~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Tuesday June 7, 2011A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Strong Demand for Wheat Pushes Overall Value of 2011 Oklahoma Wheat Crop Close to 2010 Value
-- Latest Oklahoma Crop Weather Updates Shows 45% of State Wheat Crop Harvested
-- Wheat Harvest in Pictures- and a Quick Canola Update
-- OSU's Derrell Peel says Drought Likely to Impact Cattle Market for Years
-- U.S. Cattlemen's Association Still Supports COOL Despite Preliminary WTO Ruling
-- U.S. Wheat Associates Release Video Stressing Importance of Federal Export Market Development Programs
-- Beef Demand Seems Decent as We Begin Summer Run
-- 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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Johnston Enterprises- proud to be serving agriculture across
Oklahoma and around the world since 1893. One of the great success stories
of the Johnston brand is Wrangler Bermudagrass- the most widely planted
true cold-tolerant seeded forage bermudagrass in the United States. For
more on Johnston Enterprises- click
here for their brand new website!
We invite you to listen to us on great radio stations across the
region on the Radio Oklahoma Network weekdays- if you missed this
morning's Farm News - or you are in an area where you can't hear it- click
here for this morning's Farm news from Ron Hays on RON.
Strong Demand for Wheat Pushes Overall Value of 2011 Oklahoma Wheat Crop Close to 2010 Value
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma State University Grain Marketing Extension Economist Dr. Kim Anderson sat down with yours truly and discussed the potential value of the wheat crop for this year in comparison to last year. This time last year, wheat was around $3.00 per bushel on a cash basis across most of Oklahoma, while this year wheat is over $8.00 per bushel for those producers hauling wheat to the elevator and selling.. Anderson says this will lead to a strongly valued crop despite the lower bushels this year. Many producers sold at close to harvest time last year- and were not able to take advantage of higher wheat prices that ocurred later in the marketing year. Overall, the value of the 2010 Oklahoma wheat crop was pegged by USDA at $616,590,000, based on 120.9 million bushels and an average price of $5.10 for the full marketing year.
Anderson believes that producers could end up with a 70 million bushel
crop in Oklahoma, which at $8.25 per bushel, results in a crop worth
almost $580 million. Because of the higher price available to producers,
there will not be a big drop in value to producers even though there are
fewer bushels this year. In fact, this early estimate is only about 6%
fewer dollars back to Oklahoma wheat farmers on the smaller crop in 2011
versus 2010. However, the lack of volume is not good for elevators and the
industry that rely on the volume of wheat going through the market, says
Anderson. And for those producers who ended up with no crop, they only get
proceeds from crop insurance, a far cry from those producers who have
thirty bushel an acre wheat or better.
Click on the LINK below to hear the rest of Ron and Dr. Anderson's conversation on the potential value of this year's wheat crop.
Latest Oklahoma Crop Weather Updates Shows 45% of State Wheat Crop Harvested
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The latest crop weather update reminds us all of the dryness of our recent weather pattern- "Oklahoma experienced mild, dry weather for the majority of last week with statewide temperatures averaging 80 degrees. Very little rainfall was recorded across the State during the week. Notably, the Boise City Mesonet received a quarter-inch of rainfall last week, ending a 250 day dry spell for the area. In addition to the warm temperatures, the latter portion of the week was windy, with wind gusts up to 31 miles per hour. Portions of the state are still experiencing drought conditions and are still in need of rainfall. Topsoil moisture conditions decreased slightly to rate mostly in the short to very short range, with subsoil moisture conditions also rating mostly in the short to very short range. The mild weather allowed for a busy week of field activities, with 6.6 days suitable for field work."
The 2011 wheat harvest moved rapidly with the dry conditions. "Wheat
harvested increased significantly, jumping 32 points to reach 45 percent
complete by Sunday." That 45% is well ahead of the ten percent done by a
year ago and the five year average of 20%. Texas harvest was rather slow
this past week, with 24% of their crop now complete, just slightly ahead
of the five year average of 21%. Kansas still has no measurable amount of
harvest done, according to their state statistician.
As far as our spring crops are concerned- "Row crop planting continued to progress steadily. Corn emerged reached 91 percent complete by Sunday. Sorghum seedbed preparation increased to 93 percent complete, while 63 percent was planted and 26 percent of the crop had emerged by week's end. Soybean seedbed preparation was 84 percent complete while 54 percent of the crop was planted and 33 percent had emerged by Sunday. Peanut planting was 84 percent complete by week's end and 56 percent of the crop had emerged. Cotton planted was 55 percent complete and 14 percent of the crop had emerged by Sunday."
Wheat Harvest in Pictures- and a Quick Canola Update
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~We will have a new canola TV available later today on our website and on YouTube- as we spent some time with Heath Sanders of PCOM and Josh Bushong of OSU as they were cutting some of the canola test plots in western Oklahoma County- south of I-40 on Council Road- this is close to where the new PCOM crushing facility will be in the next couple of years.
