The U.S. Department of Agriculture (USDA) and U.S. Department of Health and Human Services (HHS) Thursday released their final 2015 Dietary Guidelines for Americans. As one of the national media outlets headlined the result- "Government Says Watch Your Sugar Intake- Gives Met a Pass."  The guidelines gained support from the American Farm Bureau Federation, National Cattlemen's Beef Association (NCBA), Texas and Southwestern Cattle Raisers Association (TSCRA) as well as from the dairy industry, but drew scrutiny from The Sugar Association.


"Dairy and lean meats remain key sources of important nutrients in a healthy, balanced diet," AFBF President Bob Stallman.  "The recommendations for both dairy and protein were unchanged but include guidance in making well-balanced choices for a healthy lifestyle. These new guidelines give helpful direction while keeping some flexibility for the foods we all enjoy."  Click here to read more from AFBF.


"U.S. cattle producers work each and every day to provide safe, wholesome and nutritious beef for consumers around the world," said NCBA President Philip Ellis, a Wyoming rancher.  "Since the first Dietary Guidelines were released in 1980, external fat on beef has decreased 81 percent and 65 percent of the most popular beef cuts sold at retail are lean, a prime example of beef producers responding to consumers' nutritional preferences."  Click or tap here to read more from NCBA.

"We are pleased the final Dietary Guidelines include lean beef and recognize its importance, along with fruits and vegetables, in a healthy diet," said TSCRA President Pete Bonds. "Lean beef is a healthy protein source, and we encourage consumers to incorporate these final guidelines into their daily diets."  Click or tap here to read more from TSCRA.


In a joint statement from four dairy organizations- "As America strives to create a culture of wellness, the 2015 DGA embraces flexibility to help people build and enjoy healthy eating patterns that will nourish them physically, while also nourishing cultural and personal connections. Regardless of one's path to a healthy diet, three daily servings of low-fat or fat-free dairy foods like milk, cheese or yogurt can play an important role in healthy eating and well-being, from childhood through adulthood."  Click here to read more from the National Dairy Council, National Milk Producers Federation, International Dairy Foods Association and MilkPEP.

However- the Sugar Industry expressed disappointment over the Dietary Guidelines as they relate to sugar intake- stating "We maintain these 'added sugars' recommendations will not withstand the scrutiny of a quality, impartial evaluation of the full body of scientific evidence. As with past examples of dietary guidance not based on strong scientific evidence, such as eggs, the 'added sugars' guidance will eventually be reversed. The lack of scientific rigor in this process has and will continue to result in consumer apathy, distrust and confusion."  Click here to read more from The Sugar Association.

With the start of a new year, the cattle markets have made a big transition. From high cattle prices in late 2014 to a severe drop in the second half of 2015.   Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel said the markets showed recovery at the end of the year and this set the stage going into 2016.


"We've made most of that adjustment, so I don't see that same kind of adjustment happening," Peel said. "At this point I think we move forward now, you know with the supply and demand conditions that we see out there."


Beef herd expansion was aggressive in 2015. The annual U.S. cattle inventory numbers from the U.S. Department of Agriculture will be released on Friday, January 29. Those numbers will confirm just how aggressive herd expansion was this past year. Peel anticipates another strong year of herd expansion in 2016 because of volatility in the cattle market in late 2015. He said that may have tempered expectations, so expansion may be slower than expected. He's looking for more herd expansion this year in western Oklahoma and west Texas.

Derrell's comments that will be a part of SUNUP this weekend are the basis of this Beef Buzz. Click or tap here to listen to today's Beef Buzz.

The Obama administration Thursday announced that South Africa will open its market to most U.S. exports of poultry, pork and beef and their products.  The agreement was reached following intense U.S. government engagement with South African officials over the last year. Only a limited number of U.S. poultry and meat products have been exported to South Africa in recent years, due to unwarranted sanitary requirements by the South African authorities, with most poultry exports blocked for the last 15 years. With this renewed access for U.S. red meat and poultry products, U.S. exports to South Africa could generate $75 million of shipments annually.  The move has been praised by the National Pork Producers Council and the U.S. chicken industry.

"This is good news for American farmers, ranchers and poultry, pork and beef companies," said U.S. Ag Secretary Tom Vilsack. "We welcome this move by South Africa and will continue our efforts to break down barriers and expand access for high-quality, safe and wholesome U.S. food and agricultural products around the world. With this agreement, South Africa reaffirms the scientific soundness and integrity of the U.S. system for ensuring animal health and food safety, and this will result in high-quality U.S. meat and poultry being available for South African consumers.  Click or tap here to read more from Secretary Vilsack.

"NPPC applauds President Obama and our trade officials for bringing home the bacon for U.S. pork producers," said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. "We have been on the outside looking in as our competitors from Brazil, Canada and the European Union sell pork to South Africa. That country banned our pork using non-science-based restrictions that don't pass the red face test. Now that the barriers are falling, we have gained the opportunity to sell safe, high-quality and affordable U.S. pork to over 50 million new consumers."  Click or tap here to read more from NPPC.

