Ag News for America
The executive vice president of Nebraska Cattlemen (NC) is leaving for his home state of Oklahoma.
Michael Kelsey will become the new executive vice president of the Oklahoma Cattlemen’s Association. He has been the top executive for Nebraska Cattlemen for the past eight and a half years.
NC president Dale Spencer says the search for new executive vice president will begin immediately.
USDA Mandatory reported cattle trading and demand was light in Kansas on Friday, with live sales .50 to 1.00 lower than last week at 125.00, a few at 125.50. Cattle traded on a limited basis in Nebraska and Iowa with a few cattle on a live basis trading from 125.00 to mostly 126.00. Dressed deals in Iowa and Nebraska from 200.00 to 202.00. The Texas Panhandle traded about 7,000 head on Thursday at 125.00, a 1.00 lower than last week.
Boxed beef cutout values were weak on select and firm on choice on light to moderate demand and offerings. Choice beef was up .74 at 209.51, and select was .40 lower at 192.31.
The weekly cattle kill at was at 652,000 head, 21,000 more than last week and 8,000 greater than last year. The last time the weekly slaughter total reached 652,000 head level, was August last year.
Live cattle contracts settled 30 to 117 points lower on the Chicago Mercantile Exchange on Friday. Despite the ability to keep June cattle futures contained to narrow losses on Friday, the overall tone of the market weakened further through the session. The strong support in the dollar index and stock markets added to commodity market liquidation. Boxed beef prices were steady to weaker at midday and provided no support to the futures market. June settled .50 lower at 119.40, and August was down 1.17 at 118.55.
Feeder cattle settled 112 to 175 lower. Traders posted moderate to sharp losses as weakness through the livestock markets drew additional trade into the complex. May settled 1.12 lower at 133.90, and August was down 1.75 at 143.37.
A multi-issue agriculture bill has been passed by Missouri lawmakers and sent to the governor for his signature, on this last day of the legislative session.
Among other provisions, the omnibus ag bill protects the right of children under 16 to work on family farms.
It makes the theft of Missouri livestock a Class B felony.
It allows for additional civil penalties to be imposed for violations of the Missouri Livestock disease control law.
It creates farmer market tax exemptions for producers with annual sales of less than 25-thousand dollars.
It expands the definition of eggs for inspection to include not only chicken but turkey, duck, goose and guinea eggs that are intended for human consumption.
It allows for the creation of University of Missouri Extension councils.
USDA’s monthly cattle on feed update came out fairly close to pre-report estimates, but placements were larger than anticipated, while marketings were a little slower than what analysts were projecting.
Placements during April 2013 totaled 1.750 million head, up 15% on the year, and exaggerated by the extremely low April 2012 placement figure. By size, placements on cattle and calves weighing less than 600 pounds were 375,000 head and placements for the 600 to 699 pound category were 270,000 head, while 700 to 799 pound placements were 455,000 head and placements on cattle 800 pounds and heavier were 650,000 head. Before the report, analysts, on average, expected placements to be up 12.1% from a year ago.
April marketings were 1.855 million head, a 2% year to year increase, compared to the pre-report projection for a 2.9% rise.
The total number of cattle on feed in the U.S. as of May 1 was 10.735 million head, down 3% from May 1, 2012, when analysts were anticipating a 3.7% decline.
Other disappearances during April were 69,000 head, 12% less than last year.
USDA’s next cattle on feed report is out June 21.
Cattle country is slow to start on Friday following light to moderate trade in Texas yesterday at 125.00 1.00 lower than the previous week. The rest of cattle country just saw a little scattered trade on Thursday. Significant trade volume could be delayed until after the release of the cattle on feed report is this afternoon. Asking prices are around 127.00 to 128.00 in the South and 205.00 in the North.
Boxed beef cutout values were near steady in the morning report with the choice up .18 at 208.95 and the select was .19 lower at 192.52.
Feeder cattle receipts at Missouri auctions this week totaled 32,692 head. Compared to last week, steer and heifer calves sold mostly steady although there were instances of 5.00 lower to 4.00 higher noted throughout the state. Yearling feeders sold mostly steady to 3.00 lower. Feeder steers, medium and large 1 averaging 525 pounds averaged 158.78 per hundredweight, and 713 pound steers brought 139.15. 524 pound heifers averaged 141.17, and 722 pound heifers brought 120.20 per hundredweight.
Barrows and gilts in the Iowa/Minnesota direct trade opened .97 higher at 91.20 on a carcass basis, the West was up 1.41 also at 91.20 and the East was down .33 at 90.31. Missouri direct base carcass meat price is steady from 85.00 to 86.00. Terminal hogs are 1.00 lower to 2.00 higher from 58.00 to 64.00 live.
The pork carcass cutout value FOB plant is down .11 at 92.61 in the morning report on a negotiated basis.
The pork carcass value remains on fire, surging sharply higher on Thursday with both the rib and belly primal exploding by more than $6.
The lamb checkoff assessment rate will be increasing from .005 to .007 cents per pound for producers and feeders and increasing from 30 cents to 42 cents per head for sheep and lamb purchased for slaughter. The assessment increase will generate about $700,000 in additional funds.