While there, we saw a single combine rolling through a wheat field on the PCOM land- and caught some pictures of what looked to be some pretty good wheat- especially for this drought stressed year. The combine operator was not sure about the variety, but felt the yields were in the low 30s. The wheat that he was cutting with this Gleaner combine was short, but thick and had not been grazed. Click on the LINK below for a few of the pictures we grabbed from this harvest field on Monday afternoon.
We also have had a producer share with us some details of harvest in
northcentral-northwest Oklahoma. This producer writes "In NW Oklahoma a
100 acre field of Duster made over 44 bu/acre. Jackpot yields were in the
mid 30's. A half-section NE of Enid made 41- mostly Doans. Wheat after
full season milo was very poor- it was too dry, and the plants shut down
early with one quarter section making 11 bushels per acre after
OSU's Derrell Peel says Drought Likely to Impact Cattle Market for Years
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The on-going drought in the Southern Plains and surrounding regions is having immediate market impacts and, with each passing day is increasingly likely to have multi-year impacts in the future. According to OSU Extension Livestock Market Economist Dr. Derrell Peel, it is difficult to determine the exact impacts of the drought but some indications are emerging. The contrast between beef cow slaughter nationally and in the drought region clearly indicates that the impacts are significant. For the year to date, beef cow slaughter is down 4.4 percent nationally, while beef cow slaughter in Region 6, which closely corresponds to the drought area, is up 11.7 percent
Measuring the drought impacts is difficult since it is impossible to know for sure what would have happened without the drought. However, analysis of typical slaughter patterns and tendencies suggests a range of impacts that probably captures the drought impact. At a minimum, Region 6 beef cow slaughter at the same rate (relative to the cow herd) as last year (which implies additional herd liquidation) would suggest about 49,000 head less slaughter than last year. This would result in a national slaughter rate that would be down 7.7 percent compared to the observed rate of 4.4 percent for the year to date. Moreover, a Region 6 slaughter rate that is closer to the long term average regional rate would suggest that an additional 100,000 head of cows are added to total beef cow slaughter so far this year due to the drought. Adjusting for this would put the national rate over 11 percent less for the year to date.
Click on the LINK below to read the rest of Dr. Derrell Peel's thoughts on the impact of drought on the cattle market now and in years to come.
U.S. Cattlemen's Association Still Supports COOL Despite Preliminary WTO Ruling
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The U.S. Cattlemen's Association (USCA) today issued the following comment and background information regarding media reports of a preliminary WTO ruling on the U.S. country of origin labeling rules as required by the 2002 Farm Bill and as amended by the 2008 Farm Bill.
Last week the Daily Report for Executives reported that the World Trade Organization's (WTO) dispute resolution panel in the Canadian and Mexican challenge of the U.S. country of origin labeling (COOL) law has issued a preliminary ruling in favor of Canada and Mexico. The Daily Report for Executives story surrounds a confidential report circulated only to the parties involved, but which was apparently leaked immediately to the media.
The three-member dispute panel reportedly found that U.S. COOL
requirements do not fulfill the objective of helping inform consumers of
the origin of meat, act as a protectionist barrier and as a result,
violate the WTO agreement on Technical Barriers to Trade (TBT). The WTO
dispute three-member panel hearing the case consists of a Swiss diplomat;
Pakistan's ambassador to the WTO; and a WTO staffer-turned-trade
consultant from Portugal.
U.S. Wheat Associates Release Video Stressing Importance of Federal Export Market Development Programs
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The long-term impact on global demand for U.S. wheat and farm income would be devastating if Congress fails to fund the Market Access Program (MAP) and the Foreign Market Development (FMD) program administered by USDA's Foreign Agricultural Service.
That is the conclusion of a new video presentation just released by U.S. Wheat Associates (USW), the wheat industry's export market development organization. Titled "Export Market Development: A Vital Partnership with U.S. Wheat." Click on the LINK below to watch this video presentation.
While U.S. farmers produce wheat of the highest quality, only about 50
percent of each year's crop is consumed here at home. As a result,
developing and growing U.S. wheat exports has a direct impact on farm gate
prices. Through MAP and FMD, the federal government shares costs with U.S.
farmers to help them compete in a growing global market. Yet even in the
face of increasing export investment by foreign competitors, these
programs are at risk in the current federal budget debate.
Beef Demand Seems Decent as We Begin Summer Run
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Beef movement over the Memorial Day holiday period seemed to be fairly good- and according to Jim Robb with the Livestock Market Information Center out of Denver, there is hope that the next couple of holidays that are often associated with grilling, Fathers Day and Fourth of July, will be positive demand events for steaks and hamburgers.
We have comments from Robb on both the demand side of the equation, as
well as the supply side as he also talks about cattle slaughter in
comments we have with him on our Tuesday Beef Buzz.
Click on the LINK below for today's Beef Buzz- which is the same program heard on great radio stations across our region that are a part of the Radio Oklahoma Network.
Our thanks to Midwest Farms Shows, PCOM, P & K Equipment/ P & K Wind Energy, Johnston Enterprises, American Farmers & Ranchers, KIS Futures and Oklahoma Mineral Buyers 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 $12.33 per bushel- as of the close of trade Wednesday, while the 2011 New Crop contracts for Canola are now available are $12.33 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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