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Direct Receipts
Direct Receipts: 47,400. Texas 22,300. 99 pct over 600 lbs. 28 pct heifers. Steers: Medium and Large 1 FOB Price 650-700 lbs 107.50-108.55; 700-750 lbs 108.75-110.00; 750-800 lbs 106.00-109.00; 800-825 lbs 105.50-107.35; 850 lbs 106.00; 650-700 lbs 115.75-119.35 Sep-Oct; 750-800 lbs 107.00-114.05 Jul-Oct; Delivered Price 750-775 lbs 112.15; 800 lbs 108.00; 975 lbs 103.50; 625 lbs 119.60 Oct; 700-800 lbs 112.15-116.25 Jul-Aug; 700-800 lbs 114.50-120.00 Sep-Nov; 800-850 lbs 111.00-114.20 Sep-Oct; 900 lbs 103.00-104.00 Jul-Aug. Medium and Large 1-2 FOB Price 675 lbs calves 102.00; 700-775 lbs 102.90-105.25; 800-825 lbs 100.65-102.00; 700 lbs 110.65 Aug; 800 lbs 110.10 Jul; Delivered Price 700 lbs 116.05; 750-800 lbs 109.00-109.50, Mexican Origin 102.25; 800-825 lbs 104.00; 650 lbs 116.00-119.70. Medium and Large 2 FOB Price 700-800 lbs 101.35-101.87; Delivered Price 650-700 lbs 102.50. Heifers: Medium and Large 1 FOB Price 650-700 lbs 106.50; 700-725 lbs 104.00-105.00; 750 lbs 101.00; 600-700 lbs 110.90-117.30 Sep-Oct; 700-800 lbs 101.00-109.55 Aug-Oct; Delivered Price 700 lbs 107.00; 700-725 lbs 109.00-114.20 Sep. Medium and Large 1-2 FOB Price 600-700 lbs 98.40-102.25, calves 95.00; 700-750 lbs 94.00-99.40; 825 lbs 96.90; 700-750 lbs 97.20-106.00 Jul-Aug; Delivered Price 675-700 lbs 103.00; 700-750 lbs 100.50-103.00; 850-900 lbs 99.00; 700-725 lbs 109.00-111.65 Aug-Oct. Oklahoma 10,900. 100 pct over 600 lbs. 11 pct heifers. Steers: Medium and Large 1 Current 750-800 lbs (771) 106.69; several loads 800 lbs 108.00; several loads 850 lbs 105.53; few loads 900 lbs 105.25; Jul load 775 lbs 109.50; Aug load 775 lbs 109.50; Sep several loads 700 lbs 117.25; few loads 750 lbs 113.75; Oct few loads 625 lbs 115.50; Nov load 750 lbs 113.00. Medium and Large 1-2 Current few loads 625 lbs 108.00; few loads 750 lbs 103.52; 800-850 lbs (808) 104.00; few loads 850 lbs 103.00; few loads 975 lbs 99.50. Heifers: Medium and Large 1 Current few loads 690 lbs 100.75; few loads 770 lbs 101.75; Aug few loads 750 lbs 101.00; Sep few loads 700 lbs 111.50. New Mexico 400. 100 pct over 600 lbs. No heifers. Steers: Medium and Large 1 FOB Price 750 lbs 113.00-113.45 Oct-Nov. Kansas 5800. 97 pct over 600 lbs. 65 pct heifers. Steers: Medium and Large 1 775 lbs 110.50; 800-850 lbs 108.00-110.00; 850 lbs 106.50-108.00; 900 lbs 103.50; Contract 875 lbs 107.50 for July 15. Medium and Large 1-2 Contract 850 lbs 105.00 for July 10-Aug 5. Medium and Large 2 750 lbs 104.00. Medium and Large 1 Delivered basis 845 lbs 109.95; 950-1000 lbs 105.00. Medium and Large 1-2 714 lbs 109.00; 850-900 lbs 106.00-106.50. Bulls: Medium and Large 1-2 590 lbs 105.00. Medium and Large 2 778 lbs 104.00. Heifers: Medium and Large 1 700-750 lbs 104.00; 750-800 lbs 103.75-105.35; 800 lbs fleshy 95.00; Contract 750 lbs 105.00 for July 10-Aug 5. |
USDA Report Assesses 2008 Corn And Soybean Acreage
Direct & Counter-Cyclical Payment Signup Underway In New Farm Bill
Livestock Producers Fear Corn Shortage
Commissioner Staples’ Historic Trip To Cuba A Big Success
Feeders Steady To $3 Higher
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USDA Report Assesses 2008 Corn And Soybean Acreage
Washington - Despite the recent flooding in the Midwest, U.S. farmers expect to harvest nearly 79 million acres of corn and more than 72 million acres of soybeans in 2008, according to the Acreage report released June 30 by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).
