|
|
News
Ethanol Debate Gains Steam
“We need to assess the corn-based ethanol mandate and
its unintended effects on food prices for American consumers,” says
Sen. Kay Bailey Hutchison (R-TX). “When we passed the ethanol mandate,
the Environmental Protection Agency (EPA) was given the authority to
waive the mandate or make necessary adjustments to prevent collateral
damage. With the price of everyday meat, chicken, bread and eggs rapidly
increasing, we’re asking EPA to use the flexibility that Congress gave
them because so many families cannot afford the increasing prices at the
grocery store.”
Last Friday, Hutchison, Chairman of the Republican Policy Committee, and
Sen. John McCain (R-AZ) sent a letter (also signed by 22 other senators)
to EPA Administrator Stephen Johnson about the status of regulations for
states applying for an ethanol mandate waiver and urged EPA to consider
food-inflation concerns.
“Every time hardworking American families buy groceries, they feel
the financial sting of misguided federal policies mandating that
taxpayers support ethanol,” McCain says. “It isn’t a surprise that
food prices are rising when more than 25% of the corn grown today is
taken out of the food supply and instead used for subsidized ethanol
production.
“This subsidized program – paid for with taxpayer dollars – has
contributed to pain at the cash register, at the dining room table, and
a devastating food crisis throughout the world. We need to put an end to
flawed government policies that distort the markets, raise food prices
artificially, and pit producers against consumers. We must call on the
EPA to exercise its authority to not exacerbate this already bad
situation,” McCain said.
A week earlier, Gov. Rick Perry of Texas asked the federal government
for a 50% waiver from the federal renewable fuel standard (RFS) mandate
for ethanol produced from grain. He pointed out corn prices rose 138%
percent globally over the last three years and global food prices
increased 83% over the same time period. With the implementation of the
new RFS mandate, some estimates predict corn prices will rise to $8/bu.
for the 2008 crop.
For perspective, the Energy Independence and Security Act of 2007
increased the ethanol mandate to 15 billion gals. of corn and 1 billion
gallons of bio-diesel by 2015, and 36 billion gals. by 2022. Congress
gave the EPA the authority to waive the mandates or structure them
differently if the mandate resulted in adverse unintended effects.
"We appreciate the good intentions behind the push for renewable fuels.
In fact, we’re diversifying our state’s energy portfolio at a rapid
rate, but this misguided mandate is significantly affecting Texans’
family food bill," Perry said. "There are multiple factors contributing
to our skyrocketing grocery prices, but a waiver of RFS levels is the
best, quickest way to reduce those costs before permanent damage is
done."
Hutchison pointed out that according to the “World Agricultural Supply
and Demand” report, U.S. wheat stocks are at 60-year lows and soybean
stocks at their lowest levels since 2003. Corn ending stocks relative to
expected use, even with last year’s record crop, are below the
established 25-year average. Since February 2006, the price of corn,
wheat and soybeans has increased by more than 200%. In 2007, ethanol
production reached 6.5 billion gals. and the federal mandate for
production this year is 9 billion gals.
Painting with a broader brush, a recent report from the USDA Economic
Research Service (ERS) concludes: “World market prices for major food
commodities such as grains and vegetable oils have risen sharply to
historic highs of more than 60% above levels just two years ago. Many
factors have contributed to the run-up in food commodity prices.
“Some factors reflect trends of slower growth in production and more
rapid growth in demand that have contributed to a tightening of world
balances of grains and oilseeds over the last decade. Recent factors
that have further tightened world markets include increased global
demand for bio-fuels, feedstocks and adverse weather conditions in 2006
and 2007 in some major grain and oilseed-producing areas.
“Other factors that have added to global food commodity price
inflation include the declining value of the U.S. dollar, rising energy
prices, increasing ag costs of production, growing foreign exchange
holdings by major food-importing countries, and policies adopted
recently by some exporting and importing countries to mitigate their own
food-price inflation.”
Stocker Management
Patch Burning Works
Patch burning – burning portions of the pasture each
year rather than an entire pasture – is proving able to maintain
cattle weight gain, while also enhancing wildlife habitat.
According to University of Nebraska researchers, “The system uses fire
instead of cross-fences to shift livestock grazing around a pasture.
Because portions of the pasture are rested each year while others are
grazed more intensively, there is no need to move cows to a different
pasture to build up fuel for the next year’s fire.”
The researchers explain, “Patch-burn grazing is a system that
encourages intensive grazing on a portion of a pasture each year while
resting the remainder of the pasture. Each year, a portion of the
pasture is burned (the burn patch), which attracts grazing cattle to the
lush re-growth of grass following the fire. Cattle graze the burned
portion of the pasture until a new portion is burned, usually the
following year.
