Tuesday Midday cash livestock markets

It is typically quiet in cattle country on Tuesday. Bids and asking prices are not fully developed. However, a few showlists have been priced around 168.00 to 170.00 in the South, and 265.00 to 270.00 in the North. Significant trade volume will probably be delayed until the second half of the week.

Boxed beef cutout values are significantly higher in the morning report. Choice beef is up 2.60 at 261.90, and select is 2.77 higher at 258.94.

The beef carcass value continues to move impressively higher thanks to the bullish combination of reduced midsummer tonnage and solid demand. Both choice and select cut-outs set new all-time highs on Monday with box demand described as moderate.

Feeder cattle receipts at the Sioux Falls Regional Livestock at Worthing, South Dakota totaled 1722 head on Wednesday. Compared to two weeks ago. Feeder steers were 10.00 to 15.00 higher. Heifers were too lightly tested in recent weeks to make a good comparison. There was very good demand for all weights of feeder cattle. Buyers were eager bidders after last week’s sharp run-up in the cash fed market and the subsequent rise in live and feeder cattle futures. Feeder steers averaging 733 pounds traded at 239.32 per hundredweight. 595 pound heifers brought 243.00.

Barrows and gilts in the Iowa/Minnesota direct trade opened 1.23 lower at 121.15 weighted average on a carcass basis, the West is down 1.04 at 121.14, and Eastern hogs are .40 lower at 120.74. Missouri direct base carcass meat price is steady to 1.00 lower from 115.00 to 118.00. Barrows and gilts at Midwest markets are steady to 2.00 lower from 86.00 to 95.00 on a live basis.

The pork carcass cutout value is 2.52 higher at 133.46 FOB plant. Bellies, ribs, hams and loins had substantial gains.

While the bullish threat tied to PED has lost much of its sting this summer, it’s still quite possible that the spring pig crop was significantly cut in size, less than the winter pig crop, but still substantial by this devastating disease.

California drought affecting Pacific NW organic dairy

Even though the California drought does not stretch up into Oregon and Washington it is having an impact on organic dairy producers in the Pacific Northwest.  Washington and Oregon do not raise quite enough organic hay to meet demand, organic dairy producers are finding they have to bid against California organic dairy farmers for the hay.  Dairy Market News reports organic hay is getting up to $350 a ton, organic feed corn is near $750 per ton.

As a result, Washington and Oregaon producers are finding that like California producers, the price they get for organic milk is just not enough to cover those feed prices.  DMN says there are currently about 40 organic dairy producers in Washington, 1 recently converted to conventional, another is planning to sell-out and 2 more say they will be out of organic production by fall.  Adding to the temptation, organic cows going to slaughter are bringing up to $1.96 a pound not to mention what conventional herds will pay for milking cows.  There are indications larger organic dairies in Texas and other parts of the south are looking to expand to pick-up the slack.

Emmi Roth to expand New York yogurt capacity

Another expansion of the yogurt business in New York State.  Emmi Roth USA will expand operations in Orangeburg and Penn Yan, New York, to grow its market share in the U.S.  The Penn Yan facility produces Siggi’s yogurt as well as bag-in-box milk and creamers for foodservice dispensers.  Cheese Market News says the $11.6 million, multi-year investment will result in 50 new positions.  The State of New York is providing up to $400,000 in performance-based tax credits which are tied directly to job creation and investment commitments.

Subcommittee hears pros, cons of SNAP

The House Agriculture Subcommittee on Department Operations, Oversight, and Nutrition held a hearing addressing the effectiveness of the Supplemental Nutrition Assistance Program (SNAP).

Among those delivering testimony, Robert Doar, a Morgridge Fellow in Poverty Studies at the American Enterprise Institute testified that SNAP doesn’t do enough to lift people from poverty.

“I have been a strong supporter of providing aid to people in need, but I also want them to escape poverty,” Doar testified to subcommittee members.  “Assistance programs that do not lead people into employment, but instead finance non-work, will have one sure outcome, they will keep people poor.”

On the other hand, Stacy Dean, a food assistance policy specialist, testified to SNAP’s effectiveness.

“SNAP is a powerful anti-poverty program,” said Dean, during her testimony to the subcommittee.  “While benefits are modest, just $1.40 per person per meal, they do have a big impact.  SNAP lifted about nearly 5 million Americans above the poverty line in 2012, including 2.2 million children.”

It was pointed out in the hearing that in five years, participation in SNAP has grown from 28.2 million to 47.6 million recipients. 