"We're pleased that this process has reached a successful conclusion and that U.S. chicken can again be shipped to South Africa," said Jim Sumner, president of the USA Poultry & Egg Export Council (USAPEEC) and National Chicken Council (NCC) President Mike Brown. USAPEEC and NCC negotiated an agreement with the South African Poultry Association (SAPA) to end the South African chicken embargo in Paris last June, which required the support and approval of the respective governments.

Click or tap here to read more.

In a formal request sent to the U.S. Senate Committee on the Judiciary (Committee), R-CALF USA seeks an investigation into potential antitrust and anticompetitive conduct in the U.S. cattle and beef markets. The group is asking the Committee to investigate 13 specific issues including the cause for the dramatic, unprecedented collapse of U.S. cattle prices in 2015; whether there are structural problems in the U.S. cattle market that contributed to the price collapse in 2015; and whether dominant meatpackers or other major market participants engaged in unlawful conduct that adversely influenced the cattle futures market and cash cattle market in 2015.


In its highly detailed and well-documented request, the group provides evidence indicating that antitrust and anticompetitive conduct by dominant meatpackers and certain traders in the cattle futures market in 2015 caused a severe anomaly in U.S. cattle markets. That anomaly, according to the group, caused an "unprecedented extraction of equity from the U.S. live cattle industry" and harmed consumers as well.


As background for the Committee, the group explained that extremely tight cattle supplies and growing beef demand were among market fundamentals cited by analysts to support projections for strong cattle prices throughout 2015 and for up to three years beyond. During the first half of 2015, those projections were spot-on, the group stated.


"But then something went awry," The group wrote adding that in the latter part of 2015, "cattle prices collapsed farther and faster than during any time in history and the unprecedented volatility in the cattle futures market rendered it useless for price discovery purposes."

Click or tap here to read more about R-CALF's documentation of extreme cattle market volatility in 2015.

Grain markets showed little change from Thanksgiving to the start of the New Year. That's according to Oklahoma State University Grain Marketing Specialist Kim Anderson. On this weekend's edition of SUNUP, he talks about how wheat prices moved higher in mid-December before falling. On the first trading day of 2016 on Monday, January fourth, he said prices fell 15 cents and have broken some important support levels.


In looking at the 2016 harvest prices, Anderson anticipates prices around $4.75 for the Kansas City wheat July futures contracts. The basis levels in Oklahoma for July delivery are at a minus 40 cents to minus 50 cents. He said that equates to a harvest forward contract price around $4.30, but he's optimistic cash prices will be closer to $4.50. Anderson forecasts a harvest price range of $3.50 to $5.50. For wheat prices to drop to $3.50 will take a large wheat crop, like a U.S. winter wheat crop of 1.4 billion bushels. Anderson said if the U.S. produces 1.5 billion bushels or more that will put pressure on wheat prices. The U.S. all wheat crop averages around 2.1 billion bushels. He said if the U.S. produces 2.2 - 2.3 billion bushels that will also put pressure on prices. For wheat prices to move higher to $5.50, there will have to be a smaller U.S. wheat crop. Anderson said that would require all winter wheat production to be around 1.2 billion bushels and all wheat production at 1.8 - 1.9 billion bushels. In having a large crop and low protein, he said that will also raise basis levels. In looking at global factors, Anderson said the world wheat crop will have to be 26.7 billion bushels or less for prices to get to $5.50. He said production has to be lower than consumption to lower ending stocks.


In looking at break-even costs, Anderson said their enterprise budget estimates out-of-pocket costs of production are ranging from $4.75 - $5.50 a bushel. He recommends farmers wait to lock in prices to see where prices go the next few months. Anderson said the market price can't stay below the cost of production over a long period of time or farmers won't produce the crop. 


SUNUP host Lyndall Stout interviews Anderson. Click or tap here to listen to the full interview and find the SUNUP show lineup.   

When it comes to the Presidential campaign of 2016- DO NOT expect agricultural issues to be discussed often after the first of February- once the Iowa Caucus is complete. But- right now, as the candidates chase one another around Iowa in a bid to get a few more votes in this important farm state, several ag related issues are popping up- especially biofuels and the status of the Renewable Fuel Standard.

Senator Ted Cruz has a record on the RFS- as he has authored bills in the Senate that would repeal the RFS.  That has not set well with one pro ethanol group- they call themselves America's Renewable Future- or ARF. 

Now remember where Senator Cruz comes from- Texas.  His stance on the RFS is very compatible with what folks in the oil patch might say- and is certainly what the cattle industry believes- ethanol is fine- but the government should not be picking winners and losers- and the contention is that is what the RFS does.

We mentioned a few days ago details of a report card that this group released- and they were very upset with Senators Cruz and Paul over their opposition to the RFS.

Well- apparently Senator Cruz has rethought the issue- now he is saying he is for ethanol- still does not like the government mandate- but signaled at one of his bus stops that he is willing to allow RFS stick around through it's expiration of 2022.

ARF has a story on their website about what they call an improvement in the stance of Senator Cruz- click here to check it out.

We feature his comments briefly in our morning farm news as heard on the Radio Oklahoma Ag Network- and linked here.

We have a more in depth version of that story on our APP- go to the News tab of the app and check out our morning farm and ranch news and markets- There are links on the left hand column of this email where you can go and download the App if you don't have it on your smart phone or tablet.