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Markets and Production
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Oklahoma's Latest Farm and Ranch News
Your Update from Ron Hays of RON
Bayer Makes the
Offer- Wants to Acquire Monsanto for $62 Billion
After several weeks of speculation that someone would
be officially bidding for Monsanto- the offer has arrived.
The German industrial giant Bayer revealed its $62
billion takeover bid for Monsanto on Monday as it seeks to
create a new titan in the world of farming. it appears that they have
beaten BASF to the punch with their offer.
Monsanto, based in St. Louis, is the world's biggest
manufacturer of genetically modified crop seeds. Bayer is
hoping to unite that business with its own pesticide operations,
forming a one-stop shop for farmers. The combined company, with $67
billion in sales, would produce an array of products including pain
medication, G.M.O. seeds and pesticides.
If it eventually happens- and that will be after a
huge amount of regulatory scrutiny- the initial offer is for $122 per
share- all cash. Shares of Monsanto have gone up- shares of Bayer on
the German stock exchanges- have gone down.
Bayer has launched a website dedicated to the deal-
which can be explored by clicking here.
On the website, Advancing Together, Bayer says this is
all about being at the cutting edge of advancing agriculture-
"This transaction would create a leading integrated agriculture
platform with a broad product portfolio. The combined business would
benefit from a combined R&D pipeline that would deliver valuable
and innovative solutions for farmers, with a focus on long-term investments
to help advance the next generation of farming."
One of many stories out on the web that you can read
on the proposal comes from the home town of what would be the North
American headquarters for new company- St Louis. The
Post Dispatch has a detailed article about what is being said may
be an uphill battle for Bayer to get this deal done- "The offer,
which values Monsanto's equity at about $53 billion, represents a 37
percent premium to the May 9 closing price. The payment would be
funded with a combination of debt and equity. Bayer doesn't envision
selling any assets to fund the purchase."
From CNN- they
have an op-ed that is calling the deal a nightmare for America-
Leah Douglas is the author and is clearly not a fan of modern ag
technology- and even less of a fan of further industry consolidation.
Her voice- and others- will be a significant part of the
conversation on this merger- as well as the ChemChina effort to buy
Syngenta and the Dow and Dupont Merger that are now in the
The current downturn in the farm economy has helped
drive these deals- but that's not the only reason for them- the
dollars needed for R&D and the resources required to navigate the
patchwork of regulations globally have pushed these big players to
consider getting even bigger.
Lots of react will be coming from folks across the
spectrum in farm country- we will be passing it along to you in the
days to come.
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best interests of its members and working with other groups to make
certain that the interests of rural Oklahoma are protected. Click here for their
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you to be a part of Farm Bureau.
National Corn and Soybean
Planting on Schedule With Five-Year Average, Local Wheat Looks Good
The latest U.S. Department of Agriculture crop
progress report has corn planting 86 percent complete nationally.
That's up 11 percent over last week and nearly right on par with the
five-year average of 85 percent. USDA reported 60 percent of the crop
has emerged in the top 18 states that plant 93 percent of the
nation's corn acres. Emergence was 9 points behind last year but 17
points higher than last week. Soybean planting has reached 56
percent. That's a gain of 20 points over last week and four points ahead
wheat and canola crops continue to look strong this year. In the
weekly crop progress report from USDA, the wheat crop condition rated
57 percent good and 9 percent excellent condition, 28 percent fair
and only 6 percent percent poor to very poor. This year's crop looks
to be in much better condition than last year's, with a 20 point
increase in the good category. Winter wheat headed reached 99 percent
complete, slightly above normal for this time of year. More than half
of the state's canola crop is rated good or excellent. Row crop
seeding is ahead of schedule with 38 percent planted. Seventy-five
percent of corn was seeded by Sunday, down 13 points from
Winter wheat harvest is underway in Texas, but wet conditions across
many areas have delayed cutting. Forty-seven percent of the wheat
crop is rated in good to excellent condition, with 41 percent of the
crop in fair condition and 13 percent in poor to very poor condition.
The wheat crop is 6 percent harvested, up 3 points from last year,
but down 4 points from the average. Corn planting gained only 1 point
with 79 percent of the crop planted and 65 percent emerged. Sorghum
was 72 percent planted, soybeans were 65 percent, cotton was 31
percent done and peanuts were 50 percent planted.
wheat crop rated 59 percent good to excellent, 33 percent fair and
only 8 percent poor to very poor condition. Winter wheat headed was
96 percent, near 92 last year, but ahead of the five-year average of
83. Corn planting was at 90 percent, ahead of 82 last year, but near
the 88 average. Sixty-one percent of the corn crop is emerged.
