Friday July 19 Cattle on Feed Report + Ag News

United States Cattle on Feed Down 3 Percent
   
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.4 million head on July 1, 2013. The inventory was 3 percent below July 1, 2012. The inventory included 6.53 million steers and steer calves, down 3 percent from the previous year. This group accounted for 63 percent of the total inventory. Heifers and heifer calves accounted for 3.78 million head, down 4 percent from 2012.

Placements in feedlots during June totaled 1.59 million, 5 percent below 2012. Net placements were 1.52 million head. During June, placements of cattle and calves weighing less than 600 pounds were 315,000, 600-699 pounds were 232,000, 700-799 pounds were 415,000, and 800 pounds and greater were 625,000.

Marketings of fed cattle during June totaled 1.90 million, 4 percent below 2012. Marketings for the month of June are the lowest since the series began in 1996.  Other disappearance totaled 63,000 during June, 5 percent below 2012.

State  -     On Feed      -    Placements    -    Marketings  
CO     -      920  -5%    -      120  -4%       -    150  -12%  
IA       -      580  -6%    -      47  -23%      -      75  -3%
KS     -     2010  -2%    -     355  -9%       -     395  -5%
NE     -     2180  -4%    -     350  -9%       -     480  +3%
TX      -     2560  -4%    -     425  +1%      -     480  -4%
(1,000 head, % change from last year)



June Milk Production up 1.6 Percent
                       
Milk production in the 23 major States during June totaled 15.8 billion pounds, up 1.6 percent from June 2012. May revised production at 16.6 billion pounds, was up 1.1 percent from May 2012. The May revision represented an increase of 47 million pounds or 0.3 percent from last month's preliminary production estimate.

April - June Milk Production up 0.9 Percent
Milk production in the United States during the second quarter of 2013 totaled 52.0 billion pounds, up 0.9 percent from the April - June quarter last year.

State Production 2nd Quarter 2013
Nebraska ...:  299,000,000 pounds, down 0.3% from same quarter 2012
Iowa ..........:  1,165,000,000 pounds, up 3.6% from same quarter 2012



Ethanol in Texas?
Kim Clark, Director of Biofuels Development, NE Corn Board

Nebraska is the second largest ethanol producer of ethanol in the nation and Texas….well they are a large oil refiner so why would corn states take an ethanol trip to Texas?  That is what I was asking myself when the idea came about.

Planning for the trip began about 4 months ago with the objectives:
-    Understand imports and exports of ethanol and distillers grains
-    Understand transportation logistics of rail and barge facilities
-    Broaden consumer education and outreach of ethanol

The tours and visits planned during the tour were with Valero, BioUrja, Oiltanking, Magellan, Cargill, and the Port of Houston.   The agenda was jam packed with visits but nonetheless this past week 16 corn growers and staff members from Iowa, Indiana, Missouri, Nebraska, Ohio, and Texas participated on the trip.

Some of the interesting take-home points from the trip were:
·         Valero would like to see the RFS amended to meet the actual cellulosic production and the ethanol requirements to meet gas demand since gasoline demand is decreasing.
·         BioUrja buys ethanol from ethanol plants, Oiltanking stores ethanol they receive on railcars or imported on ships, and Magellan transports ethanol and other fuels via pipeline and trucks.  None of these companies are impacted by the RFS; therefore, they are indifferent to what happens.
·         At the Cargill facilities in Houston they mostly export wheat; however some corn and distillers grains leave their facilities
·         Ethanol cannot be transported through pipelines so it has to be trucked in to facilities for usage or put into railcars and transported to export facilities such as the Port of Houston or Oiltanking for storage until it is picked up
·         The Port of Houston is the #1 port in North America for petroleum.  Food and drink followed by Machinery and appliances are the number one and two most imported commodities.  Resins and plastics followed by chemicals and minerals are the top two most exported commodities.

Overall we heard from everyone that ethanol is a cleaner, safer product and they prefer to handle it over other fuel and liquid products.  We need to continue to fight for the RFS because it is working: it is reducing our dependency on imported oil, creating jobs, increasing national security and more.



Petroleum Industry is Misleading Congress and Consumers about RFS and Ethanol 

“Recent attacks on the Renewable Fuel Standard (RFS) by the American Petroleum Institute (API) are misleading the United States Congress and American consumers,” said Gale Lush, Chairman of the American Corn Growers Foundation (ACGF), a corn, soybean and wheat farmer from Wilcox, Nebraska.  “Considering that the fossil fuel industry has had one hundred years of various forms of government support and subsidies including tax credits through which they avoid paying federal taxes, it’s about the same as oil companies getting the equivalent of checks from the federal government and U.S. taxpayers, just in a little different form. Government support, combined with their dominance of motor fuels has amounted to a “mandate” and a captive market for their product, namely gasoline. The API’s call for the elimination of the RFS for ethanol is duplicitous at best and shows a selfish disregard for the best interests of the U.S. economy, U.S. consumers and U.S. energy security given that ethanol keeps gas prices $1.09 per gallon less at the pump than those prices otherwise would be without ethanol in the gasoline pipeline, according to a recent study by Iowa State University. It appears the petroleum industry wants to seize back monopoly market power which could result in a 100 percent oil industry monopoly “mandate” in the U.S. gasoline market if they could replace clean burning, environmentally-friendly ethanol with strictly gasoline, including all its carcinogens such as benzene.”