The report shows U.S. farmers planted 87.3 million acres of corn in 2008, down 7 percent from last year’s 93.6 million acres, but still the second largest area since 1946. Of that area, growers expect to harvest 78.9 million acres for grain, down 9 percent from 2007 but still the second largest area since 1944. For soybeans, 2008 planted area is estimated at 74.5 million acres, the third largest on record and up 17 percent from last year. Of the planted area, farmers expect to harvest 72.1 million acres, up 15 percent from last year.
NASS collected the initial data for the annual Acreage report during the first two weeks of June, before the majority of the flooding occurred in the Midwest. In an effort to more accurately determine how much of the planted area producers still intend to harvest for grain, NASS re-interviewed 1,150 farmers last week in flood-affected areas of Illinois, Indiana, Iowa, Minnesota, Missouri and Wisconsin.
“While many farmers are still assessing their damage and their options, this re-interview process provided a first look at how much of the planted corn and soybeans may remain standing for harvest,” said Carol House, chair of NASS’s Agricultural Statistics Board. “And what we are seeing is that the ratio of acres intended for harvest, compared to acres originally planted, is off about 2 percent from what we would have expected prior the floods.”
NASS’s August 12 Crop Production report will contain the first 2008 estimates of corn and soybean yield and production. To help ensure that these estimates are based on the best information available, NASS will supplement its standard survey activities by re-interviewing approximately 9,000 farmers in the flood-affected areas. These re-interviews will be conducted in the middle of July, allowing time for flooded fields to dry and for farmers to fully assess their options. Additionally, NASS will increase the number of corn and soybean fields selected for objective field measurements.
Direct & Counter-Cyclical Payment Signup Underway In New Farm Bill
Washington - Agriculture Secretary Ed Schafer said USDA’s announcement for signup in the 2008 Direct and Counter-cyclical Payment Program (DCP) helps deliver certainty for the crop year and the option of a timely advance payment. Contracts are available at USDA Service Centers and signup will continue until September 30, 2008. USDA’s DCP readiness follows the June 12 availability of marketing assistance loan and loan deficiency payment (LDP) provisions, within three weeks of commodity title enactment.
“Within weeks of its becoming law, we began to put a farm bill into the field and into the country,” said Schafer. “USDA does what its employees do best: putting policy into action and delivering results.”
Producers can fill out their 2008 DCP contract at any USDA Service Center. Producers can also sign-up online. They can choose payment options, assign crop shares and sign and submit their contracts from any computer with Internet access. They can also view and print submitted contract options.
USDA computes DCP payments using base acres and payment yields established for each farm. Eligible producers receive direct payments at rates established by statute regardless of market prices. For 2008, eligible producers may request to receive an advance payment of 22 percent of the direct payment for each commodity associated with the farm. USDA will issue advance direct payments as soon as practical after enrollment. Final direct payments will be issued after Oct. 1, 2008. Counter-cyclical payments vary depending on market prices, and are issued only when the effective price for a commodity is below its target price (which takes into account the direct payment rate, market price and loan rate).
Since 2002, USDA has issued approximately $40 billion in DCP payments to America’s agricultural producers. Participants must submit the completed DCP contract by Sept. 30, 2008. Applications filed after this date will not be approved.
The online, electronic DCP (or eDCP) service saves producers time, reduces paperwork and speeds contract processing at USDA Farm Service Agency offices. It is available to all producers who are eligible to participate in DCP and who obtain eAuthentication accounts.
