From: Ron Hays [ron@oklahomafarmreport.ccsend.com] on behalf of Ron Hays [ronphays@cox.net]
Sent: Tuesday, February 28, 2012 5:37 AM
To: Hays, Ron
Subject: Oklahoma's Farm News Update


 
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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.

 

 

Let's Check the Markets! 

 

 

Today's First Look:  

Ron on RON Markets as heard on K101

mornings with cash and futures reviewed- includes where the Cash Cattle market stands, the latest Feeder Cattle Markets Etc.

 

Okla Cash Grain:  

Daily Oklahoma Cash Grain Prices- as reported by the Oklahoma Dept. of Agriculture.

 

Canola Prices:  

Current cash price for Canola is $12.37 per bushel-

2012 New Crop contracts for Canola are now available at $12.66 per bushel- delivered to local participating elevators that are working with PCOM.

 

Futures Wrap:  

Our Daily Market Wrapup from the Radio Oklahoma Network with Ed Richards and Tom Leffler- analyzing the Futures Markets from the previous Day.

 

KCBT Recap: 

Previous Day's Wheat Market Recap- Two Pager from the Kansas City Board of Trade looks at all three U.S. Wheat Futures Exchanges with extra info on Hard Red Winter Wheat and the why of that day's market. 

 

Feeder Cattle Recap:  

The National Daily Feeder & Stocker Cattle Summary- as prepared by USDA.

 

Slaughter Cattle Recap: 

The National Daily Slaughter Cattle Summary- as prepared by the USDA.

 

TCFA Feedlot Recap:  

Finally, here is the Daily Volume and Price Summary from the Texas Cattle Feeders Association.

 

Oklahoma's Latest Farm and Ranch News
 
Your Update from Ron Hays of RON
   Tuesday, February 28, 2012 
Howdy Neighbors! 

Here is your daily Oklahoma farm and ranch news update. 
 
senatorcharlesFeatured Story:
Senator Charles Grassley--the US Needs a Comprehensive BSE Rule Now
 

 

Iowa Senator Chuck Grassley says it's time the United States shows leadership and gives our international trade negotiators a stronger footing for dealing with beef issues. The main stumbling point is the lack of a comprehensive BSE rule for beef imports. Mr. Grassley says that puts our trade negotiators at a disadvantage when negotiating with other countries. The following is an "op-ed " article authored by Senator Grassley and provided to us by the National Cattlemen's Beef Association.


"International trade bolsters job creation here at home and helps foster economic activity in communities across the country. The beef industry plays a big role in the United States' trade portfolio.


"Last year alone, U.S. beef producers exported to countries around the world nearly $5.5 billion worth of product. And, it's generally agreed upon that increasing exports are the key to increasing demand for U.S. beef products.  Unfortunately, our own government is hindering progress in opening new markets for these products.


"The problem lies in a comprehensive BSE rule for beef imports that would make the United States compliant with international trade standards set by the World Organization for Animal Health. The rule has been caught in the federal bureaucracy for several years, starting in 2004 shortly after BSE was discovered in a Canadian cow brought into the United States. Earlier this year the rule finally cleared the Animal and Plant Health Inspection Service, or APHIS as most cattle producers call it, but is now sitting at the Office of Management and Budget waiting for approval.


"This continued inaction is hurting our producers. So I led, along with Senator Ben Nelson of Nebraska, a bipartisan group of senators in pressing the Office of Management and Budget to release a final comprehensive rule as soon as possible and help give U.S. trade negotiators a stronger bargaining position."

You can read Senator Grassley's full article by clicking here.

 

Sponsor Spotlight

  

We are 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. 

 

We are also pleased to have American Farmers & Ranchers Mutual Insurance Company as a regular sponsor of our daily update- click here to go to their AFR website to learn more about their efforts to serve rural America!

