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BEEF STOCKER TRENDS

From the editors of BEEF Magazine
In the August 25, 2009 Issue
 
  Engler, Farr Inducted Into Feeding Hall Of Fame
  Economy Grows, For Now
  Cattle Prices To Increase
  KSU Beef Stocker Field Day
  Send Questions & Comments To...

News

Engler, Farr Inducted Into Feeding Hall Of Fame
Grid-based marketing didn’t just appear at out of the blue. Paul Engler, founding chairman of Texas-based Cactus Feeders – one of the largest cattle feeding organizations in the world – helped pioneer the concept. The aim was to both reward owners of above average cattle and to give his feedlot managers more time to manage rather than bicker with order buyers.

“Throughout his career in the livestock business, Paul Engler has been dedicated to being a low-cost producer, while maintaining the highest level of quality,” the late Robert Peterson, former chairman and CEO of IBP, once said. “Nothing more actively demonstrates this than the many innovations and efficiencies that he and Cactus Feeders have helped bring to the cattle feeding industry…”

Likewise, the fence-line feed bunks taken for granted today weren’t a birthright. W.D. Farr, founder of Farr Feeders in Colorado came up with the notion.

“Before the feedbunks, workers would have to haul feed wagons into each pen manually. The ability to feed from outside the pens greatly improved efficiency and reduced feed waste,” says Dick Farr. “My father was usually about 25 years ahead of everyone else in his thinking.”

Read the full article >

Stocker Economics

Economy Grows, For Now
Nobody knows whether the economy has finally hit bottom, but Wall Street investors’ money suggested Friday that it has.

By the end of last week, all of the major financial indices (Dow, NASDAQ, S&P 500) reached their highest levels since the first week of October.

That optimism was driven by comments made by Ben Bernanke, chairman of the Federal Reserve System, at the Federal Reserve Bank-Kansas City Annual Economic Symposium on Friday.

Bernanke suggested the economy is beginning to emerge from the most severe global financial crisis since the Great Depression.

Read the full article >

Cattle Prices To Increase
“Cattle prices are no longer built on a foundation of long-term cycles in cattle numbers. Today, cattle price changes are dominated by rather short-term factors that can be abrupt,” say analysts with the Livestock Marketing Information Center (LMIC) in their recent market outlook.

The latest shock, of course, being the economic recession bogging down domestic and global markets.

According to LMIC, fed-cattle prices (basis Southern Plains steer) were $8.70 (9%) below a year earlier during the first six months of this year; about $5 of that due to byproduct values. Despite declining feed costs, LMIC analysts point out feedlots have operated in the red for 26 months through July.

Southern Plains feeder steers (700-800 lbs.) were $9 lower on average during the first quarter; Southern Plains steer calves (500-600 lbs.) were down $11.05. Both gained back about $6 in the second quarter.

Read the full article >

Event Spotlight

KSU Beef Stocker Field Day
10th Annual Kansas State University Beef Stocker Field Day Sept. 24 – 9:30 a.m. KSU Beef Stocker Unit, Manhattan, KS
    • Buying and Selling Right, Kevin Dhuyvetter, KSU

    • Partnering with Feedlots: Who brings What to the Table, panel featuring Jerry Bohn (Pratt Feeders), Dan Dorn (Decatur County Feed Yard) and Jim Reeves (JMR Cattle Co.).

    • Thinking Outside the Shots, Dan Thomson, DVM, KSU.

    • Negotiating Custom Grazing Arrangements, panel featuring Mike Collinge (Hamilton, KS), Tim Miser (Cottonwood Falls, KS) and Alan Hess (Alma, KS).

    • Cattle Financing in a Tight Credit Market, Gary Cotterill, Community National Bank, Chanute, KS.

    • Producing Value-added Cattle, Brian Bertelson, U.S. Premium Beef.

    • Weed and Woody Plant Control for Pastures, Walt Fick, KSU.

    • Utilization of By-products on Pasture, Lyle Lomas, KSU.
For more info, contact Lois Schreiner, 785-532-1267 or lschrein@ksu.edu.