Illinois company revamping Chinese operation

The CEO of Illinois-based OSI Group says he will not try to defend or explain the actions of his company’s meat plant in Shanghai.  In a statement on the company website, Sheldon Lavin states “what happened at Husi Shanghai is completely unacceptable” and he promised they will take all the steps needed; “to make sure it never happens again.”

A television documentary showed employees at the Husi Foods plant mixing expired meat with fresh meat and then forging production dates.  Chinese authorities say they found beef patties originally produced in May 2013 were mixed and sold as produced in January 2014. Xinhua news reports there were 4,396 batches with forged dates, of which 3,030 had been sold.

Two of the plant’s major customers; McDonalds and Yum Brands stopped doing business with the plant.  OSI suspended all operations at the Shanghai facility and withdrew all meat products originating at the Husi plant on Saturday.

Speaking at a press conference in Shanghai on Monday; David McDonald, president and chief operation officer at OSI Industries said the company would make “sweeping changes” to its China operations, including senior personnel changes.  OSI operates eight plants in China and one in Hong Kong.

Started in Chicago in 1908, OSI now has over 50 manufacturing facilities in Asia, Europe and the Americas with annual sales of nearly $6 billion.

 

Read Sheldon Lavin’s statement here:

Brownfield states crop progress report

Weekly Crop Progress Reports from the National Ag Statistics Service as of Sunday, July 27:

Illinois corn crop is 94 percent silked, up 12 points for the week and 9 points ahead of the five year average.  25 percent is in dough, should be 29 percent by now.  Soybeans 83 percent blooming up 14 points from last week and 11 points ahead of the five year average.  44 percent are setting pods, 14 points ahead of the five year average.

 

Indiana corn crop is 88 percent silked, up 19 points from a week ago and 9 points ahead of the five year average.  13 percent is in dough, a point ahead of the five year average for this date.  Soybeans are 84 percent blooming up 14 points on the week and 15 points ahead of the five year average.  51 percent are setting pods, 22 points ahead of the five year average.

 

Iowa corn crop is 85 percent silked, a 26-point increase for the week and 11 points ahead of the five year average.  14 percent is in dough, double the 7 percent five year average.  Soybeans are 82 percent blooming, 2 points ahead of the five year average and a 15-point improvement over last week.  41 percent are setting pods, 4 points ahead of normal for this date.  44 percent of the Iowa oats are combined, 15 points behind average.

 

Minnesota corn crop is 61 percent silked, up 38 points from a week ago but still 10 points behind the five year average.  4 percent is in dough compared to 2 percent normally by now.  Soybeans are 74 percent blooming, up 27 points from a week ago and right-on pace with the five year average.  26 percent are setting pods, 1 point ahead of the five year average.  16 percent of the Minnesota oats crop is combined, 3 points behind average.

 

Missouri corn crop is 96 percent silked, up 5 points for the week and 10 points ahead of the five year average.  33 percent is in dough compared to 39 percent normally by this date.  Soybeans are 63 percent blooming up 15 points from a week ago and 10 points ahead of the five year average.  23 percent are setting pods, 8 points above average.  89 percent of Missouri’s cotton is squaring up 7 points from a week ago but 5 points behind the five year average.  48 percent is setting bolls, 8 percent behind where it should be for this date.  The crop is rated 59 percent good to excellent condition with 38 percent fair.

 

Nebraska corn crop is 85 percent silked up 23 points from a week ago and 2 points ahead of the five year average.  23 percent is in dough, 8 points ahead of the five year average.  Soybeans are 83 percent blooming up 10 points from last week and 4 points ahead of average for this date.  53 percent are setting pods, 23 points ahead of the five year average.

 

Ohio corn crop is 69 percent silked, up 18 points for the week but 5 points behind the five year average.  9 percent is in dough, should be 12 percent by now.  Soybeans are 71 percent blooming, up 20 points for the week but 1 point behind the five year average.  24 percent are setting pods, 2 points behind the five year average.  34 percent of the Ohio oats crop is combined, 16 points behind the five year average.

 

South Dakota corn crop is 70 percent silked, up 40 points from a week ago and 20 points ahead of the five year average.  4 percent in dough, 1 point behind the five year average.  Soybeans are 81 percent blooming, up 11 points from a week ago and 5 points ahead of the five year average.  35 percent are setting pods, 10 points above average.  21 percent of the South Dakota oats crop is combined, 8 points behind the norm for this date.

 

Wisconsin corn crop is 44 percent silked, a 22-point improvement from a week ago but still 11 points behind the five year average.  Nothing in dough stage as of yet, should be 4 percent by now.  Soybeans are 65 percent blooming, up 19 points from last week and 5 points ahead of the five year average.  25 percent are setting pods, 7 point ahead of average.  12 percent of the Badger State oats crop is combined compared to 23 percent normally done by now.

