2010 Commercial
Heifer Catalog
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SATURDAY, FEBRUARY 6 9:00 a.m. Sale of Champion Steers, Lambs, Barrows and Wether Goats West Arena 12:00 noon 23rd Annual Rabbit Auction Poultry Building 3:00 p.m. Southwestern Exposition and Livestock Show 54th Annual Select Breeders Quarter Horse Sale West Arena SUNDAY, FEBRUARY 7 12:30 p.m. Southwestern Exposition Invitational 23rd Annual Commercial Heifer Sale West Arena |
2009 Texas Cattle Inventory Down 2 Percent From Last Year
Ag Banks Still Lending Borrowers Remain Distressed
Retail Fertilizer Trends Remain Strong, But Could Go Lower
Cattle Sector Has Hope Profits In 2010 Depend On Affordable Feed
National Feeder Cattle Summary
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2009 Texas Cattle Inventory Down 2 Percent From Last Year
Austin - The inventory of Texas cattle and calves totaled 13.3 million head on January 1, 2010, down 2 percent from last years inventory.
Texas continued to rank first in the nation in total number of cattle and calves with 14 percent of the total United States inventory.
Beef cow inventory, at 5.14 million head, was down 1 percent from last years total. Milk cow inventory, at 410,000 head, was down 20,000 head from the 2009 total of 430,000 head.
Total inventory of all cows that have calved was 5.55 million head, down 1 percent from last years total.
Beef replacement heifers totaled 760,000 head on January 1, down 4 percent from the 2009 total of 790,000 head. The milk replacement heifer inventory was 250,000 head, up 30,000 head from last years total.
Texas inventory of steers 500 pounds and over totaled 2.53 million head, down 9 percent from the 2009 total. Total inventory of heifers, steers and bulls less than 500 pounds was 2.3 million head, up slightly from last year. The 2009 calf crop totaled 4.75 million head, down 1 percent from the 2008 calf crop.
The United States inventory of all cattle and calves totaled 93.7 million head on January 1, 1 percent below last years inventory of 94.5 million head.
All cows and heifers that have calved totaled 40.5 million head, down 1 percent from the 41.0 million on January 1, 2009.
Beef cows totaled 31.4 million head, down 1 percent from a year ago, while milk cows were down 3 percent from a year ago at 9.1 million head.
Beef replacement heifers, at 5.4 million head, were down 2 percent from the previous year. Milk replacement heifer numbers were up 2 percent to 4.5 million head.
The 2009 calf crop was estimated at 35.8 million head, down 1 percent from 2008.
Ag Banks Still Lending Borrowers Remain Distressed
Chicago (Reuters) Lending by commercial banks may be less than desired, but farm banks are continuing to finance the sector even though some borrowers are not doing so well, an executive of a major U.S. agricultural bank said.
Samuel Miller, senior vice president of agribusiness and food banking at Milwaukee-based M&I Bank, the seventh largest U.S. farm bank, said the dairy sector has been hit hard by the recession, which ended in the third quarter of last year.
We dont change our lending practices. Our borrowers are not performing as well as they have in the past, but banks continue to lend, he said on the sidelines of the Top Producer Seminar, attended by more than 600 farmers.
Theres more stress than there was (in 2008), depending on the segment. Potato growers are doing great. Dairy, not so much, Miller said, without giving details.
Agriculture was among a handful of bright spots in the economy during the recession, but prices turned down in 2009 after a blistering rally to record highs in 2008.
Chicago Mercantile Exchange milk futures prices have tumbled about 30 percent since peaking above $20 per cwt in 2008 amid a sharp decline in exports and high input costs.
Losses in the industry pushed a dairy group, Cooperatives Working Together, to organize a dairy herd retirement program in a bid to reduce milk production and lift prices.
Dairy farmers were also taking steps to help protect them from the pitfalls of lower prices.
Miller said dairy farmers in Wisconsin, the No. 2 dairy producing state, have increased efforts to hedge their expenses using futures contracts for feeds such as corn and soybean meal at the Chicago Board of Trade.
He also said the banks grain elevator clients borrowed less money in 2009 than they did in 2008.
The sharp fall in corn and soybean prices from 2008s record highs along with the overall slump in the global economy allowed elevators to borrow less money to buy the commodities, he said.