Calendar Of Events

Aug. 25-27 – ID Info-Expo, Westin Crown Center, Kansas City, MO; 270-782-9798 or www.animalagriculture.org.

Sept. 14-16 – South Dakota Grazing School, Al’s Oasis and the Lower Brule Trust Land, Oacoma; 605-688-6623, 6-5-280-0127 or www.sdgrass.org.

Sept. 22-23 – Georgia Grazing School, Athens, GA.

Sept. 24 – KSU Beef Stocker Field Day, Beef Stocker Unit, Manhattan, KS; 785-532-1267 or http://www.asi.ksu.edu/.

Sept. 25-27 – Tri-State Meat Goat Conference, Shepperd Arena, Fargo, ND; 701-231-7522 or to www.ndsu.edu/sheepandgoat/.

Sept. 29-Oct. 1 – University of Missouri Grazing School, MU Forage Systems Research Center, Linn County; aes.missouri.edu/fsrc/news/fsrc5.stm.

Oct. 23-24 – Mid-Atlantic Grass Finished Livestock Conference, Holiday Inn Conference Center, Staunton, VA; 434-292-5331

Oct. 29-30 – HOLT CAT Symposium on Excellence in Ranch Management, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

Dec. 14-16 – Lectureship on Managerial Accounting for Ranchers, King Ranch Institute for Ranch Management, Kingsville, TX; 361-593-5401 or krirm.tamuk.edu.

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

Cattle On Feed Higher than Thought

Cattle On Feed Higher than Thought Friday’s Cattle on Feed report fit the trend everyone expected, but higher placements than anticipated by some are being viewed as bearish.

Specifically, placements came in at 112.5% compared to last year (1.7 million head). On-feed inventory Aug. 1 is 2% less than a year ago (9.6 million head), and July marketings were 5% below a year ago (1.9 million head). Friday’s report was the 16th consecutive one that had monthly on-feed numbers lower than the prior year. Yet, marketings and on-feed numbers were also regarded as bearish compared to pre-report estimates.

Fed cattle gained $1-$1.50 by the end of the day Friday – $83.50 in the Southern Plains. Compared to the previous week, live sales in Nebraska sold $0.50 to $1.00 higher at $82.50-$83.00; dressed sales were $1 higher at $131. Compared to Thursday, Friday sales in Iowa and Minnesota sold steady to $0.50 higher at $82-$83; dressed sales sold steady at $130-$131.

“Cattle feeders have lost much of their drive, nerve, equity and banker’s confidence over the last year or so and can’t get excited about pushing the market for feedlot bound cattle,” say analysts with the Agricultural Marketing Service (AMS). “Feedlot closeouts have mostly been losers and most profit hopes have come up empty as the stubborn fed cattle market has yet to respond to tight cattle supply data.”

Click here for market prices >

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OUTLOOK

Hay Supply Projected Higher

Hay Supply Projected Higher Though harvest area is on par with earlier estimates, USDA has raised its estimated average hay yield for 2009. Alfalfa hay production is projected to be the largest since 2005 and other hay the largest since 2004. Consequently, current Livestock Marketing Information Center (LMIC) forecasts put 2009-10 hay marketing year prices well below a year ago with the national average all hay price down about 25%.

Plus, LMIC analysts note, “Hay markets are very regional, and some areas of the U.S. will likely see larger year-to-year price declines.”

For the week ending Aug. 16, according to the National Agricultural Statistics Service:

Corn – 96% is at or beyond silking, 1% behind last year and 2% behind the five-year average. Development was most active in Michigan and the Dakotas, where 20% or more of the corn crop began silking during the week. 40% is at or beyond the dough stage, 6% behind last year, and 24% slower than average. Some of the biggest delays were evident throughout the Corn Belt where Illinois, Indiana, Iowa and Minnesota, four of the top five corn-producing states, were 27 points or more behind normal. 9% of acreage reached the dent stage, 3% behind last year and 17% behind normal. Denting progressed most rapidly in North Carolina and Tennessee, where above average temperatures prevailed during the week. 68% is reported Good to Excellent, 1% more than a year ago.

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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