 

pricesincentivesPrices, Incentives and Margins in the Beef Industry 

 

It is a fact that cattle and beef prices tend to go up and down together. But, as OSU Extension Livestock Marketing Specialst Derrell Peel explains in the following analysis, it is also a fact that cattle and beef prices do not usually go up and down by the same amount and at the same time. It is this second fact that creates so much of the short term dynamics in cattle and beef markets.

Clearly, the supply pressure resulting from limited feeder cattle supplies continues to grow and has the expected impact of pushing feeder cattle prices up farther and faster than fed cattle prices, which in turn push up boxed beef prices, which then put pressure on retail prices. However, experience shows and economic theory predicts that prices adjust less and more slowly as one approaches the retail level. This always means that margins for the various sectors in the industry get squeezed for a period of time when cattle prices are rising.

The current cattle and beef market is quite unique. Cattle numbers and corresponding beef supply is creating unprecedented pressure for higher cattle and beef prices. This pressure will accelerate over the 2-3 years as anticipated herd rebuilding draws feeder supplies to even lower levels.    At the same time, beef demand, which was significantly impacted negatively during the recession, is recovering but very slowly and remains sensitive to macroeconomic conditions, energy prices and other external factors. This s a recipe for very dramatic margin squeezes for some sectors of the industry. A look at each sector illustrates the general incentives and situation in 2012.
 

Derrell Peel's full analysis on current beef industry trends is available by clicking here.

 

economistseesEconomist Sees Opportunities to Build Herd Size, Demand and Price Simultaneously

 

With current cattle numbers down nationwide, University of Missouri livestock economist Scott Brown sees opportunities for producers on the horizon. But, he says, producers have to be ready to make the most of those opportunities.

Brown says shrinking herds have now spurred prices enough to keep up with rising production costs. This, he says, will mean rising herd sizes in the future. This could lead to another market bubble which, depending on prudent choices, could result in producers exiting the industry or producing products capable of increasing consumer demand for beef.

Brown says the best solution, obviously, is to increase consumer demand. He sees the potential for a ten percent increase not in commodity beef, but in high quality beef. He says the potential expansion could be as high as six million head.

To take advantage of this market opportunity, Brown says producers need to get educated and not be so reliant on production techniques that were viable 20 years ago. He sees the market clearly shifting toward the production of high quality beef.

Click here to see a video in which Scott Brown explains the opportunities he sees.

BoxedBeefBoxed Beef Moves Higher Once Again-Market Recap with Ed Czerwin

 

According to Ed Czerwin of the USDA Market News Office in Amarillo, Texas, wholesale boxed beef prices continued to rise last week with the spot choice up $7.00 from the previous Friday which was the highest level since the week before Thanksgiving 2011.

 

However, the total loads were down considerably last week meaning retailers may be reluctant to buy too far in the future at these current prices. Loads sold dropped nearly 60 percent from almost 1600 to just under 1,000.

 

Export sales were also down on the week with sales of 558 loads, down 60 percent.

 

Middle meats posted a fast-paced finish with retailers purchasing steak products ahead of the grilling season. Ribs and loins finished ten-14 dollars higher, with chucks and rounds three to five dollars higher.


The weekly finished cattle trade was steady in the Southern Plains and steady to a $1.50 lower in the North. The Southern Plains saw $129 cash in light to moderate trade Friday. It was Friday evening before business was done. The average weight from the Texas Panhandle was 1232 pounds, the same as last week.

 

You can hear Ed Czerwin's full recap by clicking here.

 

USDAStudyUSDA Study Shows Cropland Decreasing, Productivity Increasing

 

Is the conversion of farm land to land for housing reducing land available for food and fiber production? A recently released USDA study addresses that issue.

The amount of cropland is decreasing in the United States due to a variety of factors. That's one of the conclusions from the major land uses study by the U.S. Department of Agriculture's Economic Research Service. The study examined data o land use trends from 1945 to 2007.

Cynthia Nickerson with the USDA says, "We see productivity increases that are allowing farmers to grow more on less land over time and the reasons also vary by region. In some regions of the country where you have significant pressures to provide land for housing for example, you'll see declines in crop land. In other regions of the country it could be for other competing demands for land."