“For us to be effective and supporting all sectors of the industry to really build demand and to promote American lamb for the industry the board felt it was just really critical to have additional resources and revenue,” said Megan Wortman, Executive Director of the American Lamb Board (ALB).
The assessment rate increase will take effect on June 13.
Audio: Megan Wortman, Executive Director, American Lamb Board (4:10 mp3)
The Farm Bill passed Wednesday night by the House Ag Committee includes the “Protect Interstate Commerce Act”, which would bar states from imposing their own animal-welfare standards on eggs, meat and other ag products brought in from other states.
The amendment is aimed at preventing farmers in other states from having to comply with measures such as California’s Prop 2 initiative that requires farms to provide more space to hens, hogs and other livestock.
The amendment was introduced by Iowa Representative Steve King.
“I’m fine if California wants to say ‘if you’re going to bring an egg in here, it has to be egg-shaped—and if you want to bring some beef in here, it needs to be produced with the idea of the regulations of the USDA in mind’,” King said. “But I’m not fine if California—and it isn’t just California, it’s other states–it’s a patchwork quilt of these issues and we need to draw the line now while we still can.”
California Representative Jim Costa objected to the amendment.
“Congress does not have the authority to regulate interstate commerce in a way that strips states—I believe—of their sovereign state authority,” Costa said. “In effect, it’s a federal takeover of a long-standing state’s internal legislative authority.”
The president and CEO of the Humane Society of the United States, Wayne Pacelle, warns that the King amendment could essentially “nullify” California’s Prop 2 and all state and local laws designed to protect farm animals.
AUDIO: Excerpts from House Ag Comm debate on King amendment (14:38 MP3)
The cash cattle trade was quiet on Thursday afternoon following the development of light to moderate business in parts of Texas earlier in the day at 125.00, 1.00 lower than last week. It looks like significant trade volume will be delayed until sometime on Friday. Trading psychology seems to be torn between appreciating carcass value and struggling futures. Asking prices are around 127.00 to 128.00 in the South and 205.00 in the North. Bids are at 125.00 live and 198.00 to 200 dressed. The kill totaled 124,000 head, 5,000 greater than last week, but 4,000 smaller than a year ago.
Boxed beef cutout values were steady to firm on moderate demand and light offerings. Choice beef was up .82 at 208.71, and select was .04 higher at 192.71.
Chicago Mercantile Exchange live cattle contracts settled 5 to 20 points lower. The trade went absolutely nowhere on Thursday bouncing back and forth in a narrow but mixed trading range. Traders’ main focus was the development of potentially steady to lower cash values while wholesale beef prices found additional strength. June settled .10 lower at 119.90, and August was .12 lower at 119.72.
Feeder cattle ended the session 5 to 17 points lower on light pressure throughout the market. Traders had looked for additional support from the live futures as weakness in the corn market was unable to draw buyers to the table. All nearby and deferred futures were stuck in a narrow range. May was down .05 at 135.02, and August was down .17 at 145.12.
“This is probably the worst year for winterkill we have had in over 20 years.” That’s how University of Wisconsin Extension forage agronomist Dan Undersander describes the alfalfa crop not only in his state but across the upper Midwest. He says the southern edge of the damage area is in southern Wisconsin where 20 to 30 percent of the fields are showing damage up to 80 percent loss in Central Wisconsin. The area extends from Ontario to the Dakotas.
He says a combination of factors have contributed to the loss, a lot of the crop went dormant last fall without storing up nutrients and then the late spring was just too much to withstand. There is also a lot of evidence of winterkill especially in low spots in fields.
The situation has created a “worst-case” scenario for dairy farmers who are already running out of forage and facing a hay shortage across the upper Midwest. As a result, Undersander says farmers may need to try to salvage a stand they would usually replace. He says the best options at this point are:
Some have tried sorghum-sudan in this situation but Undersander says that requires hot weather and that is not the norm in the affected area. He suggests it be used only if no other seed is available.
AUDIO:Undersander talks about the situation 6:00 mp3
In response the UW Extension has established a website of multiple materials addressing all aspects of the situation. It is http://fyi.uwex.edu/drought2012/alfalfa-winterkill/
In a related matter:
The University of Wisconsin Extension Dairy Team is holding five producer meetings around the state to talk about feeding options. Consultants and industry professionals will talk about building rations with less alfalfa, availability, pricing and utilization of feed by-products and forage options from June to the first frost.
The sessions will be:
May 28th; 9 to 11:30 am, Bear Creek Town Hall, Bear Creek;
1:30 to 4 pm Chase Town Hall, Pulaski
May 29th: 9 to 11:30 am Millhome Supper Club, Kiel
1:30 to 4 pm Van Abel’s of Hollandtown, Kaukauna
May 30th: 9 to 11:30 am U.W. Extension Marathon County, Wausau
Cool, wet and record setting are the months of April and May in Missouri this year – far different from those two months last year.
University Extension ag climatologist Pat Guinan says several inches of snow in May has only happened a few times in the more than 100 years that records have been kept in Missouri.
He says March and April were the coolest since 1997 and all the rain in April “erased nearly all the drought in Missouri.” Far northwestern Missouri has had residual drought conditions but that may have been alleviated by rain over the last few weeks, he says.
Unprecedented were the high temperatures on May 3rd in Missouri, which never got beyond the 30s.
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