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Check the Markets!
mornings with cash and futures reviewed- includes where
the Cash Cattle market stands, the latest Feeder Cattle Markets Etc.
Each afternoon we are posting a recap of that day's
markets as analyzed by Justin
Lewis of KIS futures- click
here for the report posted yesterday afternoon around 3:30 PM.
Oklahoma Farm Report Team!!!!
Senior Editor and Writer
Calendar and Template Manager
Markets and Production
Oklahoma's Latest Farm and Ranch News
Your Update from Ron Hays of RON
and Beef Prices Jump Higher From Early May Lows- Derrell Peel
Considers Possible Whys
On a weekly basis, Dr.
Derrell Peel, Oklahoma State
University Extension Livestock Marketing Specialist, offers his
economic analysis of the beef cattle industry. This analysis is a
part of the weekly series known as the "Cow Calf Corner"
published electronically by Dr. Peel and Dr. Glenn Selk. This week,
Dr. Peel looks at the uptick in cattle prices in recent days.
"Beef and cattle prices bounced back sharply in the past ten
days. Choice boxed beef ended last week at $218.56/cwt., up
$14.82cwt. from the recent low on May 6. Wholesale prices were
generally higher last week for end meats (round and chuck) as well as
middle meats (rib and loin). Five-market fed cattle prices ended the
week of May 13 at $132.64/cwt., up $14.61/cwt. from the May 4 low.
Auction prices for feeder cattle in Oklahoma were mostly up four to
six percent in the past one to two weeks.
"Price improvement has occurred despite continuing year over
year increases in beef production. For the week ending May 14,
estimated beef production was up 6.1 percent year over year,
contributing to a ten week average increase of 5.3 percent compared
to the same period last year. Cattle slaughter was
estimated at 601 thousand head last week, up 5.8 percent year over
year. Average cattle slaughter has been 4.1 percent higher than last
year for the last ten weeks. Carcass weights are still up year over
year but have decreased dramatically in recent weeks. Average steer
carcass weights were 868 pounds last week, down 26 pounds from early
March and just 3 pounds heavier than the same period last year."
here to read Dr. Peel's full cattle market analysis.
And- related to
Derrell's take on the markets is the Monday afternoon
report from Ed
Czerwein of the Amarillo USDA Market News office on
the strength in the Boxed Beef Trade. The spot Cutout Choice Value
jumped over $14 per hundredweight- but the comprehensive Boxed Beef
Trade- which includes formula sales- barely moved- up just fourteen
cents per hundred. Czerwein explains the significant difference
in his weekly update- which is available
sponsor of our daily email is the Oklahoma Farm Bureau - a
grassroots organization that has for its Mission Statement- Improving
the Lives of Rural Oklahomans." Farm Bureau, as the
state's largest general farm organization, is active at the State
Capitol fighting for the best interests of its members and working
with other groups to make certain that the interests of rural
Oklahoma are protected.
Click here for their
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you to be a part of Farm Bureau.
Stays Mostly Ahead of Five Year Average- and Wheat Crop in Southern
Plains Nears Harvest
The USDA Crop Progress report from Monday afternoon showed 11 and 13
percentage points worth of planting of the corn and soybean crops
nationally- as farmers continued to run the planters in and around
rain- and in the northern states- after a couple of frosty mornings-
very unusual for mid May.
Three fourths of the US Corn Crop is now planted- 36% of the Soybeans
are in the ground, 40% of the cotton is planted and one third of the
grain sorghum crop is now in.
here for the complete Crop Progress Report from Uncle Sam- which
also shows the national Pasture and Range conditions improving
another two percentage points in the latest week- now at 63% good to
excellent. About the only problems this spring with pasture ratings
is in New England- states like Vermont and Maine.
For Oklahoma- the latest Crop Weather Report shows a lot more
moisture in the subsoil profile compared to a year ago- last May we
had received a lot of rain- but still had forty five percent of the
subsoil rated short to very short of moisture- this week- it's 21%
short to very short.
Oklahoma report shows the winter wheat and canola crops
continuing in really good shape- 65% and 68% respectively in good to
excellent condition- and nearing harvest.
For the spring planted crops- corn, sorghum, cotton, peanuts and
watermelons are behind a year ago in planting progress- while
soybeans are slightly ahead of the 2015 pace.
