Derrell Peel Asks the Question: 'Have Cattle and Beef Markets Peaked for the Spring?' 

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

Fed cattle and boxed beef prices have behaved very similar to last year so far in 2013. Choice boxed beef made a dramatic run from the low$180/cwt. range to a peak of $197.49/cwt. on March 13 before falling back under $192/cwt. this past week. In 2012, Choice boxed beef made the first of three runs at the $200/cwt. mark, peaking at $198.80/cwt. in the first week of March before falling back. Fed cattle peaked recently at $128.00/cwt, much as they did one year ago in early March at $130.00/cwt. In contrast, feeder cattle prices have behaved very differently this year compared 2012. Most feeder prices have fallen since the beginning of the year. Last year, feeder prices rose to an all-time peak in early March.   

There are several differences between this year and last year that may change how markets evolve over the next few weeks. First, the latest Cattle on Feed report indicated that feedlot inventories were 93 percent of last year. Additionally, placements in February were 86 percent of year ago levels, which is very low even when adjusted for one less business day this February compared to last year. In the last nine months, feedlot placements have been 8.6 percent below the same period one year ago. Placements for a similar period one year ago were up 2.1 percent from the previous year. This nine month drop in placements is 1.57 million head less than the same period prior to March 2012. Feedlot supplies will continue to tighten in the coming months.   

Feedlots have been impacted by recent winter storms and a new storm this past weekend in the central Plains will result in additional disruptions in fed cattle marketings and production losses. Mexican cattle imports are down by one-third so far this year and are expected to continue well below last year's level. It is just possible that recent improvement in the drought conditions will lead to some heifer retention which would further squeeze feeder cattle supplies.

Click here for more. 

Condition ratings for all small grains and canola in Oklahoma continued to improve slightly last week in the latest USDA Crop Progress and Condition report. Sixty-five percent of the wheat crop was rated mostly good to fair, while 33 percent was in the poor and very poor categories.  Canola was rated mostly fair to poor. Progress of small grains was behind normal for all crops. Wheatjointing was 41 percent complete by Sunday, nine points behind the five-year average.  A small portion of canolawas blooming by the end of the week.  Click here to read Oklahoma's full report.

In Kansas, the winter wheat crop was 5 percent jointed, compared to 33 percent a year ago and 13 percent average. The condition of the crop was rated as 11 percent very poor, 20 percent poor, 40 percent fair, 27 percent good, and 2 percent excellent. Eighty-one percent of the crop had no wind damage, 14 percent had light wind damage, 4 percent had moderate wind damage, and 1 percent had severe wind damage.  Forty-nine percent of range and pasture land was rated in very poor condition.  Click here for the full Kansas report.

Winter wheat in the Blacklands and East Texas continued to do well, however dry land small grains across the rest of the state were stressed by lack of moisture. Irrigated fields in the Plains progressed well, where some producers treated for green bugs.  Fifty-two percent of the wheat crop was listed in fair or good shape, while 47 percent was listed in poor or very poor condition.  Forty-nine percent of range and pasture land was rated in very poor condition.  The full Texas report is available by clicking here.

Farm Policy Facts Releases 'Farm Bill 101' Guide

Farm Policy Facts has released Farm Bill 101, a current and comprehensive guide to the nine titles that make up the Farm Bill.

The resource includes a title-by-title history and summary and is an essential tool for those wishing to better understand this complex package of agriculture, conservation, rural development, research and food assistance policies.

To view the guide, click here.

Farm Policy Facts is a diverse coalition of agricultural organizations formed to raise awareness about the positive role that agriculture plays in our economic recovery, the huge return investments taxpayers see from farm policy and the disproportionate funding cuts that agriculture has already shouldered.

 

Nicole Scott, Staff Director of U.S. House Agriculture Committee, inducted in Oklahoma Conservation Hall of Fame

As conservation leaders from around the country gathered in our nation's capital, those representing the State of Oklahoma were honored to recognize one of their own for her outstanding service to rural America and the continued conservation of our natural resource by inducting Nicole Scott, Majority Staff Director of the U.S. House Agriculture Committee and Waurika Oklahoma native into the Oklahoma Conservation Hall of Fame.