The electronic service is available by going to http://www.fsa.usda.gov and clicking on “Access eDCP Service.” To access the service, producers must have an active USDA eAuthentication Level 2 account. To get a Level 2 account, producers must complete an online registration form at http://www.eauth.egov.usda .gov and then visit the local USDA Service Center to verify their identity. The service has strict security measures to protect participants’ private information. Only authorized federal employees have access to information producers submit electronically. For more information about DCP, which will include a fact sheet, go to the DCP Web page at: http://www.fsa.usda.gov.
Livestock Producers Fear Corn Shortage
Adam Templeton
DTN Staff Reporter
Omaha (DTN) — Livestock producers are asking the Environmental Protection Agency to cut this year’s 9 billion gallon renewable fuels quota in half. Producers fear this government-mandated goal, coupled with a shrinking corn crop, will send animal feed supplies up in environmentally friendly smoke.
Dave Warner, a National Pork Producers Council spokesman, said the corn crop was struggling even before the heavy rains and flooding. An especially cool and wet spring meant some farmers weren’t able to plant until mid-June.
“Now you have the flood on top of that,” Warner said. “We can’t have a federal mandate of 9 billion gallons this year. There ain’t enough corn.”
The fight to slash biofuels production in half has been championed by Texas Governor Rick Perry since April.
Of course, waiving this year’s mandate won’t immediately drive down commodity prices, nor will it act as a cure-all for the volatile livestock industry, said Nebraska Cattlemen President Larry Smith in a press release.
However, Smith said, “The RFS is clearly one factor contributing to tighter grain supplies and thus higher feed prices and the EPA should act on the petition from the state of Texas.”
Several counterpoints have been raised against reducing the RFS.
“Removing 4.5 billion gallons of ethanol from the market, as envisioned by Governor Perry’s waiver request, would increase gasoline prices in the short term (up to one year) by up to 31 percent,” according to the testimony of Bob Dinneen, Renewable Fuels Association CEO, during a May Subcommittee on Energy and Air Quality hearing on a the RFS.
The testimony went on to speculate gas prices could go as high as $4.79 a gallon without the 4.5 billion gallons to hold down energy costs.
In the meantime, Warner and other producers are asking USDA to implement new policies that would make up for the corn lost to late planting and flooding.
Warner said he was meeting with Secretary of Agriculture Ed Schafer, to ask that farmers who received disaster payments still be allowed to plant this year.
Warner also wants farmers to be able to remove lands from the Conservation Reserve Program and convert them over to agriculture production without penalty. Farmers who enroll their land in the CRP and then break their contract are slammed with heavy fines.
Schafer has stated publicly he wouldn’t waive such penalties for 2008, but was reserving judgment for next year, said John Johnson, deputy administrator for farm programs at the Farm Service Agency.
USDA encouraged producers like Warner to come forward with their concerns.
“We’re supplying testimony to the EPA, just like those (agricultural producer) groups — all concerns need to weigh in,” said USDA spokesman Jim Brownlee. “Hopefully, a decision will be made in the best interests of the agricultural, food and energy and security needs of this country.”
Brownlee said USDA couldn’t comment on the correlation between ethanol mandates and feed prices because dozens of factors were in play where the RFS was concerned.
Warner is also advocating for the change of a handful of other ethanol-related policies. Among other things, he hopes to repeal the ethanol production tax credit and the import tariff on foreign biofuels.
The tax credit subsidizes the ethanol industry with an extra $1.26 per bushel of corn, which allows ethanol producers to outbid other entities competing for corn, Warner said.
And the import tariff makes it financially unviable for other countries to export ethanol to the U.S., he added.
Commissioner Staples’ Historic Trip To Cuba A Big Success
Austin – Agriculture Commissioner Todd Staples returned from a historic trade mission to Cuba with two contracts signed, more sales under negotiations, new partnerships developed and the confidence the contacts made on this trip will payoff with big dividends down the road.
“This trade mission exceeded our expectations and was a major success. There is a huge potential for exporting Texas products to Cuba, and the mission has set the table for a long-term business relationship with our neighbors in the Caribbean,” Commissioner Staples said. “The Cuban buyers were very accommodating and made it clear they are ready to do business with Texas.”
The trip is already producing results; two contracts totaling $400,000 have been inked to sell cotton to Cuba. Additionally, immediate deals are in the works to export more Texas aggrriculture products to the Cuban nation.
