Howdy Neighbors!

Oklahoma State Extension Livestock Market Economist Dr. Derrell Peel says several things jumped out to him in the August USDA Cattle on Feed Report- including the continuation of a smaller number of cattle on feed for the ninth month in a row. Peel also noted in his post report conversation with Ron Hays that the placement number that was six percent smaller than last July was bigger than what the pre trade guesses were predicting.

He believes a lot of that was because of the historic strength of the cattle market in recent weeks- as cattle producers sold cattle that normally would be marketed later in the fall much earlier to take advantage of prices that we have never seen before.

Peel says you could see the stronger placements than what the trade expected in the weekly auction reports- “for the last several weeks, our feeder cattle runs at the auctions have been bigger year over year- we are seeing a lot of calves coming to town right now- obviously with this market at record price levels, producers are taking advantage of it, so we are seeing a lot of unweaned calves come to town that normally would be marketed one to three months from now- but they are coming earlier.”

As they typically do, the South Korean wheat buyers who explored Washington, Oregon and Montana in late July carried in the back of their minds a lengthy list – a long and growing lineup, actually – of food products back home that depend on high-quality wheat grown in the United States. The trade team hosted by U.S. Wheat Associates (USW) included purchasing and quality managers from six major South Korean milling companies that collectively represent approximately 65% of the Korean flour market.

“For most participants, this was their first direct exposure to the U.S. wheat supply chain, making the experience especially meaningful,” said Channy Bae, USW country director in Seoul, who led the team.

A Firsthand Look at U.S. Grain Inspection and Transportation in Oregon

The 10-day tour began at USW’s West Coast office in Portland, where participants received an overview of U.S. wheat export operations. Stops at the Wheat Marketing Center, the Kalama Export Terminal and the USDA’s Federal Grain Inspection Service (FGIS) allowed the South Korean buyers a chance to observe the export process and quality control systems firsthand. Meetings with traders provided insights into current market trends by wheat class.

Reuters reported on Sunday evening that a person who had traveled to the U.S. from Guatemala was confirmed as receiving treatment in Maryland for New World screwworm (NWS).

According to Reuters, the U.S. Centers for Disease Control and Prevention (CDC) had confirmed the human case. State veterinarians learned of the human case during a call last week with the CDC. The Oklahoma Farm Report reached out to Oklahoma State Veterinarian Dr. Rod Hall who tells us that Maryland officials had indicated to other states that they “are confident it’s contained.” Dr. Hall adds he believes “we are probably more likely to get it in a person or pet than we are in livestock in the short term.”

This is not the first case of a U.S. traveler being infect with NWS. Two other cases include a 15-year-old girl who returned from a 3-week hiking trip to Peru and a 12-year-old girl who had been on a church mission to Palmira, Colombia.

The National Cattlemen’s Beef Association CEO Colin Woodall says they are aware of the developments: “NCBA is aware of a New World screwworm case detected in a person traveling from abroad into Maryland. The case was quickly identified and handled by the CDC in accordance with their protocols. Based on what has been shared with state animal health officials, we do not see any elevated risk to the livestock industry at this time. We appreciate the diligence of human health authorities. This case was quickly addressed thanks to existing protocols, and we are thankful for the ongoing coordination between the CDC, state departments of health, state animal health officials, and USDA.”

Ever wonder how the Wildlife Department decides which nongame wildlife conservation efforts should be undertaken? Many of those decisions boil down to what is reflected in a living document known as Oklahoma’s State Wildlife Action Plan. 

This habitat-based document guides how ODWC manages rare, declining, threatened, and endangered species, and is required for ODWC’s continued eligibility for funding from the federal State Wildlife Grants Program. States must update their plans every 10 years, and the staff of ODWC’s Wildlife Diversity Program are drafting Oklahoma’s plan for 2025.

“We would love to have the public’s help in shaping the state’s plan,” said Mark Howery, a senior wildlife biologist for the Wildlife Department. “This plan may be a required document for the Wildlife Department, but it is not regulatory in nature. Instead, it is a guiding and educational document that gives us the opportunity to share which species are declining in the state and what could be done to improve their status.”  

Senior Farm and Ranch Broadcaster Ron Hays speaks with longtime Manager Bill Barnhart of OKC West who says the current cattle market has been unlike anything he’s seen in years. “It’s been crazy good. It just seems like we blow through a price barrier every week, and it’s been like this since May,” he explained. We looked back at some of those prices and compared them from May to right now, and some of those classes are 40, 50, even 60 dollars a hundred weight higher than they were just 90 days ago, and that’s quite a market.”

Barnhart says buyers who initially resisted the higher prices are now returning in force. “They balk the first time they have to try to buy them, and sooner or later, they need cattle, and so now they’re coming back in and they’re just scooping them up,” he said. With lighter runs of cattle and strong demand, he added, “Some of them are bringing just incredible prices.”

Looking ahead, producers are weighing the cost of putting calves on wheat pasture. Barnhart explained, “You’ve got to, you know, buy a $2,200, $2,300, $2,400 calf to put on wheat pasture. And you know, their challenge is going to be, how are we going to make them work? Well, it’s going to be quite an interesting game we play here for the next several months.”

The U.S. Environmental Protection Agency (EPA) is acting on the backlog of 175 Small Refinery Exemption (SRE) petitions from 38 small refineries for 2016 – 2024 compliance years. In consultation with the U.S. Department of Energy (DOE), EPA reviewed and considered information submitted by each petitioning small refinery. EPA then evaluated each SRE petition consistent with the Clean Air Act and case law. After carefully reviewing all information, EPA is granting full exemptions to 63 petitions, granting partial exemptions to 77 petitions, denying 28 petitions, and determining 7 petitions to be ineligible.

EPA is reaffirming the policy it set in the first Trump Administration through the 2020 Renewable Volume Obligation Rulemaking, granting partial relief (a 50 percent exemption) where a small refinery has demonstrated that it faces partial hardship. Under DOE’s 2011 Small Refinery Study, small refineries would have been denied any relief despite demonstrating partial hardship. With today’s action, EPA is getting the SRE program back on track with an approach that recognizes some small refineries are impacted more significantly than others and that EPA’s relief should reflect those differences. Concurrent with this decision, EPA will update the Renewable Fuel Standard (RFS) Small Refinery Exemption website to reflect action on the 175 petitions.

At the same time, EPA is reaffirming a policy to return RFS compliance credits, known as Renewable Identification Numbers (RINs), previously retired for compliance when a small refinery receives an exemption for a prior compliance year. Under the RFS program, RINs have a two-year window for use, covering the compliance year in which they were generated and the following compliance year. Therefore, while 2022 and earlier vintage RINs are not eligible for use to meet the open 2024 compliance obligations or future obligations, these vintage RINs can be used to demonstrate compliance for prior compliance years consistent with their two-year window.

Growth Energy, the nation’s largest biofuel trade association, issued the following statement today “With more than 140 granted refinery exemptions, today’s decision alone does not give farmers and biofuel producers the certainty they need,” said Growth Energy CEO Emily Skor. “It is imperative that EPA reallocates each and every exempt gallon in a forthcoming rule to mitigate the potentially devastating impact on biofuel demand. We appreciate EPA’s commitment to issue a rule that ensures promised homegrown biofuel gallons reach the marketplace and upholds the administration’s commitment to American energy dominance.”

American Soybean Association “EPA’s swift actions to address its inherited backlog of small refinery exemptions will restore certainty to the Renewable Fuel Standard, which supports a key domestic market for U.S. soybeans,” said Caleb Ragland, ASA President and farmer from Magnolia, KY. “U.S. soybean farmers are facing dire economic impacts this year, and the work of EPA to clear the backlog of pending SREs will help ensure stability for biofuel production moving forward. Paired with the robust proposed renewable volume obligations for 2026-2027 and provisions to bolster the use of domestic feedstocks like U.S. soy, the future of the domestic biofuel value chain is bright.”

American Farm Bureau Federation President Zippy Duvall: “Renewable fuels have been a tremendous success story for the country and the rural economy. The Renewable Fuel Standard has reduced our country’s dependence on foreign oil, reduced air pollution, increased farm income, and provided good-paying jobs in rural America. “Farmers rely on a robust renewable fuel standard with strong renewable volume obligations that further build the biofuels market. EPA’s measured approach will prevent overuse of small refinery exemptions that would risk undermining the RFS and the biofuels market for farmers.  

Corn growers are stepping up efforts to stay ahead of rising mycotoxin risks by expanding a proven research model that has delivered results for more than a decade. The Aflatoxin Mitigation Center of Excellence (AMCOE) is now becoming the Mycotoxin Mitigation Center of Excellence, broadening its focus to address a full spectrum of mycotoxins, including aflatoxin, fumonisins, vomitoxin and others, before they create bigger problems for corn producers.

Mycotoxins are toxic compounds produced by mold that can lead to rejected loads, reduced prices and lost market access. They are a significant threat to U.S. corn crops, serving up an estimated $1 billion in losses every year. And with changing weather patterns and growing buyer sensitivity, NCGA, along with state corn associations, are taking a proactive approach to help protect crop quality, value and profitability.

“Aflatoxin and fumonison have been a big issue in our southern corn producing states for several years. We’ve seen vomitoxin become a more prevalent mycotoxin that affects corn production in the eastern Corn Belt as well, so it’s critical that we expand our research focus,” said Chad Epler, chair of NCGA’s research and new uses action team. “It’s about staying ahead, so growers can take the steps they need to in order to protect their crops and mitigate the impacts to our downstream consumers and their customers.”

Checking the Markets...

Cattle markets keep rising. At the end of the week- TCFA reported that feedlots in Texas, Oklahoma and New Mexico saw cash cattle trade up $5 a hundred from the USDA market reports of a week ago- now at $240 for both steers and heifers. Boxed beef prices were mostly steady on Friday, with the Choice cutout closing at $407.91/cwt, up just $0.05 from the previous day, and Select at $383.66/cwt, up $0.06. That choice cutout settlement for Friday is the new high of 2025.

Superior Livestock's Big Horn Classic saw over 114,000 head sell last week. Feeder cattle and calf trades once again moving sharply higher and again setting records in most weight categories. Demand very good for all cattle.  Oklahoma and Texas seven weigh yearlings ranged from $3.67 to $3.95 a pound while five year calves sold for $4.10 to $5.09 a pound.

OKC West is our Market Links Sponsor- they sell cattle three days a week- Cows on Mondays, Stockers on Tuesday and Feeders on Wednesday- Call 405-262-8800 to learn more.

Click here for our Markets Page on OklahomaFarmReport.Com- there you will find many of the reports we have linked on the right hand column found on the previous format of our email.

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