To read more about the cropland study or to see a video report, click here.

 

CropConditions
Oklahoma Wheat and Canola Conditions Improve in February- Latest Crop Weather Report Out on Monday Afternoon 

 

The conditions of small grains and canola improved over the past month with a majority now rated in good condition, according to Monday's Oklahoma Crop Weather report issued by the USDA-NASS Oklahoma Field Office. The good condition of the crops made continued grazing possible on a larger portion of the small grain crop than in previous years. However, a warmer than normal winter has allowed wheat to develop ahead of normal, so producers are beginning to pull cattle off of wheat that will be harvested this summer. 

 

Specifically- Conditions of wheat and other fall planted crops were rated mostly good, with 14 percent of wheat and 12 percent of canola rated excellent, respectively. For both crops- the good rating stands at 53%.  Wheat grazed was 45 percent of the crop, 11 points above the five-year average. Kansas wheat crop ratings are not quite as flashy as Oklahoma's numbers- 7% excellent and 45% good- while Texas remains with almost half of their crop rated poor to very poor- 43% rated poor to very poor- and only 31% in the good to excellent category.

 

Pasture and Range: Pasture and range condition ratings improved slightly from the previous month, but two thirds of the state was still rated poor to very poor. Much more rainfall is needed for grass to recover from the extended drought. The availability of pasture and grass will be crucial as producers decide whether or not to graze out small grains.

 

Click here to review the full report from NASS for Oklahoma.  Weekly reports pick up starting next week.

EnvironmentalistEnvironmental Working Group Weighs in on Conservation Title as Senate Ag Committee Holds Hearings Today on the Subject

 

An environmentalist group that has little love for the Commodity Title has issued a new report and web advertising campaign ahead of Tuesday's Senate Agriculture, Nutrition and Forestry Committee hearing on conservation.

The Environmental Working Group's report, Conservation Compliance: A Retrospective...and Look Ahead, supports their view that farmers and taxpayers are subject to a nebulous "compact" that was struck in the 1985 farm bill under which "growers agreed to keep soil from washing away and chemicals out of waterways in return for generous taxpayer support."

The report relies on seven polls taken over 30 years purportedly showing "that a solid majority of farmers believe that bargain is a fair one."

The report's author, conservationist Max Schnepf, says "The conservation compact was a godsend for agricultural and conservation groups and farmers." He also says, "In the 10 years following the 1985 farm bill, farmers did more to curb soil erosion than at any time since the infamous Dust Bowl years of the 1930s." 

 

Click here to read more about EWG's report and to find links to their full report and web ads.

 

ConservationTitleMeanwhile, Hundreds of Organizations Support Conservation Title in the Farm Bill in Advance of Today's Senate Hearing

On Monday, 643 organizations, representing tens of millions Americans, expressed strong support for the Conservation Title of the U.S. Farm Bill in a letter sent to Chairwoman of the Senate Agriculture Committee Debbie Stabenow (D-MI) and Chairman of the House Agriculture Committee Frank Lucas (R-OK), as well as the ranking members of those committees.

The letter urges the committees to provide the greatest possible priority for conservation programs in the funding and structuring of Farm Bill reauthorization.

The letter states that, "In our vast collective experience as landowners, farmers, ranchers, forest managers, agricultural and forest businesses, hunters and anglers, local and state government officials, and non-profit organizations representing a wide range of interests, we can say, without any doubt, that the programs within the Conservation Title work cost-effectively to serve the short and long term interests of the American people." 

Click here for more details from this letter as offered up to Congressional leadership- as conservation supporters make a full court press to minimize budgetary reductions in this part of the 2012 farm bill.  


 

Our thanks to Midwest Farms Shows, PCOM, P & K Equipment/ P & K Wind Energy, Johnston Enterprises, American Farmers & Ranchers, and KIS Futures 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.

Click here to check out WWW.OklahomaFarmReport.Com

 

 

God Bless! You can reach us at the following:

phone: 405-473-6144

 


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