Lush added that the July 2013 U.S. Department of Agriculture (USDA) supply and demand report shows a near record number of acres planted to corn and near record 2013 corn production projected at about 14 billion bushels, plenty of corn for feed and fuel. Average corn prices are projected to drop by about $2.00 per bushel for the 2013/2014 marketing year.

“The API and big agribusiness livestock trade groups are trying to mislead the public and Congress with their spin that corn use for ethanol is a question of corn for fuel versus corn for food but that is disingenuous given the realities of the actual share of yellow field corn that traditionally goes to cereals and other products. According to USDA only 210 million bushels of corn is used in the category of ‘Cereals and other products’, 270 million bushels goes for ‘Glucose and dextrose’, 250 million bushels goes for ‘Starch’, and 505 million bushels goes for ‘High-fructose corn syrup (HFCS),” said Lush. “Furthermore, USDA projects that total U.S. red meat and poultry production in 2013 will be over 93 billion pounds with per capita U.S. consumption rising from 202.2 pounds in 2012 to 204.8 pounds in 2014. Obviously, there is no shortage of either corn or meat in the U.S. marketplace, so the API and those other anti-ethanol trade groups should knock off their misinformation campaign and back off their attempts at trying to get Congress to repeal the RFS.”

“Only the starch from the corn kernel goes toward producing ethanol,” said Lush. “The minerals, protein, oil, wet or dried distillers grain (DDGS) still goes right into the livestock feeding sector to produce meat for U.S. consumers while each bushel of corn simultaneously provides consumers nearly three gallons of ethanol that is blended with gasoline, keeping gasoline prices about $1.09 per gallon less at the gas pump, a major economic benefit for U.S. consumers and motorists. It appears that the petroleum industry wants to dominate government policy to have monopoly power in the gasoline market, and history shows just how much they are able to gouge consumers without fuel supply competition from ethanol.”

“For many years, as a landowner and farmer I have cooperated with the fossil fuel industry, by allowing them to use my production platform (my farmland) for multiple pipelines, so oil and gas companies can deliver their products (petroleum and natural gas) to the market,” said Lush. “Why shouldn’t I expect the petroleum industry to extend me the same courtesy and cooperation by allowing my product (corn ethanol) to be delivered through their marketing platform (gasoline outlets and stations) to American motorists and consumers? Farmers and the ethanol industry are providing a valuable, high quality product to consumers while enhancing U.S. energy security. With ethanol plants widely dispersed across the U.S. Middle West foreign wars in the Middle East and elsewhere do not jeopardize that part of our domestic fuel supply. This is not about an either or situation of corn for food or for fuel because prior to ethanol use yellow field corn was primarily used for livestock feed, not human consumption. The valuable feed corn components still are going into the livestock feeding industry that provides an abundance of food to consumers in the U.S. and around the world. It’s high time for the petroleum industry to become our American ally and marketing partner instead of our opponent.”



Branstad to Lead Trade and Investment Mission to India

In an effort to strengthen Iowa's trade and investment relationship with one of the world's fastest growing economies, Iowa Governor Terry E. Branstad today announced that he will lead a delegation of business leaders on a six-day trade and investment mission to India Sept. 10-16. The announcement was made today during a webinar on opportunities and challenges in entering the Indian market that featured the governor and U.S. Ambassador to India, Nancy J. Powell, a native of Cedar Falls.

"India's economy has transformed in the last couple of decades and is forecasted to be one of the world's largest economies in coming years," said Gov. Branstad. "With India's tremendous growth and a burgeoning young and career-oriented middle class, it is an excellent opportunity to promote Iowa as a U.S. headquarters for Indian companies, particularly those in biotech, information solutions and advanced manufacturing, and also open new trade doors for Iowa small and mid-sized businesses."

The trade mission is being organized by the Iowa Economic Development Authority (IEDA), with support from various organizations including the U.S. Department of Commerce's Commercial Service and the Confederation of Indian Industry. Iowa mission delegates will visit Mumbai, Hyderabad and Chennai, the country's major business and industry centers.

As part of the mission, the Governor, IEDA director Debi Durham and delegation will meet with potential investment and trade partners and government leaders in each of the cities.

While the itinerary is still being developed, Gov. Branstad is also scheduled to meet with business leaders who have expressed an interest in establishing an Iowa location and representatives from existing industry. Iowa companies will participate in meetings specific to their market entry or expansion needs and attend daily briefings on doing business in India. Prior to joining the mission in Mumbai, Branstad will make a brief stop in New Delhi to attend a luncheon hosted by the U.S. Embassy.

The IEDA works to stimulate foreign direct investment in the state, offers export assistance for small and mid-sized Iowa companies and coordinates international trade and investment missions and trade show opportunities for Iowa companies. Iowa companies interested in participating in the trade mission can contact Victoria Nwasike at victoria.nwasike@iowa.gov.

