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BEEF STOCKER TRENDS

From the editors of BEEF Magazine
In the July 14, 2009 Issue
 
  Dairy Herd Launches Next Buyout
  Reducing Hay Fire Risk
  New Livestock Indemnity Program
  Calendar Of Events
  Send Questions & Comments To...

News

Dairy Herd Launches Next Buyout
Cooperatives Working Together (CWT) announced July 2 that its recent dairy herd retirement program had removed 101,040 dairy cows—mostly from the western part of the nation—and almost 2 billion lbs. of annual milk production from the national inventory.

Friday, CWT announced plans to begin the next herd retirement this month.

“Carrying out a second herd retirement right on the heels of the largest‐ever herd retirement should give us a double‐barreled attack on milk production in a very short period of time, resulting in a farm level price recovery several months sooner than would otherwise occur,” explained Jerry Kozak, president and CEO of the National Milk Producers Federation, which manages CWT.

As with recent CWT herd retirements, in addition to submitting bids for their milk herds, participating producers can also offer all of their bred heifers for retirement. Bids are being accepted until July 24.

There’s no word on how many cows CWT is looking to cull from the herd during this new round of herd retirement. When CWT first announced its plans for 2009, Jim Tillison, CWT chief operating officer, said, “Given the economic stresses on the farm today, we anticipate CWT will remove a significant number of dairy animals, but that depends on our members and the level of the bids submitted, given current cow prices.” As with other herd retirement rounds in recent years, he explained CWT has no set target for the volume of milk or the number of cows to be removed.

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Stocker Management

Reducing Hay Fire Risk
Taking a few simple steps when harvesting and storing hay can go a long way in reducing the possibility of fires and associated costs.

For instance, Bob Schultheis, University of Missouri Extension natural resources engineer, explains hay fires usually occur within six weeks of baling. The most common cause is excessive moisture.

"You can reduce fire and mold risk by baling small square bales at 18-22% moisture content and large round bales at 14-18% moisture content,” says Schultheis. “Higher moisture levels increase microbial activity and also result in loss of dry matter and usable protein, which can reduce the feeding value of the hay by as much as one-third."

Read the full article >

Stocker Economics

New Livestock Indemnity Program
As you battle the misfortunes doled out by Mother Nature, keep in mind that USDA has a new program aimed at compensating livestock owners for death loss due to extreme weather and weather-related events.

"This program will provide livestock producers with a vital safety net to help them overcome the damaging financial impact of natural disasters," said USDA Secretary Tom Vilsack when he announced the program last week.

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Events

Calendar Of Events
July 13-17 – Richard Mifflin Kleberg, Jr. Family Lectureship on Equine Science, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

July 15-19 – National Cattlemen’s Beef Association Summer Conference, Denver, CO; 303-694-0305 or www.beefusa.org.

July 21-22 – Nebraska Grazing Lands Coalition and South Dakota Grasslands Coalition Joint Bus Tour, Yankton, SD; jljessop@kennebectelephone.com .

July 27-31 – Grazing Management Lectureship, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

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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


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MARKETS

Corn Drops—Cattle Price Struggles

As price spreads between weights continue to narrow—collapse completely in some cases—the market is paying the premium for folks willing to add more weight. Across the board last week, feeder calves and yearlings brought steady money to as much as $4 more than the holiday-shortened week that preceded it. That seems especially bullish, given how hard fed cattle and futures cattle prices worked last week to lose as little as possible.

“Demand is very good for the larger lots of auction cattle (where available) and short-term delivery country sales, but prices progressively weaken for late summer or fall delivery feeder cattle (especially calves),” said reporters for the Agricultural Marketing Service (AMS) Friday. “Nearly a half million head of feeder cattle were offered for sale on video auctions across the country during the first two full weeks of July. The majority of these cattle are advertised for fall delivery and the heavier supplies have weighed on prices with some top quality 6-weight steer calves struggling to bring $100 while near term sales and current sale barn prices for these types routinely make their way above $110. Buyers are particularly discounting calves right off the cow to be shipped in September and October when the days are hot and nights are cold. However, lower corn prices continue to drive the market for yearling feeder cattle ready to go on feed.”

Click here for market prices >

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OUTLOOK

Estimated Corn Production-Stocks Grow

There was no increased yield mentioned in Friday’s World Agricultural Supply and Demand Estimates (WASDE), but corn supplies were estimated higher. That’s based on the increased corn acreage reported June 30 and reduced overall demand.

Estimates for new-year corn production are 12.3 billion bu., 355 million bu. more than estimated the previous month.

Corn supplies are projected at 14.1 million bu., up 335 million bu. from 2008/09. Feed and residual use for 2009/10 is raised 50 million bu. as increased supplies and lower prices are expected to boost feeding demand.

Click here for more >

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NATIONAL STOCKER AWARD



Information on the 2009 award
Meet the past winners
Report on the first-ever National Stocker Survey
Download the 2009 National Stocker Award Nomination Form
Visit BeefStockerUSA.org

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