanwhile milk handers in New Zealand and Australia say production is tailing-off noticeably as they approach the May 31st end of their production year. Projections are New Zealand milk production will be 9 to 10 percent higher for the year while Australian production will end up about 4 percent higher than the previous year.

Former inspector says organic study lacking

A former organic inspector and producer says a recent study about the ability of organic food production versus conventional production to feed the world doesn’t go far enough.

The McGill University and University of Minnesota analysis of more than 65 studies that determined organics would be able to produce an average 25% less than conventional – Mischa Popov says, is more like 50 to 75% less. Popov tells Brownfield there are some major factors that need to be considered, among them, pest control.

“Organic farms are spread out all over the continent,” Popov tells Brownfield Ag News, “So, if you’re an organic farmer in the middle of a sea of conventional farmers, you’re benefitting from all the pest control they’re doing.” Conversely, he says, if there were wall to wall organic farmers, pest control would be nearly impossible.

The biggest unknown in organic production, he says, is the existence of fraud among some organic producers. Popov is not shy about using the word, “cheating.”

“It’s sad to say,” he says, “But there’s NO testing being done. It’s all just paperwork, record-keeping—you can call it a glorified honor system and it’s pretty rigorous but only on paper.”

Popov says the comparison between organic and conventional agriculture feeding the world isn’t valid. While each has its place, he says, there is no comparison. He says, “That’s what regular, conventional agriculture is all about. It’s about feeding the masses. Organic is about high, high quality.”

Popov is the author of the book, ‘Is It Organic?’

Dust may reduce herbicide impact

Dry soil can lead to dust when applying post emergent herbicides and can cause problems for growers.

Aaron Hager, extension weed scientist with the University of Illinois, says the large equipment used by commercial applicators kicks up a lot of dust in dry soil, which combines with the herbicide.

“Sometimes we get concerned with the amount of dust that is generated,” Hager tells Brownfield, “Because what can happen with some post-emergence herbicides that come in contact with the dust may actually reduce the weed control efficacy from that application itself.”

Hager says North Dakota State University researchers several years ago found that foliar-applied herbicides, including glyphosate, were reduced when dust was deposited on leaves before or within 15 minutes after application. He said the effect was a bit worse with dust from silty clay soil than from loamy sandy soils.

Hager says there’s not much growers can do, “For remedies, unfortunately, you know a good nice soaking rain would be one of the few remedies that actually would provide some relief.” Illinois and some other states in the Corn Belt are very dry with summer-like temperatures and there’s little rain in the forecast.

Hager says it’s a good idea to go out and scout those fields that were treated with post-emergence herbicides during very dusty conditions to see what level of weed control was achieved.

Grains, oilseeds mostly higher

Soybeans were higher on technical and commercial buying. China’s Ministry of Commerce expects big soybean imports over the near term and while Beijing does plan to auction off 600,217 tons of domestic soybeans in the coming week, actual sales have been well below the offerings. In any event, when trade resumes Monday night, the pit will respond to the weekend weather. Soybean meal was mixed in consolidation trade and soybean oil was up on the higher beans and crude oil. Taiwan’s Breakfast Soybean Procurement Association picked up 115,000 tons of soybeans from Brazil.

Corn was steady to higher as traders squared up ahead of the holiday weekend. There’s scattered rain in the near term forecasts but the 7 to 10 day outlook is a little more promising. Past that – the outside markets were mixed and there was no real fresh news ahead of Memorial Day. Dow Jones Newswires states the corn cash basis was down Friday on slowing export demand and the lower Argentine cash basis. Ethanol futures were higher. According to the International Grain Exchange, Ukraine could become the second largest exporter of corn during the 2012/13 crop on a tighter U.S. supply, smaller Argentina production, and increased demand from China. Vietnam bought 40,000 tons of corn from India.

The wheat complex was higher on short covering and commercial buying. Wheat was also watching the weather with at least some rain in the forecast for the Black Sea region. Chicago and Kansas City are continuing to monitor harvest activity as it goes widespread, along with weather and yield figures, and Minneapolis has an eye on spring crop development, in addition to weather conditions in the Northern Plains. European wheat was higher on dry weather concerns.

Meat groups to join, speak with one voice

Two leading meat industry trade groups are consolidating to speak with a stronger voice on food safety and other industry issues. The National Meat Association (NMA) and the North American Meat Processors (NAMP) Association are planning to officially become one on July first forming the new North American Meat Association (NAMA).

NMA Director of Communications and Governmental Relations, Jeremy Russell, tells Brownfield Ag News the combined membership will help the groups address consumer issues such as the recent flap over lean finely textured beef (LFTB).

“One of the reasons that this consolidation is really important is that more and more media influence can impact our businesses across the board. The whole industry was impacted by that and so it helps us to speak with one unified voice.”