For more information on resources available to Iowa businesses that want to market their products or services globally, visit www.iowaeconomicdevelopment.com.



Budgets, Ag Appropriations Bills Still Stalled in Congress

The prospects for a continuing resolution appear to be increasing with just two weeks until August recess and impasses on both a budget resolution and appropriations bills, including the agriculture measure. Both chambers have passed budgets, but a conference committee has yet to be established and may never be for political reasons (a prospect that also concerns farm bill-watchers awaiting a conference for that legislation). An agriculture appropriations bill, which provides funding for USDA and other agencies, has still not been considered on the floor of either chamber, though both appropriations committees passed their versions in June. The ag appropriations bill provides funding for many important programs to the wheat industry, including the Market Access Program (MAP), Foreign Market Development (FMD) program, research programs including the U.S. Wheat and Barley Scab Initiative, and food aid.



Wheat Foods Council Elects Officers

Erica Olson, a marketing specialist with the North Dakota Wheat Commission (NDWC), Mandan, ND, is the 2013-14 chair of the Wheat Foods Council (WFC).  Olson started working with the NDWC in 2006, handling promotion activities for foreign buyers including trade team arrangements, providing quality and supply and demand information to customers, statistical and market analysis and marketing information to producers, and assisting with communication efforts.  She grew up on a family farm near Mohall, ND and received B.S. and M.S. degrees in agricultural economics.

“Erica will be a great leader for the Wheat Foods Council and her strong marketing background will be an important asset in the coming year,” said WFC President Judi Adams. “The Council will be continuing our focus on the dietitian community, while also expanding to incorporate extension agents and consumer affairs representatives in our public relations outreach.”
 
Other officers are: 
Vice Chair - Cindy Falk, Kansas Wheat Commission
Falk is a Nutrition Educator for Kansas Wheat. She began in 1985 as a volunteer “Speak for Wheat” spokesperson and part-time nutritionist (1989 -1994). Falk is responsible for domestic marketing and nutrition education where she enjoys developing the annual Kansas Wheat Commission Recipe booklet, providing educational programs, and supervising more than two dozen “Speak for Wheat” volunteer spokespersons. She is currently Chair of the National Festival of Breads. Since 1993, she has served on the WFC Executive Board of Directors and was chairperson in 2002-2003. She earned a B.S. in Human Ecology from Kansas State University.
 
Secretary/Treasurer   Don Brown, Vice President of Sales, ConAgra Mills
Don has been with ConAgra Foods, Inc. since 1982, starting as a feed ingredient merchandiser and has subsequently held several leadership positions in ConAgra Foods’ trading and processing businesses. Don started his career in the grain industry as a grain merchant for Coast Trading Company at the Minneapolis Grain Exchange.  Brown is a member of multiple industry associations including North American Millers Association (NAMA), American Bakers Association (ABA), and National Association of Flour Distributors (NAFD) and was a founding trustee of the Grain Foods Foundation (GFF). He holds a bachelor’s degree in Marketing and an MBA in Management from Minnesota State University.
 
Immediate Past Chair - Brent Robertson, Nebraska Wheat Board
Robertson and his wife Amy raise irrigated and dry land wheat and corn. He is a graduate of the University of Nebraska–Lincoln with a B.S. in diversified agricultural and minors in agricultural economics, animal science, and mechanized systems management. Brent is a member of the NE Wheat Growers Association and Nebraska Farm Bureau.



2013 Sorghum Checkoff Request for Proposals

The Sorghum Checkoff has released request for proposals for its three key program areas: crop improvement, high value markets and renewables.  The goal of the RFP is to further enhance the opportunities for sorghum producers through specific projects and/or education that will increase productivity and/or demand.   Proposals are due by 8:00am (CST) on Monday, August 5, 2013. For more information, visit  www.SorghumCheckoff.com.



Kansas Farm Bureau Joins USGC

Please join the U.S. Grains Council in welcoming its newest member, Kansas Farm Bureau.  Kansa Farm Bureau represents grassroots agriculture. Established in 1919, this non-profit advocacy organization supports farm families who earn their living in a changing industry.  Their mission is "to serve Farm Bureau members in Kansas through programs, products and services which enhance the business and profession of farming, increase members' net income, provide superior value in marketplace and improve the quality of life in Kansas." They accomplish this for almost 40 thousand members, through programs, events and advocacy aimed at leadership development, agricultural education, legal defense, environmental advocacy, farm safety, risk management, rural development and international trade.

USGC Cairo Office Update
The situation in Egypt remains unsettled, and the U.S. Grains Council's first priority is ensuring the safety of our staff. The U.S. Embassy in Cairo was closed on Sunday, July 14 (a work day in Egypt) and reopened on Monday, July 15. The Embassy currently has posted a security message to U.S. citizens warning of possible demonstrations on Friday, July 19. The Council's Cairo office was closed Monday but opened Tuesday and Wednesday. The staff will make a day-to-day decision on whether the streets are quiet enough for safe travel between home and office.