Soybean planting was at 21 percent complete, cotton planting was six
percent and sorghum was at six percent.
here for links to the complete USDA Crop Progress report and
each state's individual report.
OSU Livestock Market Economist
Derrell Peel Sees Improving Cattle Industry Conditions in Last
Friday's Cattle on Feed Report
On a weekly basis, Dr. Derrell Peel, Oklahoma State
University Extension Livestock Marketing Specialist, offers his
economic analysis of the beef cattle industry. This week Dr. Peel
looks at last Friday's Cattle on Feed Report and where we stand in
the southern plains with pasture and range conditions.
"Feedlot inventories on May 1 were 10.78 million head in
feedlots over 1000 head capacity. This is up 1.3 percent from
May 2015. Placements in April were 107.5 percent of year ago
levels; the third straight monthly increase in feedlot
placements. April marketings were 101.2 percent of last year.
The contrast between last year and this year in the feedlot industry
is telling. In 2016, it is clear that feedlots are building
inventories; placing more cattle in the face of larger feeder cattle
supplies. Marketings are also higher now and turnover rates
have increased. One year ago, placements were low but feedlot
inventories were steady because marketings were slow and feedlot
turnover was sluggish.
"Though feedlot inventories are now above year earlier levels
and climbing, the industry is in better shape; leaner and more agile
going into larger cattle supplies for the remainder of the
year. Cattle slaughter is up 2.7 percent for the year to date
but is up 4.4 percent year over year in the past six weeks.
Seasonally, the largest cattle slaughter will occur in the next month
but feedlots have pulled cattle ahead in April and May which will
temper seasonal slaughter peaks in June. More importantly,
aggressive feedlot marketings have brought carcass weights down
dramatically. In the latest carcass data, steer carcass weights, at
862 pounds, dropped below year earlier levels for the first time
since June, 2014. Overall cattle carcass weights, with steers,
cows and bulls all down year over year, are below year earlier levels
for the first time since the last week of 2013. Heifer carcass
weights remain slightly above year ago levels but have also fallen
sharply in the past few weeks.
Influence Production Agriculture
Written by Evan
Whitley, The Samuel Roberts
"The U.S. agricultural community has and will
continue to respond to consumers' needs. Regardless of whether it be
changing specific management practices to fit market-driven programs
(e.g., natural and organic) or adopting new technology to ensure
added efficiency resulting in greater product availability for a
growing population, the U. S. agriculture industry has always been
poised and ready to meet a challenge. Yet the challenges the industry
faces today are not as clear-cut as just producing more with less or
keeping a few more records to broaden marketing opportunities. It is
becoming increasingly apparent that in the not-so-distant future, a
broader population of producers will be asked to respond to market
signals that are even more dynamic and in many
instances counter-intuitive to previous mindsets and
"An example of this conundrum is the fact that in
mid-March, Whole Foods, a well-recognized natural and organic
purveyor, announced it will begin replacing faster-growing poultry
breeds with slower-growing varieties. This move, expected to be
complete by 2024, will reportedly increase average broiler time to
market by 23 percent or from the typical 42 days to between 56 and 62
days (potentially a 40 percent increase). After many years of
selecting for improved efficiency, at least one retailer, regardless
of total market share, is seemingly indicating to its industry
partners to not only slow down but to stop chasing efficiency.
And Whitley adds that there is also the battle over
GMO Labeling, as being played out in Vermont. He writes
"Although Vermont is a relatively small market, the impacts are
important due to overall supply chain integration and the
inefficiency of production measures geared to meet specific regional/state
requirements. As a result, larger food manufacturers are implementing
shifts to production measures and labeling methodology that will
impact nationwide distribution."
here to read more about what Evan sees as some of the changing
influences on American production agriculture.
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Oklahoma Quality Beef Network's
Gant Mourer Says Value-Added Programs Really Do Pay Off
The Oklahoma Quality Beef Network is a joint project
of the Oklahoma Cooperative Extension Service and the Oklahoma
Cattlemen's Association to help producers improve the quality of
their cattle and better access value-added marketing programs. OSU
Extension Beef Value Enhancement Specialist Gant Mourer
says that value was seen this past fall and winter when feeder cattle
"It was a really hard year, and every week, as we approached
December, it seemed to get harder and harder and a lot of us went
through that," he says. "But what we found is
pre-conditioning these cattle, we still maintain the value of those
Mourer says that while most producers still lost money during the
down trending market conditions, those who participated in a
value-added program mitigated their losses.
