~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Thursday December 2, 2010A service of Producers Cooperative Oil Mill, Midwest Farm Shows and KIS Futures!
-- Seven Buck Wheat- and $150 Calves!!!
-- Will 2011 See Even Higher Calf Prices?
-- Discounts for Low Protein Coming in 2011 in Kansas City Wheat Futures Contracts
-- Clean Line Proposes Building Wind Energy Power "Super Highway" to the Southeastern US
-- Phil Richardson of Minco Tapped as New Chairman of House Ag Committee for Oklahoma Legislative Session in 2011
-- NCBA Commends Senators Who Are Calling for Ethanol Subsidies to be Allowed to Expire
-- Meanwhile- other Senators Want Those Subsidies to Continue
-- Let's Check the Markets!
Here's your morning farm news headlines from the Director of Farm Programming for the Radio Oklahoma Network, Ron Hays. We are proud to have KIS Futures as a regular sponsor of our daily email update. KIS Futures provides Oklahoma Farmers & Ranchers with futures & options hedging services in the livestock and grain markets- Click here for the free market quote page they provide us for our website or call them at 1-800-256-2555.
We are also excited to have as one of our sponsors for the daily email
Producers Cooperative Oil Mill, with 64 years of progress through
producer ownership. Call Brandon Winters at 405-232-7555 for more
information on the oilseed crops they handle, including sunflowers and
canola- and remember they post closing market prices for canola and
sunflowers on the PCOM
website- go there by clicking here.
If you have received this by someone forwarding it to you, you are welcome to subscribe and get this weekday update sent to you directly by clicking here.
Seven Buck Wheat- and $150 Calves!!!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Dryness in the US Winter Wheat belt and concerns about the condition of the Australian wheat crop (too much rain in Eastern Australia) have been enough to shove wheat prices in US markets higher. Kansas City wheat contracts- basis the March delivery- rose a half a dollar yesterday- and overnight electronic trade as we write this has the market up another seven or eight cents per bushel.
That's enough to bring Oklahoma cash grain prices back to the seven dollar per bushel neighborhood. We have the daily cash grain prices linked at the bottom of our daily report, as well as a two page summary of the Kansas City Board of Trade- that's everyday- and for today- you can also click here to see those cash wheat- and other grain prices- that are all soaring because of- among other things- expectations that tightening stocks of major ag commodities will stay tight well into next year.
On the cattle side of the ledger, the OKC West in El Reno market is a perfect focal point this morning for really strong yearling and calf prices. They had a big run, bigger than the Oklahoma National Stockyards this week, and sharply higher prices for calves as well as a higher market for yearlings. Several drafts of value added cattle were in the mix- and with farmers looking for a few more cattle to go onto wheat pasture- demand was high.
Some baby calves weighing from 200 to 400 pounds topped out over $1.70
a pound- four weight calves were as high as $1.55 to $1.59 a pound and
five weight calves had a high end of $1.47 to $1.50. Click
here for the full OKC West Report courtesy of USDA Market news. Keep
in mind many of these top prices were for value added cattle- those of you
who don't want to perform the management practices to properly wean and
get your animals ready for market- you won't earn or deserve these top
Will 2011 See Even Higher Calf Prices?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The early answer to the question above seems to "probably." Our Thursday Beef Buzz is with Dr. Derrell Peel and we are talking about current calf prices and where we may be headed in the new year.
Dr. Peel calls the early months of 2011 as being potentially "uncharted waters" in which he sees higher cattle prices up and down the supply chain- with tight supplies of calves to help underpin lighter weight cattle prices, while the unknown will be how demand will handle cash cattle prices if they stay above a dollar per pound.
You can hear our conversation with Dr. Peel by clicking on the LINK below- the Beef Buzz is a regular feature heard on many of our great radio stations on the Radio Oklahoma Network- and can be found on our website by simply clicking on the Beef Buzz button on the left hand side column of any page of our website, www.OklahomaFarmReport.Com.
Discounts for Low Protein Coming in 2011 in Kansas City Wheat Futures Contracts
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The members of the Kansas City Board of Trade in a special election held on November 30 approved amendments to the KCBT's Hard Red Winter wheat futures contract by a vote of 115 to 36. The Board of Directors approved the amendments at a meeting on November 4. The Oklahoma Wheat Industry will likely be most concerned with points detailing discounts for low protein and also a lower tolerance for vomitoxin. One grain industry official noted that both the protein discount and the adjustment for vomitoxin could cause Oklahoma wheat producers problems.
We have the major points of the proposed changes that may be coming to the hard red winter wheat contracts in Kansas City starting with the September 2011 contracts- just click on the LINK below to read more.
Clean Line Proposes Building Wind Energy Power "Super Highway" to the Southeastern US
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Some wind energy experts have dubbed Oklahoma as the "Saudia Arabia of Wind." Western Oklahoma is part of what Mario Hurtado of Clean Line calls a "rich vein" of wind resources that runs north and south across the middle of the United States. He calls the wind resources found in Oklahoma "huge" and that is why his company is interested in building a direct current high voltage transmission line from the Texas County area in the Oklahoma Panhandle across Oklahoma into Arkansas- ending close to Memphis, Tennessee where the wind generated power from our Panhandle would be linked to the Tennessee Valley Authority portion of the national electrical grid.