M&I Bank has also started to increase its client list to restaurants and grocery stores, so it can monitor the supply chain from start to finish.
The bank and its clients are well aware of the agricultures cyclical nature, Miller said, adding that market volatility provides opportunities for farmers to take advantage of peaks and valleys of the market.
Farmers are honest. They pay their debts. They grew up on a farm, as I did, and understand that good times are followed by bad times, which are followed by more good times, he said.
Retail Fertilizer Trends Remain Strong, But Could Go Lower
By Russ Quinn
DTN Staff Reporter
Omaha (DTN) Prices remained strong for the majority of fertilizers the second week of January, but changes could be coming following the decreases in commodity prices seen, according to fertilizer retailers.
Continuing to lead the way higher the second of January were the phosphate fertilizers. DAP and MAP both were 16 percent higher compared to the second week of December. Right behind the phosphates was UAN32, which rose 13 percent. Urea, anhydrous and UAN28 were all just slightly higher for the time period.
The two fertilizers with price decreases also continue to be potash and 10-34-0. Potash was 6 percent lower compared to a month earlier, and 10-34-0 was down just slightly.
Corn prices have seen a sharp downturn since USDA released its estimates for higher 2009 U.S. corn production. Allen Cline, with Cline Grain of Ladoga, Ind., said this type of commodity market activity is bound to put pressure on fertilizer prices.
I would think that we will see the end of higher prices in fertilizer - especially the run-up we have been seeing with the phosphates, said Cline, whose business includes grain, fertilizer and farming.
Retailers seem to think there will be changes coming to fertilizer prices. Several retailers kept their prices the same when contacted by DTN, but they commented that changes were coming. Some retailers said they-believe lower prices are on deck. Others, however, are unsure of what this will bring. One retailer decided not to publish bids because of that uncertainty.
Fertilizer prices are not already showing weakness, Cline said, because there is a bit of lag time between fertilizer-price moves and commodity-price moves. He said he has studied the relationship between the corn market and nitrogen and phosphate fertilizer prices. Most of the time, he said, the corn and fertilizer markets tend to follow each other in direction, with the fertilizer market usually a step or two slower.
I think we will see fertilizer maybe steady to weak in the coming weeks, he said.
Since DTN has been tracking fertilizer prices on a weekly basis, beginning Nov. 3-7, 2008, all eight of the major fertilizers are now showing double-digit decreases in prices. 10-34-0 leads the way lower, down 69 percent, with MAP down 57 percent and anhydrous settling 55 percent lower. DAP is now down by 54 percent, UAN28 dropped 52 percent and UAN32 has fallen 43 percent.
Potash is now 42 percent lower and quickly closing the gap with UAN32. Bring up the rear is urea, which is down 32 percent.
DTN Pro Grains subscribers can find current retail fertilizer prices by location on the Fertilizer page under Farm Business.
DTN collects fertilizer prices from several dozen retailers weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
Cattle Sector Has Hope Profits In 2010 Depend On Affordable Feed
Chicago (Reuters) The $7 billion that U.S. cattle producers have lost in the past two years have been the worst in decades if not ever, and they hope an improving economy will restore some profits in 2010.
Chances for profits this year are tied tightly to a healthier economy and lower feed prices. People need jobs so they can spend money at restaurants and buy beef steaks and filets at supermarkets, economists said.
Over the last two years we have lost about $7 billion feeding cattle. That is without a doubt one of the ugliest stretches we have ever seen, said Gregg Doud, economist for the National Cattlemens Beef Association.
Doud will join thousands of other cattle producers in San Antonio, Texas for the National Cattlemens Beef Association annual convention. The NCBA is the nations largest cattle group and much of the discussion in workshops and hallways this week will be on the poor state of the industry and what lies ahead in 2010.
Financial losses have taken a toll on the herd. Forecasters expect a U.S. Agriculture Department cattle report to show the smallest herd in more than 50 years. Also, some feedlots have gone out of business and more may follow.
If we dont see some profitability in the next six to eight months, we will age some structural shifts in terms of losing feedlot capacity, said Derrell Peel, agricultural economist at Oklahoma State University. I think we have feedlots that are literally on their last legs.
HOPE SEEN IN 2010
Lower corn prices provide one reason to hope.
The break in the corn market psychologically has had an enormous (positive) impact, said Doud. If you have the risk management, we are actually going to have an opportunity to make some money feeding cattle for the first time in two years.