Russell says they all agree – especially on this issue – that LFTB is a perfectly safe product that is a benefit to consumers.

NMA membership is in the western U.S. while NAMP membership is primarily in the Midwest and Northeast U.S. and in Canada and Mexico. Russell says the groups are complementary in geography and their missions.

“Our strength, really, as an association, is in regulatory assistance to our members,” says Russell, “And, I know that the North American Meat Processors Association’s strength is their education programs. They also publish the meat buyers guide.”

Russell says it’s an exciting time forming this new organization.  The North American Meat Association will have 700 member companies, 400 of which are meat processors. The consolidation will give them membership in 80 percent of U.S. congressional districts at a critical time in the industry. 

AUDIO: Jeremy Russell (5:00 mp3)

NMA – Beef is Beef

Help stop the Emerald Ash Borer

 

USDA photo

As the summer camping season gets underway comes an increased threat of spreading Emerald Ash Borer. The beetle was first found in the U.S. in Michigan in 2002, since that time it has spread to 14 other states from Missouri to Virginia. Sharon Lucik with USDA says while the insect is a good flier, “when humans move firewood they are moving firewood long distances and that really contributes to the wide spread in the past.”

The most common scenario is someone has an ash tree die, they cut it down and make it into firewood then they haul that firewood or give it to someone else to haul to some campsite or cabin in another area. “If they don’t know that ash tree was infested, they could be spreading the beetle to a new area that wasn’t infected.” A prime example is in Wisconsin where there are two infestations, one on the east side of the state along Lake Michigan while the other is across the state along the Mississippi River.

Currently EAB has been found in Michigan, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Missouri, New York, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and the Canadian provinces of Ontario and Quebec. Ash trees are found throughout North America, Lucik says “The risk is monumental; we could lose that species of tree.”

While they are surveying for the insect across the country and working to develop a way to fight the invasive pest the best way to control it for now is “don’t move firewood. “Wait until you get to your destination and buy firewood there.”

More information is available here:

AUDIO: Lucik talks about EAB 7:48 mp3

Livestock futures quiet ahead of the holiday

Compared to the previous week slaughter cattle traded 2.00 lower on a live basis from 121.00 to 122.00, and dressed sales were 1.00 lower at 194.00 with a few at 195.00.Slaughter rates remain fairly strong though still less than a year ago, however slaughter weights are well above last year. Buyers and sellers will be very eager to learn of Memorial Day meat clearance when trade resumes on Tuesday.  Cattle slaughter for the week at 636,000 head is 5,000 under the previous week and 38,000 less than 2011.

Boxed beef cutout values were lower on light to moderate demand and moderate offerings. Choice boxed beef was down .93 at 194.63, and select was 1.38 lower at 185.36.

Chicago Mercantile Exchange live cattle contracts settled 25 to 70 points lower on Friday. Although the market started out on an aggressive note, most of the support eroded by midday. Most traders seemed to have backed out of the market as they head home for the long holiday weekend. June settled .22 lower at 117.65, and August was .70 lower at 119.10.

Feeder cattle ended the session 30 to 62 points in the red and were stuck in a very lightly traded market with most traders’ content to hold positions well into to next week. Overall trade volume remained quiet. August settled .35 lower at 158.50 and September was down .62 at 159.47.

[Read more...]

Closing Grain and Livestock Futures: May 25, 2012

Jul. corn closed at $5.78 and 1/2, unchanged
Jul. soybeans closed at $13.82, up 6 cents
Jul. soybean meal closed at $409.30, down $1.50
Jul. soybean oil closed at 50.12, up 70 points
Jul. wheat closed at $6.80, up 17 cents
Jun. live cattle closed at $117.60, down 22 cents
Jun. lean hogs closed at $85.20, up $1.00
Jul. crude oil closed at $90.86, up 20 cents
Jul. cotton closed at 76.32, down 32 points
Jun. Class III milk closed at $15.80, up 23 cents
Jun. gold closed at $1,568.90, up $11.40
Dow Jones Industrial Average: 12,454.83, down 74.92 points

It’s a form of Herbal Art

Soybeans can be used in a variety of different products.  Brian Paffen, owner of Herbal Art, a Fishers, Ind. based company, has found a very aromatic use for Indiana grown, organic soybeans.  “Soy is cleaner burning compared to a paraffin based candle,” he says.  “It’s virtually sootless and it is also chemical free.”

Paffen doesn’t just make candles; he makes a variety of products using herbs and other natural products.  It all started with what he calls a “hobby” and has grown into everything else.  “We have a variety of 100 percent natural soaps, soy candles, and skin care,” he says.  “We also have a variety of pet, garden, and salon products that are all natural based.”  Paffen has developed a full line of health care products for the skin and the body using a wide array of herbs and other natural products.

Paffen says moving forward he wants to continue to incorporate the use of agricultural goods into his product line.