~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Tuesday January 4, 2011A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Maybe Seven Dollar Wheat Makes Sense- So says Dr. Kim Anderson of OSU
-- Beef Industry Needs to Understand and Respond to Today's Female Shopper
-- Oklahoma State Senate Committee Assignments Announced for 2011-2012
-- Record Volume of Futures Trade at Kansas City Board of Trade
-- Are You Ready to Roller Coaster in 2011?
-- Cattle Trails Conference This Friday in Lawton
-- 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 pleased to have American Farmers & Ranchers Mutual Insurance Company as a regular sponsor of our daily update- click here to go to their AFR web site to learn more about their efforts to serve rural America!
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Maybe Seven Dollar Wheat Makes Sense- So says Dr. Kim Anderson of OSU
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma State University Extension Grain Marketing Economist Dr. Kim Anderson says that he has reviewed how the market is pricing wheat as we begin 2011- and perhaps his earlier ideas that the market is in "bubble mode" is not necessarily true. The wheat market is well above price levels of a year ago and what farmers were offered at harvest this past June for the 2010 crop.
In focusing on the global and US supplies of wheat- we are above the historical average in the number of bushels we have on hand- but Dr. Anderson says you can't look at the supply situation in a vacuum. You must also consider usage. And consumption of wheat globally has been growing. In fact, over a five year period dating back to 2006, our consumption is 1.8 billion bushels above the historical average. Consumption has grown significantly for wheat- and that seems to give credibility to the market pushing Kansas City wheat futures close to nine dollars- and cash wheat prices back at the farmgate in Oklahoma in the seven dollar to seven- fifty neighborhood.
You can click on the LINK below for more from Dr. Anderson on this- including an audio conversation that he had with our colleague Lyndall Stout from SUNUP as we begin the New Year. Anderson explains his about face on this- and what producers might want to be thinking about in terms of forward contracting the 2011 crop.
Beef Industry Needs to Understand and Respond to Today's Female Shopper
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A study that has received virtually no publicity offers some powerful ideas about today's female shopper and how she perceives the beef produced here in the United States. Intervet/Schering-Plough Animal Health commissioned a study this past year that was conducted by a leading women's marketing company, "Just Ask a Woman," on women's beliefs and behaviors related to beef.
Just Ask a Woman reports that women are the most powerful shoppers, buying or influencing nearly 85% of everything sold. In today's society, the beef industry is under attack in a very public way, and despite the fact that beef producers (actually beef farmers is a better term, according to Tracy Chapman of Just Ask a Woman) are working to provide the highest quality and variety of beef products, the challenges are very real from anti-agriculture activists, popular "story tellers" and confusing labels. Just Ask a Woman contends that "these negative influences rally the power of the media, including the celebrity community, to devalue the beef we produce and sell."
We have part one of a two part series that is featured on today's Beef Buzz with Tracy Chapman of Just Ask a Woman. You can hear her comments by clicking on the LINK below to jump to our January 4th Beef Buzz. We will have part two with Tracy tomorrow- and will have a PDF of a brochure that Intervet/Schering Plough provided at Tracy's presentation at the 2010 Texas Cattle Feeders Convention in Oklahoma City.
Oklahoma State Senate Committee Assignments Announced for 2011-2012
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~As the 2011 State Legislative Session draws closer- lawmakers officially start the first week of February- Senate leadership have announced the makeup of all Committees for the next two years. Senate President Pro Tempore Designate Brian Bingman, Republican of Sapulpa, made the announcement- and indicated in a statement that "We had a lot of experience and talent to draw from when making these appointments."
A key appointment for agriculture and rural Oklahoma that Senator Bingman previously announced was his selection of Sen. Mike Schulz, R-Altus, to serve as Floor Leader. Schulz will serve as ex-officio member of all committees. The Senator is a farmer from Jackson County and former staffer for the Oklahoma Farm Bureau.