Profits will also depend on a decline in the unemployment rate from 10 percent. Consumers must gain confidence to eat out more and splurge on steaks, roasts, and filets of beef.
During the recession, consumers have eaten more at home and have opted for lower-cost items such as lunch meats, hot dogs, chicken and pasta. The cattle industry needs them to choose more profitable cuts of meat at home or in restaurants.
The lack of demand due to the economy was the big story last year and it will continue to be the big factor this year, said Peel.
BEEF PLANT MAY CLOSE
Cattle producers also worry the smaller herd and weak demand could cause one or more beef plants to close. This could impede a recovery in the cattle market, denting demand.
Smithfield Foods Inc. recently announced it was closing its Sioux City, Iowa, pork plant. NCBAs Doud worries a beef plant could also close.
There is a lot of fear out there that something like that could happen on the beef side, said Doud. If you no longer have that processing capacity, then it really limits your ability to expand.
National Feeder Cattle Summary
St. Joseph, MO January 29 (F-S) National feeder cattle receipts: 275,300. Feeder cattle and calves sold uneven with most major trading areas posting trends within $1-2 on either side of steady. Most of the weakness was placed on feeders weighing over 700 lbs below I-70 where outlets were starting to fill-up after two weeks of heavy feeder cattle movement. Northern Plains cattle feeders remain aggressive with additional price support for heavier-weights as more independent interests chip through the ice and snow to enter the market each week. The stretch of Interstate highway that connects Kansas City and Denver is often a dividing line that shows the differences between commercial cattle feeding in Southern versus the Northern Plains. The bulk of the fed cattle below I-70 sell on a live basis from feedyards that have a main goal of efficiency, compared to feedlots in the Northern Plains that typically sell on a dressed basis (with the exception of western Nebraska feeders in the 4 percent shrink area) and concentrate their efforts more on quality. Calf prices were also unevenly steady, but their barrier between predominantly higher and lower prices was the Mississippi River. Backgrounders in the central and western portions of the United States paid slightly more for lighter-weight calves this week as they continue their early start on grazing purchases. Southeastern calf markets were slightly lower with muddy local conditions and western orders being pulled back as the big winter storm approached. Thursday a snow and ice making front moved across the Southwest and by Friday winter storm warnings were in effect from New Mexico to North Carolina. Over a foot of snow was dumped on the Texas Panhandle with crippling ice knocking out power across Oklahoma and Arkansas. Hundreds of miles of Interstate 40 were completely shut down as hazardous conditions moved east and halted movement in its path. Fridays cattle inventory report proved that the US herd continues to decline with the total number of cattle and calves down 1 percent from a year ago at 93.7 million head. Total brood cow and beef cow numbers were also 1 percent lower at 40.5 and 31.4 million, respectively. These numbers represent low levels not seen since the 1950s, when there were less than half as many people living within our borders. The number of acres available to raise beef cattle continues to shrink through urban sprawl, conservation, and the expansion of row crop farming. Cow punching cant support increased land values and wealthy investors continue to buy up ranches and turn them into hunting preserves. Still, lighter numbers of cattle can hardly support a profitable finished cattle market with boxed beef cut-out values sharply lower for the week and showlists selling weak to $1 lower from $83-85. This weeks reported auction volume included 52 percent over 600 lbs and 42 percent heifers.
Texas 31,100. 38 pct over 600 lbs. 43 pct heifers. Steers: Medium and Large 1 300-350 lbs (323) 125.64; 350-400 lbs (373) 123.06; 400-450 lbs (422) 115.14; 450-500 lbs (480) 112.51; 500-550 lbs (522) 107.55; 550-600 lbs (571) 103.98; 600-650 lbs (623) 100.06; 650-700 lbs (62) 100.57; 700-750 lbs (729) 96.59; 750-800 lbs (785) 95.81; 800-850 lbs (826) 94.92; 850-900 lbs (869) 93.72. Medium and Large 1-2 450-500 lbs (479) 103.09; 500-550 lbs (524) 105.31; 550-600 lbs (583) 100.10; 600-650 lbs (625) 92.16; 650-700 lbs (679) 91.09; 700-750 lbs (736) 93.65; 750-800 lbs (770) 87.80; 850-900 lbs (870) 84.81. Heifers: Medium and Large 1 300-350 lbs (323) 106.18; 350-400 lbs (374) 105.68; 400-450 lbs (422) 98.32; 450-500 lbs (476) 96.88; 500-550 lbs (518) 95.20; 550-600 lbs (571) 90.62; 600-650 lbs (635) 92.67; 650-700 lbs (693) 92.26; 700-750 lbs (736) 89.46; 750-800 lbs (768) 92.13; 800-850 lbs (819) 84.56. Medium and Large 1-2 350-400 lbs (392) 95.26; 400-450 lbs (419) 93.85; 450-500 lbs (477) 89.65; 550-600 lbs (585) 89.86; 600-650 lbs (624) 86.46; 650700 lbs (682) 88.06; 700-750 lbs (725) 85.04; 750-800 lbs (783) 86.59.
Oklahoma 34,300. 66 pct over 600 lbs. 39 pct heifers. Steers: Medium and Large 1 300-350 lbs (327) 132.17; 350-400 lbs (372) 128.71; 400-450 lbs (427) 123.82; 450-500 lbs (481) 116.08; 500-550 lbs (526) 111.99; 550-600 lbs (574) 106.50; 600-650 lbs (623) 102.53; 650-700 lbs (672) 99.32; 700-750 lbs (722) 98.12; 750-800 lbs (776) 96.56; 800-850 lbs (829) 95.01; 850-900 lbs (866) 93.36; 900-950 lbs (920) 91.47; 950-1000 lbs (963) 91.27. Medium and Large 1-2 450-500 lbs (484) 112.52; 500-550 lbs (534) 106.69; 550-600 lbs (575) 103.76; 600-650 lbs (642) 98.35; 700-750 lbs (720) 95.79; 750-800 lbs (777) 94.67; 800-850 lbs (826) 94.02; 850-900 lbs (885) 92.49. Heifers: Medium and Large 1 300-350 lbs (327) 110.15; 350-400 lbs (374) 107.99; 400-450 lbs (427) 104.37; 450-500 lbs (472) 100.91; 500-550 lbs (522) 96.84; 550-600 lbs (577) 95.13; 600-650 lbs (623) 94.28; 650-700 lbs (669) 93.32; 700-750 lbs (723) 92.63; 750-800 lbs (768) 91.94; 800-850 lbs (823) 89.53; 850-900 lbs (870) 89.26; 900-950 lbs (932) 86.46. Medium and Large 1-2 550-600 lbs (566) 93.08; 600-650 lbs (622) 93.15; 650-700 lbs (669) 90.80; 700-750 lbs (737) 91.59; 750-800 lbs (763) 90.38.
New Mexico 4200. 27 pct over 600 lbs. 36 pct heifers. Steers: Medium and Large 1 450-500 lbs (473) 108.93; 500-500 lbs (516) 95.73; 550-600 lbs (585) 89.02; 600-650 lbs (635) 88.39; 650-700 lbs (675) 84.88; 750-800 lbs (768) 86.66. Heifers: Medium and Large 1 300-350 lbs (327) 106.69; 350-400 lbs (371) 100.59; 400-450 lbs (424) 99.08; 450-500 lbs (424) 99.08; 450-500 lbs (474) 98.19; 500-550 lbs (514) 94.22; 550-600 lbs (579) 84.99; 600-650 lbs (616) 93.43.
Kansas 11,400. 82 pct over 600 lbs. 42 pct heifers. Steers: Medium and Large 1 400-450 lbs (426) 127.39; 500-550 lbs (524) 116.25; 550-600 lbs (576) 109.00; 600-650 lbs (627) 104.65; 650-700 lbs (676) 100.01; 700-750 lbs (717) 98.09; 750-800 lbs (775) 95.33; 800-850 lbs (818) 95.66; 850-900 lbs (864) 94.60. Medium and Large 1-2 450-500 lbs (479) 117.97; 500-550 lbs (525) 110.25; 550-600 lbs (592) 103.29; 600-650 lbs (621) 100.96; 650-700 lbs (682) 95.60; 700-750 lbs (732) 96.01; 750-800 lbs (782) 93.90; 800-850 lbs (815) 92.68; 850-900 lbs (891) 91.18. Holsteins: Large 3-4 pkg 600 lbs 56.00. Heifers: Medium and Large 1 350-400 lbs (382) 114.82; 400-450 lbs (424) 107.07; 450-500 lbs (481) 105.42; 500-550 lbs (536) 100.16; 550-600 lbs (576) 96.98; 600-650 lbs (627) 94.12; 650-700 lbs (677) 93.42; 700-750 lbs (725) 93.17; 750-800 lbs (772) 92.54; 800-850 lbs (822) 90.70. Medium and Large 1-2 400-450 lbs (437) 104.32; 500-550 lbs (543) 93.73; 550-600 lbs (582) 91.59; 600-650 lbs (628) 90.74; 650-700 lbs (678) 90.99; 700-750 lbs (712) 90.23; 750-800 lbs (782) 88.88; 800-850 lbs (805) 88.96.
Missouri 39,800. 56 pct over 600 lbs. 42 pct heifers. Steers: Medium and Large 1 350-400 lbs (379) 122.43; 400-450 lbs (427) 121.05; 450-500 lbs (481) 116.06; 500-550 lbs (528) 112.71; 550-600 lbs (573) 106.86; 600-650 lbs (624) 102.46; 650-700 lbs (675) 98.95; 700-750 lbs (723) 96.71; 750-800 lbs (772) 95.05; 800-850 lbs (821) 93.98; 850-900 lbs (868) 92.63; 900-950 lbs (922) 90.62; 950-1000 lbs (960) 89.59. Medium and Large 1-2 300-350 lbs (333) 116.98; 350-400 lbs (375) 116.76; 400-450 lbs (424) 115.87; 450-500 lbs (473) 111.03; 500-550 lbs (523) 106.65; 550-600 lbs (577) 101.74; 600-650 lbs (628) 97.60; 650-700 lbs (674) 94.94; 700-750 lbs (722) 93.10; 750-800 lbs (778) 92.56; 800-850 lbs (818) 89.84; 850-900 lbs (863) 89.78; 950-1000 lbs (980) 87.63. Heifers: Medium and Large 1 350-400 lbs (376) 108.00; 400-450 lbs (426) 103.58; 450-500 lbs (474) 99.70; 500-550 lbs (524) 96.98; 550-600 lbs (574) 94.77; 600-650 lbs (625) 93.06; 650-700 lbs (671) 92.08; 700-750 lbs (721) 90.79; 750-800 lbs (773) 88.99; 800-850 lbs (807) 87.99; 850-900 lbs (866) 87.16. Medium and Large 1-2 300-350 lbs (327) 102.89; 350-400 lbs (372) 98.38; 400-450 lbs (425) 96.96; 450-500 lbs (477) 95.65; 500-550 lbs (526) 92.84; 550-600 lbs (575) 91.58; 600-650 lbs (620) 89.43; 650-700 lbs (668) 89.12; 700-750 lbs (722) 87.29; 750-800 lbs (777) 86.53; 800-850 lbs (813) 86.48.
Arkansas 6800. 34 pct over 600 lbs. 49 pct heifers. Steers: Medium and Large 1 300-350 lbs (326) 122.53; 350-400 lbs (373) 119.52; 400-450 lbs (427) 115.37; 450-500 lbs (475) 107.90; 500-550 lbs (520) 105.94; 550-600 lbs (572) 101.55; 600-650 lbs (617) 97.71; 650-700 lbs (677) 93.17. Medium and Large 2 300-350 lbs (324) 116.38; 350-400 lbs (376) 112.06; 400-450 lbs (425) 105.27; 450-500 lbs (476) 98.08; 500-550 lbs (522) 96.09; 550-600 lbs (575) 92.78; 600-650 lbs (621) 89.81; 650-700 lbs (678) 85.43. Heifers: Medium and Large 1 300-350 lbs (328) 102.27; 350-400 lbs (378) 102.04; 400-450 lbs (426) 96.86; 450-500 lbs (473) 93.56; 500-550 lbs (526) 91.54; 550-600 lbs (571) 89.58; 600-650 lbs (616) 88.09; 650-700 lbs (682) 88.46. Medium and Large 2 300-350 lbs (326) 93.19; 350-400 lbs (376) 92.44; 400-450 lbs (427) 88.29; 450-500 lbs (476) 86.29; 500-550 lbs (529) 84.51; 550-600 lbs (570) 83.55; 600-650 lbs (613) 84.01; 650-700 lbs (673) 81.70.
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