“In times of hot dry weather or cool wet weather, when grass growth
slows, cattle will spill over into the previous year’s burn and graze
lightly until the current year’s burn catches up again. The extent to
which the cattle spill over into the previous year’s burn is
determined by stocking rate; they will spill over more under higher
stocking rates, and less under lower stocking rates.
“The location of the next burn is determined by the amount of fuel
available for the fire. That fuel includes dead grass, either standing
or lying on the ground. After the fire, cattle graze the burned patch
for the entire season, essentially overgrazing that portion of the
pasture.
“However, as soon as the next portion of the pasture is burned, the
cattle will shift their grazing pressure to the new burn. Then, over the
next several years (until the next burn), the recently grazed area will
rest and recover its vigor.”
One of the unique features of patch-burn grazing, the researchers say,
is cattle select their forage differently than in other grazing systems.
In patch-burn grazing, the vast majority of the forage eaten by the
cattle is grass, excluding many of the legumes and other forbs
(broadleaved plants) that are normally eaten.
“Patch-burn grazing ensures that cattle can have complete free choice
of forages, because their movement isn’t restricted within the
pasture, and if their first choice isn’t available in the burned
patch, they can go outside that area to find what they want. This is a
difference between patch-burn grazing and traditional rotational
systems, where cattle are restricted to a portion of a pasture by
fencing, and it helps cattle maximize the quality of their forage intake
at all times,” the researchers report.
Based on Oklahoma State University research conducted with stocker
cattle, there’s no difference in livestock performance between those
grazing in patch-burn grazing systems and those in other common
livestock systems.
For more details and the complete study, see digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1001&context=grassland_newsletters.
Stocker News
Meat Organizations Change View On
Downers
When BSE first cropped up in the U.S., and everybody and
their brother was coming up with new regulations, the American Meat
Institute (AMI) and other industry organizations argued against a
wholesale prohibition of non-ambulatory “downer” cattle being used
for food.
A few years and a couple of massive beef recalls later, AMI, the
National Meat Association and the National Milk Producers Federation
filed a Citizen Petition with USDA’s Food Safety and Inspection
Service requesting that the agency amend the rules so that
non-ambulatory, disabled cattle aren’t permitted into the meat supply
in any circumstance.
Specifically, the petition requests an amendment to existing rules to
eliminate the provision enabling a public health veterinarian to allow,
in limited circumstances, cattle that become non-ambulatory after
passing ante-mortem inspection to enter the food supply.
“It makes good sense that the provision that allows non-ambulatory
cattle to be re-inspected for slaughter be rescinded,” said AMI
President and CEO J. Patrick Boyle. “Allowing the current rule to
remain in force could ultimately undermine the confidence of U.S.
consumers and foreign customers, in markets that are proving difficult
to reopen in the first place.”
ADVERTISEMENT
Did you know heavy lice infestations can reduce
weight gain of calves by as much as 0.21 per
day1?
Protect your cattle with Elector® Pour-on. As the first
product in the unique spinosyn class, Elector offers ongoing effective
control of lice at a reasonable price.
For more information, click here.
The label contains complete use information, including cautions
and warnings.
Always read, understand and follow label and use directions.
1Campbell, JB. 2006. Lice Control on Cattle, NebGuide
G93-1180-A.
Elector® is a trademark for Elanco’s brand of
spinosad.
© 2008 Elanco Animal Health.
Markets
Meat Supplies Weigh Down Price
Fundamentals
“Cattle prices in general have been disappointing so
far this year,” says Chris Hurt, Purdue University Extension
economist. “First-quarter, finished-steer prices averaged about
$90/cwt., which was down $1 from the same quarter in 2007. Despite
smaller supplies, calves and feeder cattle prices in the first quarter
were the same as the similar period in 2007.”
In narrower terms, Ag Marketing Service analysts reported Friday:
“Demand remains good on feeder cattle despite the cattle industry
adjusting to the realities of higher feed cost, lingering drought in the
Southwest and feeding cattle in the bio-fuels era.”
For the week, feeder calves and yearlings sold mostly $1-$3/cwt. higher
than the previous week. Fed-cattle sales were steady on a live basis:
$92 in the Southern Plains and $93-$93.50 up north.
“Demand was good for all classes of feeders with aggressive bidding as
in most cases this week weighing and flesh conditions were
attractive,” AMS says. “Several auctions reported heavier than
expected runs this week as the result of good demand and higher prices.
