Monday July 9 Ag News

WashCo Feed & Supply Celebrates 2018 Purina® Check-R-Board® Days

WashCo Feed & Supply, a Purina® Certified Expert Dealer, is announcing their 2018 Purina® Check-R-Board® Days, a customer appreciation event.  Stop by WashCo Feed & Supply located at 217 N 10th Street in Blair, NE on June 14 for storewide savings.  Customers can enjoy hamburgers and hot dogs from 10:00 a.m. to 2:00 p.m. and register to win gift cards during this special event.

Customers will also have the opportunity to enter in the national 2018 Purina® Check-R-Board® Days Sweepstakes for their chance to win a 2018 Polaris® Ranger Utility Vehicle, a Trip-for-Two to the Purina® Animal Nutrition Center, or Orion® 65 Cooler.* See store for official rules.

“We are proud to serve the residents of our community and thank them for their continued loyalty,” Steve Probst, Dealer. “We invite everyone to come celebrate our 2018 Purina® Check-R-Board® Days with us!”



Nebraska BQA: The Right Way Is The Only Way! 
Steve Niemeyer – NE Extension Educator

Cow-calf producers have the option of preconditioning calves at weaning to improve health Nebraska is the epicenter of the beef cattle community. Nebraska beef cattle producers are the Nation’s leaders and produce top quality beef for today’s consumers. When it comes to running a strong cattle operation, they do things the right way. Nebraska Beef Quality Assurance (BQA) is here to help with the training and certification to build more value into your operation.

The time is NOW to get your operation BQA Certified or updated on BQA Certification. Today’s food chain is asking more questions of how their food is being raised from producers and processors. Processors are asking that cattle suppliers complete BQA Certification to ensure safe, wholesome beef products for our consumers.

Three simple ways to complete BQA Certification:
• Contact your Veterinarian or Nebraska Extension Beef Educator to assist with BQA Training.
• Attend local BQA Training - Schedule at: bqa.unl.edu
• Complete Online BQA Training free at: bqa.org

Training and Certification includes BQA Best Management Practices, Animal Health & Antimicrobial Stewardship, Stockmanship and the 2016 National Beef Quality Audit information. Nebraska BQA also offers producers additional tools to implement BQA principles to ensure quality cattle care and handling that can be found at: bqa.unl.edu .

All in-person trainings have a $20 certification fee per individual or there are discounts for operations who certify 3 or more individuals. Online training at bqa.org is free and each individual must create a profile and complete training modules.

For more information contact Rob Eirich, Nebraska Director of Beef Quality Assurance at 308.632.1230 or reirich2@unl.edu.



Farmland Leasing Meetings Offer Leasing Arrangement Information

Iowa State University Extension and Outreach will host multiple farmland leasing meetings during July and August at various times and locations throughout Iowa. The annual meetings are offered to address questions that land owners, tenants or other interested individuals have about leasing farmland.

Core components of the 2018 program will include a focus on farmland ownership and tenure in Iowa, the latest on the economics of cover crop research and discussion on implementing conservation practices in leases, land values and cash rent trends, cost of production, methods for determining a fair rental rate, the latest legal updates that impact farm leases and land ownership and communication between tenants or landlords. Additional topics vary by location.

The three-hour workshop is designed to assist landowners, farm tenants and other agri-business professionals with current issues related to farmland ownership, management and leasing arrangements. Attendees will gain a better understanding of current cash rental rate surveys and factors driving next year’s rents such as market trends and input costs. Comments from past participants highlight the value of the materials provided and depth of information covered in the short program.

A 100-page workbook is compiled for the programs, with resources regarding land leasing agreements such as surveys, sample written lease agreements and termination forms, along with many other publications.

Attend a local leasing meeting
The leasing meetings being held across Iowa are facilitated by ISU Extension and Outreach farm management specialists. A listing of ISU Extension and Outreach county offices hosting meetings is available online with additional information available through the Ag Decision Maker website.

For registration information, contact the local ISU Extension and Outreach county office. Pre-registration is encouraged as an additional $5 fee may be added if registering less than two calendar days before the meeting date.

The Ag Decision Maker leasing section also provides useful materials for negotiating leases, information on various types of leases, lease forms and newly updated Decision Tools.



Iowa Corn Thanks It’s Members and the Fans for Another Great Ethanol Powered Iowa Corn 300

Promoting ethanol to a worldwide audience, yesterday’s 12th running of the Iowa Corn 300 will be one for the record books. James Hinchcliffe brought home his first win at the Iowa Corn 300 taking the lead with just over 40 laps remaining. This year’s race also included many unique aspects showcasing Iowa Corn farmers and the corn-based ethanol that fuels IndyCars.

The new “pit-row-of corn” with fuel nozzles coming out of the stalks on the infield and the corn start/finish line on the track of the Iowa Speedway were highlights making the connection to the cornfields of Iowa to the ethanol-powered racing on the track. Iowa Corn Promotion Board President Duane Aistrope kicked off the race by saying “Drivers, start your Iowa corn ethanol power engines” while Iowa Corn Growers Association President Mark Recker waved the green flag. Aistrope and Recker presented Hinchcliffe with the Iowa Corn 300 trophy in victory lane.