Commissioner Staples became the first statewide elected official from Texas to visit Cuba on state business in more than 45 years. The Commissioner led a delegation of 24 Texans, including farmers, ranchers, commodity suppliers and port representatives. The group met with Cuban government officials who procure agricultural products and visited three Cuban farms and food markets to identify food needs not met by domestic production.
According to the U.S. Census Bureau, Texas has exported well over $100 million in agricultural products to Cuba since 2000 when Congress partially lifted the trade embargo against the island nation. Commissioner Staples believes that number will grow dramatically over the next few years.
“Cuba needs good quality agricultural products. Texas farmers and ranchers produce the best food in the world and it just makes sense for our state to help feed the Cuban people,” Commissioner Staples said.
Since 1961, when President John F. Kennedy imposed a trade embargo on the Caribbean country, U.S. and Cuba trade had been non-existent until recently. In October 2000, Congress passed the Trade Sanctions Reform and Export Enhancement Act, allowing the sale of agricultural and medical products to Cuba.
Feeders Steady To $3 Higher
St. Joseph, MO — June 27 (F-S) National feeder cattle receipts: 188,000. Feeder cattle and calves sold steady to $3 higher with the full advance on heavy yearlings weighing over 800 lbs and the lightest demand displayed for lightweight calves under 500 lbs. Lighter seasonal offerings were made up of large consignments of yearlings off grass and smaller packages of calves in varying degrees of condition. Southeastern markets regained ground until late in the week when buyers cleaned up orders before closing down for the Independence Day break. Receipts were over 20 percent lighter in the Southern states than the same week last year when severe drought was forcing herd liquidations. Northern Plains and Mountain States marketing has been very light with adequate moisture keeping cattle on pasture and most salebarns on abbreviated schedules. Although, two major Nebraska auctions were open for business this week in Bassett and Valentine, featuring nearly 1200 head of 800-900 lb top quality steers averaging over $115.30. Most major auction markets across the Plains and the Midwest will be open for business as usual next week with the 4th of July falling on a Friday. Feeder cattle prices are currently jostling back and forth with two major fundamental factors pulling the market in opposite directions. Lighter supplies of cattle being fed and the expectation of tight numbers of calves and yearlings in the near future (due to the escalating cow slaughter) has bolstered feeder demand. However, record high feed prices and never before seen cost-of-gains are applying near equal amounts of pressure. The CME cattle futures are just as promising as the CBOT grain contracts are disappointing to the future success of feeding cattle. Spring live cattle futures are trading near $117, while all of this year’s remaining corn contracts are from $7.50-8.00/bu. Direct fed cattle prices made significant gains this past week with live sales $2-4 higher from $98.00-99.50 and dressed sales mostly $5 higher at $155. Live sales are expected to break the $100 mark soon and cattle feeders are anxious to finally see some triple-digit figures to match their breakevens. Boxed beef cut-out values have made significant gains and packer margins are reportedly well into the black as their meat salesmen have held the leverage on recent sales and are expected to hold their advantage through the holiday as higher prices have caused retailers to be short-bought. The release of next week’s USDA grain report is much anticipated as pre-report predictions are covering a wide range. This week’s reported auction volume included 43 percent over 600 lbs and 44 percent heifers.
Texas 19,200. 38 pct over 600 lbs. 38 pct heifers. Steers: Medium and Large 1 300-350 lbs (318) 131.56; 350-400 lbs (374) 122.99; 400-450 lbs (421) 106.75; 450-500 lbs (476) 112.08; 500-550 lbs (522) 108.80; 550-600 lbs (574) 111.81; 600-650 lbs (621) 108.76; 650-700 lbs (680) 109.41; 700-750 lbs (737) 107.65; 750-800 lbs (769) 106.44; 800-850 lbs (801) 108.66. Medium and Large 1-2 550-600 lbs (579) 108.54; 600-650 lbs (622) 108.65; 650-700 lbs (666) 107.86; 700-750 lbs (731) 109.08; 750-800 lbs (761) 108.18; 800-850 lbs (806) 104.75. Heifers: Medium and Large 1 300-350 lbs (319) 110.12; 350-400 lbs (373) 103.32; 400-450 lbs (422) 105.37; 450-500 lbs (472) 101.95; 500-550 lbs (525) 101.27; 550-600 lbs (578) 103.24; 600-650 lbs (624) 100.44; 650-700 lbs (666) 101.10; 700-750 lbs (735) 102.25; 750-800 lbs (779) 102.94. Medium and Large 1-2 450-500 lbs (478) 106.80; 500-550 lbs (530) 104.25; 550-600 lbs (570) 101.56; 600-650 lbs (621) 106.02; 700-750 lbs (707) 103.89.