This project is being called by Clean Line the Plains & Eastern Clean Line. Their website says of the project "Spanning more than 800 miles, the Plains & Eastern Clean Line will connect abundant renewable energy resources with areas that have a high demand for clean, reliable energy. The Plains & Eastern Clean Line will increase transmission system reliability, improve energy security, stimulate economic development, and reduce CO2 emissions."
We talked extensively with Mario Hurtado of Clean Line about this multi year project they are undertaking here in the southern High Plains. You can hear that conversation by clicking on the link below- we have our audio conversation, plus more details about their plans for this transmission line from the Guymon area eastward that could carry enough power to provide electricity to two million homes.
Phil Richardson of Minco Tapped as New Chairman of House Ag Committee for Oklahoma Legislative Session in 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma House Speaker Kris Steele has announced committee chairs for the 2011 and 2012 legislative sessions.
The committee chairs will be active in advancing legislation arising from the House Republican caucus agenda while also dealing with the thousands of other bills filed each year.
The House Ag Committee Chairman in the last legislature, Don Armes of Faxon, has graduated to become the Chairman of the House Appropriations Subcommittee on Natural Resources and Regulatory Services. His Vice Chairman will be Leslie Osborn of Tuttle. The new House Ag Committee Chairman is Phil Richardson of Minco, while Todd Russ of Cordell will serve as the Vice Chair. Former Oklahoma Farm Bureau President Steve Kouplen of Beggs will serve as Vice Chairman for the Higher Educationa nd Career Tech Committee- one of five Democrats selected to serve in a Vice Chairmanship.
One lawmaker that is not named to a Committee Chairmanship this year
who is near and dear to the hearts of folks in rural Oklahoma is Dale
DeWitt of Braman. His task is even bigger this year- as he will serve as
the Majority Leader in the Oklahoma House in 2011 and 2012.
NCBA Commends Senators Who Are Calling for Ethanol Subsidies to be Allowed to Expire
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The National Cattlemens Beef Association (NCBA) commends the U.S. Senators who sent a letter to U.S. Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) urging them to allow the 30-year-old tax credit and protective tariff for corn-based ethanol to expire as scheduled on Dec. 31, 2010. NCBA Executive Director of Legislative Affairs Kristina Butts said that the "commonsense" mentality taken by the Senators who signed the letter is laudable and that she hoped more Senators would follow suit to allow the subsidies to expire.
"The corn-based ethanol industry has been propped up for 30 years with the 45 cent-per-gallon blending credit and the 54 cent-per-gallon import tariff, but the day has come for these subsidies to end," Butts said. "NCBA supports the development of renewable and alternative fuels. However, as an industry that competes head-to-head with the corn-based ethanol industry for our major input, we feel it's time to level the playing field for all commodities competing for corn. Allowing the subsidies to expire may require a tough vote for elected officials, but NCBA commends the U.S. Senators for taking their stand in support of allowing these ethanol subsidies to expire."
Click on the LINK below for more on why the NCBA is liking the plan to let ethanol subsidies lapse as of December 31 of this year.
Meanwhile- other Senators Want Those Subsidies to Continue
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A bipartisan group of 15 senators today urged Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell to extend critical tax incentives for ethanol use before they expire at the end of this year.
"We are writing to ask that you make an extension of renewable fuel tax and tariff provisions a high priority on the Senate's legislative agenda for the remainder of the year. Allowing the provisions to expire or remain expired would threaten jobs, harm the environment, weaken our renewable fuel industries, and increase our dependence on foreign oil," the senators wrote. The letter was led by Senators Chuck Grassley and Kent Conrad.
Citing America's dangerous dependence on foreign oil and delicate economy, the senators warned that allowing the tax incentives to expire would lead to increased oil imports and job losses.
The senators also underscored the need to extend the tax incentive to provide stability for discussions on responsible reform of current ethanol tax policy and investments. "Next year the Senate will be in a position to debate alternative legislative proposals for developing renewable fuels, including proposals to invest in biofuel infrastructure. In advance of this debate, we believe that, in an effort to provide stability and certainty for producers and consumers of renewable fuels, Congress must act to extend biofuels tax and tariff policies for the longest term possible."
Our thanks to Midwest Farms Shows, PCOM, P & K Equipment/ P & K Wind Energy, Johnston Enterprises, American Farmers & Ranchers, KIS Futures and Big Iron Online Auctions for their support of our daily Farm News Update. For your convenience, we have our sponsors' websites linked here- just click on their name to jump to their website- check their sites out and let these folks know you appreciate the support of this daily email, as their sponsorship helps us keep this arriving in your inbox on a regular basis- FREE!
We also invite you to check out our website at the link below to check out an archive of these daily emails, audio reports and top farm news story links from around the globe.
Let's Check the Markets!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~We've had requests to include Canola prices for your convenience here- and we will be doing so on a regular basis. Current cash price for Canola is $9.25 per bushel, while the 2010 New Crop contracts for Canola are now available are $9.90 per bushel- delivered to local participating elevators that are working with PCOM.
Here are some links we will leave in place on an ongoing basis- Click
on the name of the report to go to that link:
God Bless! You can reach us at the following: