~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Tuesday August 23, 2011A service of Producers Cooperative Oil Mill, Midwest Farm Shows and KIS Futures!
-- A Hot Time in the Old Town Tonight- Grandfield- and OKC- Get Their Records
-- Oklahoma Crop Weather Update- Oh So Dry!
-- Dryland Cotton Almost a Total Failure on Texas High Plains
-- Do the July Feedlot Placements Really Change Cattle Market?
-- Risk Management Decisions are Crucial in Current Cattle Market
-- National Sorghum Producers Elect New Officers and Welcome New Directors
-- 2011 Oklahoma Wheat Review on Tap for Today at Ft. Reno
-- 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- and their IPHONE App, which provides all electronic futures quotes is available at the App Store- click here for the KIS Futures App for your Iphone.
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Producers Cooperative Oil Mill, with 64 years of progress through
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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.
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.
A Hot Time in the Old Town Tonight- Grandfield- and OKC- Get Their Records
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Shortly after noon yesteday, the Oklahoma Mesonet site at Grandfield reached 100 degrees for the 87th time in 2011, eclipsing the state's record for number of days at or above 100 degrees. The previous record of 86 days was held by Hollis from the summer of 1956. Grandfield's first triple-digit reading was 101 degrees back on April 18. In fact, since June 1 there have only been five days that Grandfield didn't see a 100-degree temperature.
Altus also added another 100-degree day to their tally to stand at 85
Grandfield's average summer temperature (climatological summer runs
from June 1 through August 31) through August 21 has been 92 degrees, with
an average high temperature of 106 degrees. Since October 1, 2010,
Grandfield has seen 5.9 inches of rainfall, nearly 20 inches below normal.
AND- Oklahoma City also got 2011 etched into the century club record
books yesterday as well. With their 51st 100-degree day today, Oklahoma
City surpasses its previous record of 50 days, set back in the relentless
summer heatwave of 1980.
Oklahoma Crop Weather Update- Oh So Dry!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The latest Oklahoma Crop Weather Update also discussed the triple digit heat across the state stating- "Average high temperatures for the week reached into the upper 90's to lower 100's across Oklahoma. The high for the week was set in the Southeast district reaching 110 degrees in Talihina with the low of 63 degrees reported in Cookson in the East Central district. Rainfall was extremely sporadic across the state with the Panhandle receiving a modest 0.35 inches while the Southwest district received only a trace at 0.05 inches. Wildlife were struggling with the high temperatures and wildfires, which have now burned more than 150,000 acres."
According to the USDA, for our spring-planted crops- "Drought
conditions and soil moisture conditions continued to keep field work at a
reduced pace. Plowing of wheat ground was 85 percent complete and 15
percent of seedbeds were prepared by week's end. Rye ground plowed reached
84 percent complete and seven percent of seedbeds were prepared by week's
end. Plowing of oat ground reached 90 percent complete with 15 percent of
seedbeds prepared. Canola seedbed preparation reached 36 percent by week's
The majority of pasture and range were still rated very poor to poor. Livestock conditions continued to range from fair to poor. Hay continued to be in short supply with more hay being shipped in every day. Supplemental feeding continued as poor pasture and grass conditions prevailed across the state. Cattle liquidation continued as pasture and water supplies continued to decline. Cattle producers have increased supplemental feeding.
Dryland Cotton Almost a Total Failure on Texas High Plains
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~It's now official- more than half of the 4.53 million acres of cotton that the U.S. Department of Agriculture's Farm Service Agency says were planted on the Texas High Plains will not be carried to harvest as the abandonment rate rises to the highest in the history of Texas Plains Cotton Growers.
According to data released by FSA, 2,476,960 acres of dryland cotton were planted and 2,179,071 of that has failed due to the relentless drought. And if you're wondering where that 297,889 acres of dryland cotton is, it probably doesn't exist either; insurance claims are still rolling in and those acreages most likely haven't been added to the official total yet.
The FSA data says that 1,919,307 acres of irrigated cotton were planted in 2011, and so far 227,920 acres have failed, leaving about 1.69 million to potentially be harvested. However, with producers still in the process of deciding when to terminate irrigation, those numbers could still change.
Historically, abandonment in the PCG 41-county service area averages about 15 to 20 percent each year. In 2010, it was just over 4 percent, the lowest in PCG's history. Currently, the abandonment rate stands officially at about 54 percent, the highest since the previous record in 1992 of just more than 53 percent, when rain and hail wiped out much of the Texas High Plains cotton crop.