Oklahoma 25,600. 71 pct over 600 lbs. 41 pct heifers. Steers: Medium and Large 1 300-350 lbs (320) 136.31; 350-400 lbs (370) 125.52; 400-450 lbs (426) 119.95; 450-500 lbs (472) 118.97; 500-550 lbs (527) 115.31; 550-600 lbs (575) 114.49; 600-650 lbs (624) 112.32; 650-700 lbs (681) 111.39; 700-750 lbs (724) 109.69; 750-800 lbs (781) 109.44; 800-850 lbs (825) 108.26; 850-900 lbs (869) 106.83; 900-950 lbs (922) 104.73; 950-1000 lbs (973) 102.51. Medium and Large 1-2 pkg 450 lbs 116.00; 450-500 lbs (459) 117.12; 500-550 lbs (540) 109.69; 550-600 lbs (585) 112.52; 600-650 lbs (631) 109.66; 650-700 lbs (684) 109.29; 700-750 lbs (728) 108.17; 750-800 lbs (783) 107.75; 800-850 lbs (827) 106.33; 850-900 lbs (872) 104.36; 900-950 lbs (921) 100.33. Holsteins: Large 3 600-650 lbs (605) 74.10; 650-700 lbs (690) 77.02; pkg 815 lbs 77.50; 900-950 lbs (914) 65.93. Heifers: Medium and Large 1 300-350 lbs (328) 111.29; 350-400 lbs (374) 107.99; 400-450 lbs (427) 109.54; 450-500 lbs (477) 106.95; 500-550 lbs (528) 105.04; 550-600 lbs (572) 102.00; 600-650 lbs (627) 104.09; 650-700 lbs (679) 103.66; 700-750 lbs (720) 103.37; 750-800 lbs (773) 103.45; 800-850 lbs (819) 102.98; 850-900 lbs (862) 100.73; 900-950 lbs (918) 95.89; 950-1000 lbs (968) 95.92. Medium and Large 1-2 450-500 lbs (472) 106.29; 500-550 lbs (529) 105.70; 550-600 lbs (583) 102.14; 600-650 lbs (620) 103.86; 650-700 lbs (671) 103.22; 700-750 lbs (720) 102.18; 750-800 lbs (783) 100.79; 800-850 lbs (832) 97.34; 850-900 lbs (872) 98.69.
New Mexico 4900. 33 pct over 600 lbs. 50 pct heifers. Steers: Medium and Large 1 400-450 lbs (439) 114.98; 450-500 lbs (471) 112.02; 500-550 lbs (531) 113.30; 550-600 lbs (571) 109.21; 600-650 lbs (628) 107.51. Medium and Large 1-2 pkg 330 lbs 130.00; 350-400 lbs (393) 127.45; 400-450 lbs (417) 125.00; 450-500 lbs (483) 110.98; 500-550 lbs (529) 106.61; 550-600 lbs (567) 107.11; 600-650 lbs (622) 107.59; 650-700 lbs (673) 108.49; pkg 760 lbs 98.00; pkg 880 lbs 92.00. Heifers: Medium and Large 1 400-450 lbs (423) 103.86; 500-550 lbs (528) 98.13; 550-600 lbs (566) 99.36; 600-650 lbs (609) 101.70. Medium and Large 1-2 450-500 lbs (484) 109.05; 600-650 lbs (628) 103.88; 650-700 lbs (672) 104.28; pkg 720 lbs 100.00; 750-800 lbs (793) 93.71.