As for our neighbors- click on the name of the state to check their
latest Crop Weather or Crop Progress Updates- as of early this
morning- Kansas was still not up in cyberspace- but the link should
work once they get it in place:
When it Comes to Nitrogen,
OSU's Brian Arnall Says "Get it in the Ground"
Brian Arnall, Nutrients for Life Foundation
Professorship of Soil & Food Crop Nutrition at OSU, says
rethinking nitrogen management could mean a big difference in results
for wheat farmers. During the Lahoma Wheat Field Day last week,
Arnall discussed the need to drill nitrogen into the ground to avoid
Whether it's urea, UAN or other dry sources, Arnall says getting that
nitrogen into the ground will make it more efficient.
"When urea sits on the surface, it's acted upon by the enzyme
urease and the first step in that process is to go to ammonia,"
he says. "And then if there's any water present, it goes to
ammonium, which is a good soild form. If it dries with that ammonium
attaching to soil, it can be lost through the air."
Arnall says Oklahoma fall and spring days are the perfect storms for
"The warmer it is, the more humid it is, the more of that urea
prill is going to melt in the morning with the dew, dry off and the
wind is going to drive off the ammonia," he says. "We can
see in spring applications and in late fall applications when it's
warm and we have good moisture that those losses can be higher."
I caught up with Dr. Arnall during the Lahoma Wheat
Field Day this past Friday. Click
here to listen to our full interview - including information
about the N-Rich strips.
Better Positioned for Future - Commentary by the Noble
Foundation's Dan Childs
are a few agricultural producers still active who remember the 1980s
and the difficult times that persisted throughout much of the decade.
For those unfamiliar with the stress many producers experienced
during that time, a reflection back provides a comparison and may
provide insight into what to expect for the next few years.
Although the 1970s provided wheat farmers and cattle producers with
some very high prices, they were hardly noticed because inflation
spiraled into double digits. In 1973, the gasoline price doubled from
25 cents per gallon to 50 cents per gallon. Lines formed at gas
stations with drivers only being able to purchase fuel based on even
or odd days corresponding with the last number of their vehicle tag.
Farm inputs rapidly increased with tractors and machinery leading the
way. The recipe for success was to buy as much as one could today
because it would be worth more tomorrow and could be paid back with
cheaper dollars. Many producers started leveraging their balance
sheets in an effort to control as many assets as possible. For much
of the 1970s, the inflation rate was higher than the interest rate.
Inflation finally peaked in 1980 at 14.5 percent; interest rates
peaked in 1981 at 17.5 percent. When the 1980s began, the average debt-to-asset
ratio of all producers was estimated by the United States Department
of Agriculture (USDA) to be above 40 percent. Banks had obligated
themselves with interest rates on certificates of deposit above 15
percent. As interest rates stayed elevated and the inflation rate
declined to 3.5 percent by the late 1980s, the perfect storm resulted
in 357 bank failures in 1985 and more than 300,000 farm bankruptcies
in 1989. Winding down double digit inflation was not a pretty sight.
Fast forward roughly 35 years to today when enterprise budgets and
cash flow projections offer little to nonexistent profits. Is
production agriculture destined for a repeat of the 1980s? Although
the next few years will not be easy for many producers, especially
compared to last few years of record profits enjoyed by all sectors
of agriculture at various times, in general producers are in much
better financial condition today."
We are happy to
have the Oklahoma
Cattlemen's Association as a part of our great lineup
of email sponsors. They do a tremendous job of representing cattle
producers at the state capitol as well as in our nation's capitol.
They seek to educate OCA members on the latest production techniques
for maximum profitability and to communicate with the public on
issues of importance to the beef industry. Click here for
their website to learn more about the OCA.
Zoetis, Angus Genetics
Inc. Announce World's Largest Beef Cattle Genomic Calibration for
Zoetis and Angus Genetics Inc. (AGI) are pleased to
announce completion of the world's largest and most comprehensive
genomic calibration for beef cattle and associated integration into
genomic-enhanced expected progeny differences (GE-EPDs). With this
new calibration, Angus breeders and commercial users of Angus
genetics can now make even more dependable and informed decisions
using DNA test results incorporated into weekly genetic evaluations.
With genotypes for more than 100,000 animals and the updated training
encompassing more than 15 maternal, growth, efficiency and carcass
traits, this calibration supports every Angus dollar index.