The Senate Agriculture and Rural Development Committee will be chaired
by Eddie Fields of Wynona, with the Vice Chairman this year to be Senator
Ron Justice of Chickasha. Senator Justice moves up as he will serve as the
Chairman of the Senate Appropriations Subcommittee for Natural Resources.
Other Ag Committee slots will be filled in 2011-2012 by Sen. David Myers -
R(also the Chairman of the FULL Appropriations Committee)
Record Volume of Futures Trade at Kansas City Board of Trade
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Kansas City Board of Trade set a new annual volume trading record for the exchange as a whole in 2010, trading 5,697,874 contracts and breaking the previous annual volume record of 5,287,190 contracts set in 2006 by 7.8 percent.
Hard Red Winter wheat futures volume traded in 2010 set a new annual volume record as well. A total of 5,549,842 contracts were traded, breaking the previous record of 4,763,168 contracts set in 2006 by 16.5 percent.
Click on the LINK below for more on this story- we have linked over to the Kansas City Board of Trade within our webstory where they have charts to see on the volume levels of 2010.
Are You Ready to Roller Coaster in 2011?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I know that "Roller Coaster" is not a verb- but the ride up and down in 2011 could be wild and swift for livestock farmers- depending on how several factors play out. Steve Meyer (who pork producers know well) and Len Steiner write a regular electronic news column for the CME group- and in their first effort for 2011- they have listed five "out of the box" factors that could be good or bad for those who raise livestock with the intention of trying to make a profit. We spotlight a couple of them below- and you can go to our LINK below to see all five factors and more from Meyer and Steiner.
The first factor they list (Although they say they are in no particular order) is Fertilizer prices. "That one might seem a bit odd given its removal by several degrees from livestock production but we think they will be a key in this spring's battle for acres and, as they did in 2008, have some impact on the carrying capacity of southern pastures that are fertilized as a common practice. The big impact will be on "expected returns over cash costs" for corn, cotton and, to a lesser degree, wheat producers. Corn wins any race to generate revenues. 150 bushels (or 200+ in much of the major corn producing state) times $6 per bushel generates a LOT OF REVENUE. But achieving those yields also generates a lot of cost because of the need for more fertilizer, especially nitrogen. How "expected returns over cash costs" play out for the major crops this spring will drive planting intentions and actual plantings and impact grain markets for 2011 and 2012."
They also consider one of the five factors to watch the Weather. "The entire situation with grain supplies and demands leaves U.S. agriculture at perhaps its most vulnerable position in years regarding weather. With projected carryout stocks of 832 million bushels of corn and 165 million bushels of soybeans, we cannot stand a short crop of either in 2011. We've said it before but will way it again: The last major drought in the U.S. corn belt occurred in 1988 - now 22 years ago. We are still trying to get better at predicting markets, so we will not at this time begin trying to predict the weather but history says we are due for a summer of low rainfall and high temperatures. Dr. Elwyn Taylor at Iowa State points out that, based on 800 years' worth of tree-ring data, the longest period between droughts in what is now Iowa has been 23 years. If we get through this year without a drought, we will be in new territory and bucking 800 years of history."
Cattle Trails Conference This Friday in Lawton
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Cattle Trails Cattle Conferences are a joint effort between Oklahoma Cooperative Extension Service and Texas AgriLife Extension Service. The vision of the planning committee is to create annual conferences that will include up-to-date information on topics that will influence cattle profits. In effect, the conference will assist cattle owners and operators in driving their cattle to profits.
The expected audience is cattle owners and operators from the Southern Oklahoma and North Texas area. The conferences will alternate between Oklahoma and Texas each year. The 2011 Cow-Calf conference will be held at the Comanche County Fairgrounds Coliseum in Lawton, Oklahoma on January 7, 2011.
James Henderson of Bradley 3 Ranch in Memphis, Texas will be one of the featured speakers for this early 2011 event- and also on the program will be several extension folks from both Oklahoma and Texas. Click on the LINK below for our calendar item which includes a link to the brochure about the program and how to register.
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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 $9.95 per bushel, while the 2011 New Crop contracts for Canola are now available are $10.60 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:
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