We are several weeks into spring; the grass is here, but fields too wet
to plant corn have resulted in good interest from farmer buyers. Much
this spring is riding on the size of the corn and soybean crop and
forage this summer as weather unfolds.”
Likewise, plenty is riding on the nation’s weak economy. The Federal
Reserve cut interest rates last Wednesday for the seventh time in eight
months. There’s lots of meat competing for consumer dollars, too.
According to the Livestock Marketing Information Center (LMIC), ending
red meat cold storage stocks March 31 were 17% more than the previous
year, due to pork supplies. Frozen chicken stocks were up 31%.
“Looking forward, beef supplies in the second and third
quarter are expected to rise 2-3%,” Hurt says. “Smaller placements
this spring are expected to begin to drop beef production by 4% in the
final quarter of the year. Unfortunately, pork supplies will be large in
the second and third quarters as well, before dropping in the final
quarter. Once the smaller beef supplies arrive by the fall of 2008, they
will continue to drop for several years. Current expectations are for a
2-3% reduction in beef production for 2009.”
The summary below reflects the week ended May 2 for Medium and Large 1
– 500- to 550-lb., 600- to 650-lb. (calves), and 700- to 750-lb.
feeder heifers and steers (unless otherwise noted). The list is arranged
in descending order by auction volume and represents sales reported in
the weekly USDA National Feeder and Stocker Cattle Summary:
| Summary Table |
| State | Volume | Steers | Heifers
|
| Calf Weight | 500-550 lbs.
| 600-650 lbs. |
700-750 lbs. | 500-550 lbs. | 600-650
lbs. | 700-750
lbs. |
| MO | 31,000 | $117.36 | $113.25 |
$110.00 | $106.78 | $103.83 | $98.62 |
| OK | 26,800
| $121.44 |
$111.32 | $108.39 | $106.85 | $103.94 |
$99.70 |
| KY* | 23,900 | $106-116 | $98-108 |
$90-1005 |
$90-100 | $83-933 | $83-935 |
| Dakotas | 20,800
SD
ND |
$126.30
$123.41 |
$121.27
$117.90 |
$109.81
$108.05 |
$106.98
$108.23 |
$108.31
$105.43 |
$99.18
$100.89 |
| TX | 17,000 | $112.78 | $104.30 |
$105.00 | $100.70 |
$100.24 | $97.79 |
| NE | 12,300
| $129.69 |
$118.30 | $108.67 | $110.29 | $105.89 |
$99.45 |
| KS | 11,800 |
$124.16 | $114.92 |
$109.26 | $113.99 | $106.46 | $101.60
|
| AL | 8,200 | $103-111 | $99-109 |
$96-102 | $95-105 |
$90-97 |
$82-885 |
| TN* | 8,100 | $106.73 | $101.41 |
$96.00 | $96.07 | $89.08 | $84.18 |
| GA*(***) |
7,000 | $85-107 | $87-102 |
$80-100 | $85-100.50 | $79-92 | $77-87 |
| AR | 6,300 | $112.51 | $104.94 |
$100.68 | $99.22 | $95.43 | $91.834 |
| Carolinas* |
6,100 | $90-108 | $88-106.25 |
$87-99 | $82-97 |
$75-88.50 | $73-83 |
| FL* | 4,800 | $86-106 | $88-97 |
$83-87 | $80-93 | $80-88 |
** |
| IA | 4,700
| $118.59 |
$116.66 | $108.94 | $111.21 |
$104.692 | $97.95 |
| MS* | 4,200 | $90-1001 | $82-903 | ** | $88-931 |
$80-883 | **
|
| MT | 4,100
| $119.73 |
$114.97 | $104.37 | $106.56 | $105.66 |
$98.01 |
| NM * | 3,900 | $117.46 | $106.18 |
$101.456 |
$100.462 |
$94.44 | $93.784 |
| CO | 3,500 | $125.00 | $121.69 |
$108.00 | $107.20 | $98.70 |
$94.926
|
| WY | 3,300
| $129.46 |
$113.324 | $104.386 | $112.43 | $106.62 |
$95.896 |
| LA(ND) | 2,600 | $102-115 | $93-100 |
$92-974 |
$98-108 | $90-100 | $80-954 |
| VA | 1,100
| $110.392
| ** |
** |
$92.59 |
** | ** |
| WA* | 1,000 | ** |
$93.696 |
$93.067 |
** | ** |
$92.95 |
* Plus 2
** None reported at this weight or near weight
(***) Steers and bulls
(?) As reported, but questionable
NDNo Description
1500-600 lbs.