"The value of GE-EPDs powered by HD/i50K continues to
grow," said Kent
Andersen, Zoetis Director of Genetic Technical
Services, U.S. Cattle-Equine. "With this latest calibration,
we're able to offer a broader variation for traits related to
maternal efficiency, including heifer pregnancy, calving ease and
mature cow weight. This increased level of genetic variation will
enable our customers to benefit from more accurate GE-EPDs for young
Angus animals, while supporting more dependable selection, mating and
This calibration supports all recognized genomic testing options for
registered Angus seedstock. From Zoetis, this includes HD 50K and
i50K. This is the fifth calibration executed by AGI and Zoetis. HD
50K and i50K tests include parentage verification and enable sire
assignments for commercial Angus users of GeneMax Focus and GeneMax
Advantage, as the markers used in those tests are also included in
the HD 50K and i50K genotyping platforms.
more about this latest genomic calibration for GE-EPDs.
to Have the Latest Energy News Delivered to Your Inbox Daily?
broadcast journalist Jerry
Bohnen has spent years learning and understanding how
to cover the energy business here in the southern plains- Click here to
subscribe to his daily update of top Energy News.
Cattle Marketing Made
Easier with Online Decision Support Tools - Glynn Tonsor Explains
Cattle producers are gaining access to some great tools
and mobile apps that help take the guesswork out of marketing
livestock, and the backgrounder and stocker margin calculator found
at BeefBasis.com is no
associate professor of agricultural economics at K-State, helped
develop the resource and says cow-calf operators considering
backgrounding and commercial stockers looking to buy calves will
especially benefit from the online tool.
"Let's say you're entertaining purchasing a 550 lb calf in the
middle of September, and you're thinking about putting 200 lbs. on
him between then and the middle of February - that's about a 1.3 lb
average daily gain," he says. "The value of gain in that
story right now is projected to be $61/cwt, so if your cost of gain
is $60 or higher, that's probably not something that looks very
Tonsor says the key reason for the low value of gain projections is
the notable pull down between the September feeder cattle contract
and the deferred.
"If instead of making a September purchase, you wait until the
middle of November and you buy a 600 lb calf and you only put 100 lb
on, that value of gain would be $104," he says. "Simply
given, it sounds like two extremes, but the market is actually
encouraging people to plan to purchase later, maybe heavier and maybe
put lighter weights on."
Because the markets are changing frequently, Tonsor says it's
important for producers to check their personal numbers using the
Value of Gain calculator on BeefBasis.com.
to Tonsor talk more about the tools available
at BeefBasis.com - and the drop in mama cow returns -
during the latest Beef Buzz.
This N That-
FedCattleExchange.Com Goes Live, More Rain and Feral Hog Control Bill
Close to Being Fixed
Next Wednesday, a new way to buy and sell finished cattle out of the
feedlots will be officially kicked off. FedCattleExchange.Com
went live with their website yesterday at midday- and according to Danny Jones,
President of Superior Livestock, this website will be the platform to
discover a cash market for the segment of the beef industry that is
looking for fresh ways to establish the value of cattle ready for the
Danny will be our guest the next couple of days on Beef Buzz- and we
will be featuring those comments tomorrow and Thursday here in the
email- they are lining up the first sale now- and that first sale is
set to happen next Wednesday, May 25th at 10:00 AM Central time.
Rainfall over the last couple of days can be seen in real time from
the Oklahoma mesonet by clicking
here- Nowata is leading the pack as of this morning with 3.7
inches of rain- and the two day map shows over three inches of rain
at multiple sites in the northeastern corner of the state- and two
inches of rain or more from Alva eastward in top tier of counties.
More rain and cool temps are in the mix for a few more days- then
back to the 80s by next week. Jed Castles with News9 provides us this
handy dandy graphic:
We have only this week and next for the Oklahoma State Legislature to
figure out the tremendous budget challenges for our state- and in and
around that and other end of session efforts- lawmakers and staffers
were working to undelete the word "fish" from SB
1142- a measure that will okay 24/7 hunting of wild hogs by a
landowner on his land.
The Governor did agree to return the bill to be fixed- and here's
the complete history of the bill that shows a flurry of activity
yesterday to get the word "fish" back in the bill- and it
appears it is almost ready to be RESENT to Governor Fallin- likely to
be on her desk by tomorrow- there seems to be strong support for the
measure- so those supportive of the bill- OCA and Farm Bureau two of
the groups I have talked about it with- are hopeful that it will be
signed by Governor Fallin.
thanks to Midwest Farms Shows, P & K Equipment,
& Ranchers, Stillwater Milling Company, Oklahoma
AgCredit, the Oklahoma Cattlemens
Association, Pioneer Cellular,
and KIS Futures for their support of our daily Farm News Update. For
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