Do the July Feedlot Placements Really Change Cattle Market?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The most recent USDA Cattle on Feed report confirmed that the drought in the Southern Plains is having significant impacts on the producers directly affected and also on cattle markets broadly. According to Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, feedlot placements in July were 122 percent of last year, well above the average analyst expectations, though not above some estimates.
The result is to push the cattle on feed inventory up to 108 percent of year ago levels. Large placements in Texas and Oklahoma confirm that much of the increase was the result of drought forced movement of cattle.
If taken at face value, this report would appear to be quite bearish but face value is very misleading in this case. The impact of this report must be viewed in term so of both the number of placements and the weight breakdown. 53 percent of the increased placements were cattle that were less than 600 pounds. Though is hard to be sure, some of these cattle were likely significantly below 600 pounds in weight.
These cattle will be on feed longer than if they were placed later in the fall but they will also finish at somewhat lighter weights. The net effect is that the some of these lightweight cattle will finish in the first quarter rather than the second quarter of 2012. The large July placements also included a slight increase in heavy feeders. This is indicative of a rather good summer grazing period for the Osage and Flint Hills regions. These cattle will slightly increase fourth quarter marketings.
Risk Management Decisions are Crucial in Current Cattle Market
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Tom Brink, President and Chief Operations Officer of the cattle ownership arm of Five Rivers Cattle Feeding, recently spoke at the Wheatland Stocker Conference to educate producers on risk management. Five Rivers Cattle Feeding has 12 feedlots and can hold more than 950,000 head of cattle, annually marketing up to 2 million finished cattle.
Brink is familiar with managing risk and says one of the biggest challenges in risk management is that you have to make decisions that very quickly tell whether you were right or wrong. Brink also says when making risk management decisions, it is important to have a sound thought process, have a target price in mind that allows you to lock in some profit and then hedge the cattle or a percentage of the cattle.
Brink also says that producers have to be willing to make decisions in
a fast moving environment so they can take advantage of opportunities in
the market when they are there.
Our Beef Buzz programs are heard on many of our great radio stations across the region that are a part of the Radio Oklahoma Network. They can also be heard on our website- to see a full list of previous Beef Buzz reports, go to www.OklahomaFarmReport.Com and click on the Beef Buzz button on the left hand side of any page. Click on the LINK below for this Beef Buzz featuring Tom Brink.
National Sorghum Producers Elect New Officers and Welcome New Directors
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The National Sorghum Producers board of directors last week elected new officers and appointed three new individuals to the board during its annual August board meeting.
Vice Chairman Terry Swanson of Walsh, Colo., was elected to the chairman's seat, while existing chairman Gerald Simonsen from Ruskin, Neb., was re-elected to the board, taking the past chairman position. J.B. Stewart, an existing director from Keyes, Okla., was elected to serve as vice chairman for the 2012 fiscal year.
Daniel Krienke was reappointed to the board after his previous term expired. Other directors who have reached the end of their term and did not re-run include Brian McCuistion of Corpus Christi, Texas, and Toby Bostwick of Melrose, N.M. Eric Mork of Wichita, Kan., is stepping down from board, as well.
"Brian, Toby and Eric have each made significant contributions to the sorghum industry through their service on this board," said Swanson, the newly elected chairman. "We wish them well and know their leadership will continue to impact to the industry going forward."
2011 Oklahoma Wheat Review on Tap for Today at Ft. Reno
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The annual review of the hard red winter wheat crop in Oklahoma will take place this afternoon at the USDA Grazingland Research Laboratory at Ft. Reno. Officials from USDA, Oklahoma State University, Plains Grains and the Oklahoma Wheat Commission will be looking at the 2011 crop- with the hope to pull some lessons to carry forward to this coming year's crop and beyond.
One presentation that a lot of folks will be interested in hearing will be the weather recap as well as a look forward with Dr. Jeanne Schneider who is a Meteorologist at the USDA facility in Ft. Reno. Dr. Brett Carver is also on the program- and he will be talking about what is in the pipeline when it comes to new HRW wheat varieties.
We will be tweeting from the Wheat Review- as well as from the morning Town Hall Meeting being held by Oklahoma Congressman Frank Lucas in Clinton. The Town Hall with the Chairman of the House Ag Committee is at 9 AM- the Wheat Review is this afternoon at 1 PM- click on the link below for our Twitter account- or go to our website to see our most recent tweets on the lower right hand column of any page.
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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 $12.70 per bushel, while the 2012 New Crop contracts for Canola are now available are $13.04 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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