Mood in Feedlot Country ˜Greatly Improved" According to Ross Wilson of TCFA

The Texas Cattle Feeders Association annual meeting is currently underway in Ft. Worth, Texas and I caught up with TCFA CEO Ross Wilson. He said the mood in the industry this year is greatly improved. 

"The rains, the grass that has grown this summer and fall has been a Godsend, obviously, and I think it has restored some faith that maybe we are coming out of this drought even if we're not out of it completely-which we're not. We've got grass, we've got some wheat pasture in some areas that's going to be very helpful and then you add to that the really tremendous corn crop that we're harvesting in this country and the decline in corn prices. So, for the first time in probably 2 ½ years for a lot of our members, they're talking about profitability in Q4 and also some profitability into Q1 and Q2 of next year."

Wilson said that feeders are especially pleased with current corn prices near the $4 mark. With high corn prices over the last several years, he said many feeders drastically modified their rations. That might change with the lower prices, but there is still competition in the marketplace due to the needs of ethanol producers, but there may be a modification in the Renewable Fuels Mandate that could lower that demand.

"We've got to pull that subsidized demand back some. We're at 40 to 45, maybe at some point going to 50, but somewhere in that 45 percent range of the entire corn crop is going into biofuels production. If that's what the market drives, that's great, but get the government out of that driver's seat."

You can catch my full interview with Ross Wilson or read more of this story by clicking here.
 

Midweek rains across much of Oklahoma boosted crop conditions.  As of Sunday, wheat planting was nearly complete at 95 percent with 84 percent of the crop already emerged.  Seventy one percent of the crop was listed in good or excellent condition, with 25 percent in fair shape.

Canola conditions were rated mostly good with nine percent rated excellent.  Ninety-six percent of the state's canola crop had emerged by week's end, just slightly ahead of the same time last year.  (You'll find Oklahoma's Crop Progress report by clicking here.)

In Kansas, wheat planting was 96 percent complete, near last year's mark of 98 percent and ahead of the five-year average of 94 percent.  Eighty-six percent of the crop had emerged.  Fifty-five percent of the crop was listed in good shape, with 36 percent rated fair. 

Corn harvest in Kansas was 87 percent complete, just above the five-year average of 84 percent.  (Click here to read the full Kansas report.)

Winter wheat was emerging in the Texas Panhandle where seeding had been delayed by dry conditions.  As of Sunday, 52 percent of the crop was listed in fair or poor shape, with 41 percent being reported as good or excellent.  (Click here for the Texas Crop Progress report.)

Combines Rolling Hard Across the Corn Belt

Thanks to dry weather and hard-working farmers, nearly three quarters of the nation's corn crop has been harvested, the U.S. Department of Agriculture reported, with a harvest that has caught up and outpaced the five-year average.

"We've had some good weather for harvesting," said NCGA President Martin Barbre. "Even though some areas are still challenged by moisture, we're getting some very optimistic reports about quality and yield. With another two good weeks of harvest weather, the bountiful crop of 2013 will for the most part be in the bin!"

As of Sunday, 73 percent of the crop has been harvested in the 18 states that produce the bulk of the nation's field corn, with some states making great progress in the past week. In Iowa, the state that produces the most corn, a full one-fifth of the corn crop was harvested in the last seven days as the percent harvested jumped from 55 to 75 percent.

Click here for more and a link to the full USDA Crop Progress report.

 

President Pushes Proposed Food Stamp Increase

The following is an editorial by Presidential advisors Valerie Jarrett & Cecilia Muñoz:

On November 1, millions of Americans will feel the effects of an automatic cut to food purchasing assistance provided through the Supplemental Nutrition Assistance Program (SNAP). This is assistance that serves to help families get back on their feet, and children to receive the nourishment they need to stay healthy and competitive in the classroom. For many families, these cuts are devastating, and couldn't come at a worse time as they begin to regain their footing following the worst recession since the Great Depression.