Wisconsin could use some rain

Cool and dry becoming the norm in Wisconsin.  The weekly Crop Progress Report from the National Ag Statistics Service, Wisconsin Field Office says temperatures were 3 degrees below to 2 degrees above normal last week while topsoil moisture fell sharply.  As of Sunday, topsoil moisture is 7 percent surplus, 70 percent adequate, 20 percent short and 3 percent very short.  A number of county reporters say crops look good but we could use some rain.

Wisconsin corn crop is 44 percent silked, a 22-point improvement from a week ago but still 11 points behind the five year average.  Nothing in dough stage as of yet, should be 4 percent by now.

Soybeans are 65 percent blooming, up 19 points from last week and 5 points ahead of the five year average.  25 percent are setting pods, 7 point ahead of average.

12 percent of the Badger State oats crop is combined compared to 23 percent normally done by now.  Second crop hay is 73 percent harvested and 4 percent of third crop is in.

Read the full NASS report here:

Missouri corn crop ‘looking great’

Missouri averaged about a quarter-inch of rain this past week. Topsoil moisture supply is 61 percent adequate to surplus, but about a third of the state is short on topsoil moisture.  Corn silking is about complete with a third of the crop in the dough stage.  The crop is 84 percent good to excellent.

Brian Gebhardt, who farms in Mid-Missouri near Salisbury, is pleased with the growing season.

“Everything looks great this year,” Gebhardt told Brownfield Ag News while standing at the edge of one his cornfields.  “We’ve had just minimal problems, a few herbicide carryover issues early on, but that seems to have corrected itself now.”

Two-thirds of Missouri’s soybeans are blooming and 23 percent are setting pods. The soybean crop is 76 percent good to excellent. Cotton squaring is 89 percent complete and half the crop is setting bolls. Missouri’s pastures are 51 percent good to excellent.

“The weather’s great,” said Gebhardt, who hosted the DEKALB/Asgrow agAcademy on his farm.  “We’re hoping for some rain shortly, but everything looks good.”

AUDIO: Brian Gebhardt (2 min. MP3)

Exports, weather concerns support soybeans

Soybeans were higher on fund and commercial buying. Demand continues to be strong, with China buying 420,000 tons of U.S. new crop, along with 66,000 tons of optional origin, and some areas of the Midwest do need rain as we head into August. USDA reports 76% of soybeans are blooming, compared to the five year average of 72%, with 38% at the pod setting stage, compared to 31% on average. 71% of soybeans are in good to excellent shape, down 2% on the week. Soybean meal and oil were higher, following the lead of beans. Safras & Mercado projects 2015 Brazilian soybean production at 94.5 million tons.

Corn was higher on fund and technical buying. Corn’s also watching the weather, and while the trade still expects a big crop, they would also like to see rainfall in parts of the region, which would help with development. USDA’s first survey-based production estimate is out in August. According to USDA, 78% of corn is silking, compared to on average, with 17% at the dough making stage, compared to 16% on average. 75% of corn is in good to excellent condition, down 1% from a week ago. Ethanol futures were higher.

The wheat complex was lower on fund and commercial selling. Chicago and Kansas City are watching the tail end of the winter wheat harvest and spring development conditions look good. For the U.S. winter crop, 83% is harvested, compared to 80% on average, while for spring wheat, 93% has headed, matching the five year average, and 70% is rated good to excellent, unchanged from last week. Nigeria bought 101,000 tons of 2014/15 U.S. wheat (61,000 tons hard red winter and 40,000 tons soft red winter). Globally, the trade’s keeping an eye on dry weather in Australia, along with potential production and trade disruptions in the Black Sea region. Turkey purchased 165,000 tons of milling wheat.

U.S. corn, soybean condition ratings decline

The national corn and soybean condition ratings both dipped slightly over the past week.

As of Sunday, USDA reports 75% of corn is in good to excellent condition, down 1% from the week before, but that is still well above this time last year. 78% of the crop is silking, compared to 67% a year ago and the five year average of 75%, while 17% is at the dough making stage, compared to 8% last year and 16% on average.

71% of soybeans are rated good to excellent, 2% less than a week ago, but 8% more than a year ago. 76% of soybeans are blooming, compared to 62% last year and 72% on average, with 38% at the pod setting stage, compared to 18% a year ago and 31% on average.

83% of the winter wheat crop is harvested, compared to 80% both last year and on average. 93% of spring wheat has headed, even with a year ago and the average pace, with 70% of the crop in good to excellent shape, unchanged, but with 1% moving from good up to excellent.

52% of U.S. pastures and rangelands are in good to excellent condition, down 1%.