"We are proud to have the chance to place Nicole Scott into the Oklahoma Conservation Hall of Fame," Said Kim Farber, President of the Oklahoma Association of Conservation Districts (OACD). "Few have worked as hard on behalf of rural America as Nicole has and we are so pleased to have this chance to recognize her service."

A graduate of the Law School at the University of Oklahoma, Nicole began her career on Capitol Hill as a Legislative Assistant for then Congressman J.C. Watts. In 1999 she joined the staff of Congressman Frank Lucas, serving as His Deputy Chief of Staff for eight years before moving to the staff of the House Agriculture Committee as Republican Staff Director in 2009. As a member of Mr. Lucas' staff, both in his personal office and on the House Agriculture Committee, Farber said Nicole has always provided outstanding support to Mr. Lucas in his continuing efforts to support the interests of rural Oklahoma and rural America in the Halls of the U.S. Congress.

You can read more by clicking here.

 

Peanuts Post Another Record Year for Production, Pose Challenge for Marketers

More acres and great yields resulted in a lot of peanuts to market from the 2012 crop year. Bob Parker, president and CEO of the National Peanut Board, is responsible for merchandising those peanuts into the marketplace.

"We had an increase in plantings last year. Then, on top of that, we had a record yield, just an absolutely record-shattering yield and have produced about 3.4 million tons of peanuts... compared to a previous record of about 2.8 million tons. So we have a monumental task of moving these peanuts into the market."

Parker says that China has moved into the market because they couldn't get their normal supplies out of India. He said their internal consumption figures have climbed over the years.

Click here to read more or to listen to an audio version of this story.

 

Higher Quality Middle Meats Demand- and Deserve- a Premium Over Average Choice in the Beef Retail Market

T-bones, sirloins, filets and strips-these are the beef cuts referred to as "middle meats." Such steaks make up 12% of the carcass, but represent just under half of its total value.

That and the difference in cooking method lead many to believe it's the only place where beef grades matter.

Not according to experts like longtime market reporter Bruce Longo, of Urner Barry, and the data he tracks.

"There are premiums for higher quality end cuts," he says. "Now, are they to the magnitude or the size that you see in the middle meats? No, you are not going to see the same margins that you would from a branded loin or rib over a Choice one, but there is still a premium."

Click here to read more.

This N That- Cold Weather Injury to Wheat (or not), OYE Heifer and Gilt Update and Canola TV with Ron Sholar

After the very cold temperatures early Monday morning that got down to 18 degrees in and around Tipton in southwest Oklahoma- we traded emails with Dr. Jeff Edwards- our state wheat specialist- who offered us this piece of advice on the potential freeze damage that may be out there after Monday and now Tuesday's early morning lows- "It is a cause for concern; however, March freezes rarely amount to much. At this stage we can lose a few of the large, primary tillers and still compensate with some secondary tillers that would otherwise be sloughed off. It is the April freezes that devastate." 

Saying that- the temperatures into the teens over a lot of western Oklahoma this morning may be a worry- as we get ready to send our email- the lowest overnight temps we have seen in the body of the state this morning have been 14 in Camargo, Erick and Kingfisher- with a lot of the other Mesonet stations seeing temps below 20.  Click here for the overnight lows for this morning and yesterday morning based on Mesonet data.

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The Oklahoma Youth Expo is rapidly coming to a close- the Supreme Champion Gilts have been chosen- the Purebred Supreme Champ was the Hampshire gilt- shown by Ashtyn Stenger of Carnegie FFA, while the Supreme Commercial Gilt was shown on Monday afternoon by Taylor Wolff of Stroud FFA. A set of the top 100 gilts from the show will sell today- details on all of the Champions from Sunday and Monday's show- plus links to the sale are available by clicking here.

Also at the OYE- the Beef Heifer show started yesterday and winds up today- for details of the 11 Champions selected on Monday- click here for more information.

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Our newest edition of Canola TV is now out and available on YouTube and on our website on our Canola TV page. Click here to jump to our story with Dr. Ron Sholar of the Great Plains Canola Association- as he talks about efforts in Washington, as well as THIS THURSDAY's Canola College in Enid.

Canola TV is a service of PCOM, Producers Cooperative Oil Mill.