"Just simply hanging on to that calf for 45 days and not
managing them at all, not weaning them, not doing anything with them
- we lost about $250 a head over that short period of time," he
says. "But through these management practices and marketing that
way - or being a reputable producer - we only lost about $100 a head.
So we saw about $100 to $150 a head value in a down market
Mourer says there are many choices when it comes to choosing a
pre-conditioning program. He suggests working with a veterinarian to
identify appropriate vaccination protocols.
OQBN is starting to set dates for 2016 sales. Mourer says producers
looking to qualify for the program can find specific information at http://www.oqbn.okstate.edu/.
more about the benefits of the Oklahoma Quality Beef Network during
the latest Beef Buzz.
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USDA Leading U.S. Ethanol
Trade Mission To Mexico
Acting Deputy Secretary Michael
Scuse is leading a U.S. ethanol mission to Mexico on
May 24-25 to explore trade opportunities between the two countries.
The mission participants include representatives from the Renewable Fuels
Association, Growth Energy and the U.S. Grains Council who will
attend meetings with government officials, legislators and the
Mexican private industry.
As USDA explained, mission members will share their experiences with
both ethanol production and the development of renewable fuels
policies, with the goal of demonstrating how Mexico can implement its
own renewable fuels program.
State-owned oil company PEMEX has plans to begin selling E6 (5.8
percent) ethanol-blended gasoline in selected cities in the Mexican
states of Tamaulipas, San Luis Potosi and Veracruz. Implementation of
a nationwide E6 fuel option in Mexico would create a potential market
for 790 million gallons of ethanol (3 billion liters).
"Mexico, with the right policies in place, has the potential to
achieve similar benefits producing ethanol from sugarcane,"
Scuse said in a statement. "We view this as a partnership that
can provide benefits for both Mexico and the United States."
Noble Foundation Seminar Focuses on Veterinary Feed Directive
new federal regulation that affects livestock producers,
veterinarians and the feed industry is set to take full effect on
Jan. 1, 2017.
To help prepare all parties impacted by this regulation, The Samuel
Roberts Noble Foundation will host a Veterinary Feed Directive
seminar from 1-5 p.m., Thursday, June 16, at the Noble Foundation
"Implementation of the Veterinary Feed Directive is a
significant event in the livestock industry," said Bryan Nichols,
livestock consultant. "Producers, veterinarians and livestock
feed providers all must be aware of the implications of this
regulation before it comes into full effect so the transition can be
as seamless as possible."
To help provide understanding into the various facets of the new
regulation, the Noble Foundation has put together a group of expert
speakers that represents academia, the veterinary community and the
- L.D. Barker,
D.V.M., veterinarian: Obtaining a Veterinary Feed Directive from Your
- Brian Lubbers,
D.V.M., Ph.D., Kansas State University Microbial Surveillance Lab
director: Antibiotic Regulations and Resistance in Cattle Production.
Sellers, American Feed Industry Association senior
vice president of public policy and education: Veterinary Feed
Directive and the Feed Industry.
"This topic has generated a lot of questions," Nichols
said. "This is a great opportunity to hear from experts in
multiple fields who can answer many of those questions."
Boxed Beef Prices Shoot
Higher- Ed Czerwein Explains All
The Market News Reporter for USDA in Amarillo, Ed Czerwein,
regularly reports for us on the wholesale boxed beef market- and says
this past week was a really good week.
Ed writes "The daily spot Choice box beef cutout ended the
week last Friday at $225.96 which was $7.40 higher compared to
previous Friday but it had dropped a little at the end of the
week. There were 488 loads sold for the week in the daily box
beef cutout which was only 8% of the total volume
"The Comprehensive or weekly average Choice cutout which
includes all types of sales including the daily spot cutout was
$215.47 which was $8.32 higher on the heels of the daily spot jump
and also quite a few formulas were based on last week's big jump and
formula sales have much more volume than the daily spot trade.
"There were 5784 total loads sold which was 1063 loads lower
than the previous week. That was a big drop but many retail
operations would have already gotten their Memorial day product the
previous week and won't reorder until they see just how good holiday
Read more by clicking
here- and we have in our web story his audio analysis of the
weekly market as well- check it out!
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