That is why President Obama has proposed an extension of pre-November funding levels in the 2014 budget. As the economy continues to grow and recover, SNAP is proven to effectively combat hunger and food insecurity while giving millions of hardworking Americans the temporary boost they need during tough times.

You can read more of this editorial by clicking here.

Thinking Outside of the Traditional Stocker Box

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow-Calf Newsletter:

Oklahoma winter wheat is mostly emerged and more than two-thirds is rated good to excellent condition. However, from a forage standpoint, most of the wheat is delayed in development and will need another two to three weeks before stocker turnout. This suggests that the winter grazing period for dual-purpose wheat is likely to be limited to no more than 90 to 95 days. Stocker producers should evaluate carefully what stocker alternatives will work the best in a short winter grazing season.   

Feeder cattle prices have made impressive gains in the past four months. Through the summer and early fall, heavy feeder prices increased proportionately more than calves based on strong feedlot demand driven by dropping corn prices. In the past month, calf prices in Oklahoma have increased faster than heavy feeders, with calf prices up 5 to 10 percent while heavy feeder prices have increased 3 to 4 percent. This reflects the strong preference among Oklahoma stocker producers for light stockers, typically less than 550 pounds.   

The result is a sharp break in feeder cattle prices in the most recent combined auction prices for Oklahoma, with prices very high and decreasing rapidly at weights up 575 pounds, and decreasing much more slowly at weights above 575 pounds.  

Click here to read more of Derrell's analysis.

All Cost, No Benefit: Duplicative Regulations Would Cost Taxpayers $474 Million

CropLife America (CLA) expressed concern at the findings of a new report that estimates duplicative regulations on crop protection products could cost taxpayers an additional $474 million over the next 10 years, should the existing broken system of endangered species consultations continue for crop protection products.

A new report from Summit Consulting, LLC (Summit) and commissioned by CLA estimates the cost to taxpayers of continuing the duplicative consultation process. Amendments to the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) in 1996 and 2007 established a 15-year cycle of pesticide registration review to ensure that all registered products meet current regulatory requirements; the first cycle must be completed by 2022. All EPA pesticide registration actions are further subject to Section 7 of the Endangered Species Act (ESA), which requires that EPA consult with the Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) if the pesticide use "may affect" endangered species. The Services conduct their own independent risk analysis, despite the fact that EPA already rigorously reviews a product's potential impacts on the environment in accordance with FIFRA, including possible effects on threatened or endangered species.

The report from Summit documents the review process as currently conducted through the individual agencies. It includes a review of the budgetary capacity of the agencies and a breakdown of estimated costs over time. 

You can read the full story on our webpage by clicking here.

Happening Today- USMEF, Lucas Town Halls and AFR Speech Contests

We are into our second day of coverage from the Texas Cattle Feeders Association annual meeting- and this morning, they feature in their second general session the market outlook of Cattlefax as presented by Randy Blach- looking forward to that!.  At the same time in the same hotel here in Ft. Worth- the USMEF is kicking off their Fall Strategic Planning Conference that runs through Thursday- we will be covering their kickoff news briefing later this morning featuring Phil Seng- their President and CEO.

Coming up this week- the Chairman of the House Ag Committee, Oklahoma Congressman Frank Lucas, is away from the craziness of Washington for a few days- and he has five Town Hall meetings planned in his district- two this afternoon and three on Thursday.  The two this afternoon will be in Clinton and Weatherford, while the three Thursday are happening in Anadarko, Watonga and Kingfisher.  Click here to check exact times and locations.

Finally, this evening marks the start of the AFR fall speech contests that will be happening across the state and will culminate in the State Speech Finals Saturday, December 14 in Stillwater. The first of the District Speech contests will happen this afternoon in Sapulpa- click here for details of all of the district locations where   4-H and FFA youth compete for scholarships that will be presented by the general farm organization. You can also contacty Laici Wedel at 405-218-5557 if you have questions about this annual ritual of the fall season.