Kansas 3500. 76 pct over 600 lbs. 43 pct heifers. Steers: Medium and Large 1 pkg 620 lbs 118.50; 650-700 lbs (665) 112.98; 700-750 lbs (729) 113.56; 800-850 lbs (828) 112.38; 850-900 lbs (871) 111.02. Medium and Large 1-2 pkg 695 lbs 111.50; 700-750 lbs (744) 111.08. Heifers: Medium and Large 1 pkg 590 lbs 111.25; 650-700 lbs (683) 105.50; 750-800 lbs (781) 102.13; pkg 800 lbs 102.60. Medium and Large 1-2 450-500 lbs (478) 116.60; 550-600 lbs (572) 109.00; pkg 655 lbs 103.25; 700-750 lbs (735) 101.37; 750-800 lbs (784) 98.59.
Missouri 25,700. 56 pct over 600 lbs. 43 pct heifers. Steers: Medium and Large 1 350-400 lbs (373) 121.18; 400-450 lbs (427) 122.62; 450-500 lbs (470) 121.61; 500-550 lbs (529) 118.00; 550-600 lbs (575) 118.47; 600-650 lbs (628) 114.21; 650-700 lbs (676) 113.34; 700-750 lbs (721) 111.91; 750-800 lbs (779) 110.22; 800-850 lbs (814) 109.29; 850-900 lbs (884) 108.42; 900-950 lbs (921) 106.03. Medium and Large 1-2 350-400 lbs (381) 119.86; 400-450 lbs (427) 116.33; 450-500 lbs (478) 116.33; 500-550 lbs (528) 112.96; 550-600 lbs (571) 112.92; 600-650 lbs (624) 110.97; 650-700 lbs (672) 109.63; 700-750 lbs (726) 108.53; 750-800 lbs (768) 106.48; 800-850 lbs (820) 107.75; 850-900 lbs (875) 104.31; 900-950 lbs (915) 105.16. Holsteins: Large 3 350-400 lbs (380) 77.22; pkg 695 lbs 65.00; 700-750 lbs (710) 71.80; 800-850 lbs (838) 70.73; 900-950 lbs (936) 70.01. Heifers: Medium and Large 1 300-350 lbs (324) 110.36; 400-450 lbs (423) 107.31; 450-500 lbs (482) 106.97; 500-550 lbs (519) 106.32; 550-600 lbs (572) 106.91; 600-650 lbs (623) 104.11; 650-700 lbs (674) 103.57; 700-750 lbs (734) 103.09; 750-800 lbs (776) 99.82; 800-850 lbs (819) 100.45; 850-900 lbs (868) 94.36. Medium and Large 1-2 300-350 lbs (328) 104.49; 350-400 lbs (376) 104.68; 400-450 lbs (426) 103.46; 450-500 lbs (473) 102.90; 500-550 lbs (520) 100.33; 550-600 lbs (576) 99.80; 600-650 lbs (622) 100.95; 650-700 lbs (673) 100.15; 700-750 lbs (728) 98.53; 750-800 lbs (758) 97.54; 800-850 lbs (823) 96.41; 850-900 lbs (866) 91.24; pkg 920 lbs 91.50.
Arkansas 8,000. 30 pct over 600 lbs. 46 pct heifers. Steers: Medium and Large 1 300-350 lbs (320) 119.05; 350-400 lbs (376) 116.97; 400-450 lbs (426) 115.68; 450-500 lbs (474) 111.50; 500-550 lbs (526) 107.42; 550-600 lbs (571) 106.35; 600-650 lbs (624) 103.89; 650-700 lbs (673) 102.65; 700-750 lbs (722) 100.45. Medium and Large 2 300-350 lbs (324) 115.39; 350-400 lbs (376) 107.67; 400-450 lbs (429) 105.36; 450-500 lbs (475) 103.27; 500-550 lbs (526) 101.02; 550-600 lbs (573) 99.57. Heifers: Medium and Large 1 300-350 lbs (324) 103.79; 350-400 lbs (380) 102.50; 400-450 lbs (422) 101.30; 450-500 lbs (473) 100.06; 500-550 lbs (524) 97.54; 550-600 lbs (574) 95.85; 600-650 lbs (621) 95.21; 650-700 lbs (667) 93.42. Medium and Large 2 300-350 lbs (327) 104.69; 350-400 lbs (375) 98.44; 400-450 lbs (421) 95.54; 450-500 lbs (474) 93.82; 500-550 lbs (524) 91.52; 550-600 lbs (571) 90.93; 600-650 lbs (624) 89.82; 650-700 lbs (670) 88.19.
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