2550-600 lbs.
3600-700 lbs.
4650-700 lbs.
5700-800 lbs.
6750-800 lbs.
7800-850 lbs.
Crops
Planting Delays Continue
Other than Spring Wheat, planting is behind schedule for
other grains, according to the National Ag Statistics Service. Corn
planting, especially, is lagging behind expectation and five-year
averages as moisture keeps Corn Belt farmers out of the fields.
Through June, the National Climate Prediction Center is calling for
below normal precipitation in the Western states and Northwest, as well
as for the Gulf Coast of Texas. Everywhere else, their forecast calls
for equal chances of normal, above normal or below normal precipitation.
For the week ending April 27, according to the National Agricultural
Statistics Service:
Corn – 10% is planted, compared to
20% last year and 35% for normal. Progress lagged nearly 20 points or
more behind normal throughout most of the Corn Belt.
Soybeans – 2% is planted, which is
1% behind last year and 3% behind normal. Soybean planting was delayed
in all states except Louisiana. Limited planting activity had occurred
in Kentucky, Michigan and North Carolina, but planting had not begun in
the Corn Belt and adjacent areas of the Great Plains.
Winter Wheat – 15% advanced to the heading
stage, compared to 24% at the same time last year, and 25%
for average. Heading was ahead of normal in California, Colorado and
North Carolina, but was at or behind normal in all other states. 46% is rated as good or excellent.
Spring Wheat – 30% of the crop is in the
ground, which is 2% ahead of last year but 4% behind the
five-year average. When compared with the usual pace, all states were
behind by 13% or more, except Montana and North Dakota where progress
was at or ahead of the five-year-average pace. 4%
has emerged, 2% less than last year and 8% behind the average
pace.
Barley – 35% of seeding is complete;
2% behind last year and 4% behind average. 6% has emerged, which is 7% less than last year
and 6% less than normal.
Sorghum – 27% of the intended acreage is
sown, 2% less than last year, but 1% ahead of normal.
Planting in Texas was 65% complete, ahead of last year and normal by 4
and 11 points, respectively. Planting was also underway in Arkansas with
13% planted, significantly behind last year and normal by 62 and 46
points, respectively.
Oats – 54% of planting is
complete, which is 2% less than last year and 14% behind the
five-year average. Progress lagged the most in Iowa and Minnesota with
planting 40 points or more behind normal. Emergence was delayed in all
states, with development significantly behind the five-year average in
the northern Corn Belt and adjacent areas of the Great Plains. 33% has emerged, 1% less than last year and 9%
behind normal.
Events
Calendar
May 7 – Beef Cow-Calf Standardized Performance
Analysis Workshop, Texas AgriLife Research and Extension Center, Vernon;
940-552-9941, Ext. 231.
May 21-22 – California Animal Nutrition Conference and
Technical Symposium, California State University-Fresno Satellite
Student Union, Fresno; 916-441-2272.
May 28-30 – International Beef Cattle Welfare Symposium,
Manhattan, KS; www.isbcw.beefcattleinstitute.org.
June 4-6 – North Dakota State University “Beyond Borders:
Regional Animal Agrosecurity Conference,” FargoDome, Fargo;
701-231-7522 or www.eden.lsu.edu/AASFargo/.
June 8-11 – Ag Lenders’ Range Camp, Hove Grazing Unit,
Ortley, SD; 605-859-2525.
June 30-July 3 – 2008 Beef Improvement Federation Research
Symposium & Annual Meeting, Hyatt Regency Hotel, Calgary Alberta,
Canada; www.canadianbeefbreeds.com
Contact
Send Questions &
Comments To...
Wes Ishmael, Contributing Editor, BEEF Stocker
Trends, at wesleysink@aol.com
Joe Roybal, Editor, BEEF magazine, at jroybal@beef-mag.com
|
You are subscribed to this newsletter as #email#
To get BEEF Stocker Trends in a different format (Text or HTML),
or to change your e-mail address, please visit your profile
page to change your delivery preferences.
For questions concerning delivery of this newsletter, please contact our
Customer Service Department at:
Customer Service Department
BEEF Magazine
A Penton Media publication
US Toll Free: 866-505-7173
International: 847-763-9504
Email:beefmagazine@pbinews.com
Copyright 2007, Penton Media. All rights reserved. This article is
protected by United States copyright and other intellectual property
laws and may not be reproduced, rewritten, distributed, re-disseminated,
transmitted,
displayed, published or broadcast, directly or indirectly, in any medium
without the prior written permission of Penton Media.
|
|