“Iowa Corn would like to congratulate James Hinchcliffe on his first win here at the Iowa Corn 300,” said ICPB President Duane Aistrope, a farmer from Randolph. “This event offers race fans an up-close view of the power and performance of corn-ethanol on the fastest short track on the planet! Iowa corn farmers work hard to raise their corn crop each year and Iowa Corn works hard on their behalf to expand the access to ethanol-blended fuel wherever you pull up to the pump. It’s a great way to remind consumers to fill up like the pros.”

More than 1,500 Iowa Corn Growers Association members had the chance to hear from Iowa Governor Kim Reynolds, U.S. Congressman David Young, U.S. Congressman Dave Loebsack, Iowa Secretary of Agriculture Mike Naig and Iowa Deputy Secretary of Agriculture Julie Kenny.



Agribusiness Helping Students and Teacher with Food Education

The Iowa Agriculture Literacy Foundation (IALF) helps educate students across Iowa understand where their food and fiber come from and how agriculture plays such an important role in the state's economy. For a fifth year, Corteva Agriscience, Agriculture Division of DowDuPont, will be supporting these efforts for students to learn about food, science, and career options through agriculture.

Through this donation, Corteva Agriscience will be supporting teachers' professional development workshops, student publications, lesson plan development, STEM festivals, a lending library, and other events and activities focused on increasing agriculture literacy.

"The new Iowa social studies educational standards that teachers are responsible have agriculture and farming written into them," said Will Fett, executive director of IALF. "Agriculture can make learning core subject areas very practical. Nearly 1 in 5 jobs in Iowa is in the agriculture industry. We are helping prepare students to one day hopefully step into a career in the agricultural industry."

Agriculture in the Classroom helps teachers connect core subject matter with agriculture by providing real world examples for their students. This K-12 program helps students understand the value and source of agriculture as it affects quality of life. This includes the science of food production, understanding how agriculture and the environment are intertwined, and how we can continue to improve agriculture practices to feed an ever-increasing world population.

"Food production and the agricultural economy is important to Iowans and Iowa-based businesses. Students and teachers will hopefully understand the vital role of agriculture in our economy," said Morgan Hammes, Pioneer communication specialist. "Supporting initiatives like this is important to us. We want bright, passionate, well-educated students to step into roles of science, technology, engineering, and of course, agriculture."



NAIG TO VISIT 12 COUNTIES JULY 10-14

Iowa Secretary of Agriculture Mike Naig today announced that he will be making stops in Union, Madison, Grundy, Butler, Chickasaw, Winneshiek, Delaware, Boone, Marshall, Calhoun, Webster and Wright Counties on July 10-14.

The details of the visits follow here:

Tuesday, July 10, 2018
Union County – 1:30 p.m., tour ZFS Creston, LLC, 1310 E. Howard St., Creston
Madison County – 4:00 p.m., tour Covered Bridges Winery, 2207 170th Trail, Winterset

Wednesday, July 11, 2018
Grundy County – 10:30 a.m., tour Environmental Lubricants Manufacturing (ELM), 311 B Ave., Grundy Center
Butler County – 12:00 p.m., tour Unverferth Manufacturing, 27612 Temple Ave., Shell Rock
Chickasaw County – 2:00 p.m., tour Five Star Cooperative, 1949 N. Linn Ave., New Hampton

Thursday, July 12, 2018
Winneshiek County – 10:00 a.m., visit the Winneshiek County Fair, 900 E Main St., Decorah
Delaware County – 2:30 p.m., visit the Delaware County Fair, 200 E. Acers St., Manchester

Friday, July 13, 2018
Boone County – 10:00 a.m., participate in the ISU Monarch Conservation Summit and Field Day, 1928 240th St., Boone
Marshall County – 12:00 p.m., visit the Marshall County Fair, 1308 E Olive St, Marshalltown

Saturday, July 14, 2018
Calhoun County - 1:00 p.m., visit the Calhoun County Fair, 412 High St., Rockwell City
Webster County – 3:00 p.m., visit the Webster County Fair, 22770 Old Hwy 169, Fort Dodge
Wright County – 5:30 p.m., visit the Wright County Fair, 901 SE 1st St., Eagle Grove



Attend the 4R Plus field day to improve profitability, stewardship

The Iowa Soybean Association (ISA) is hosting a 4R Plus field day that could help farmers improve their profitability, yields and have a positive impact on the environment.

The field day will be held July 31, from 9:30 a.m. to 2:45 p.m. at the Iowa State University (ISU)  Extension and Outreach Field Extension Education Laboratory (FEEL) Farm, 1928 240th St, Boone. Farmers, agronomists and other stakeholders will have the opportunity to hear from experts who will present ways to use the 4Rs of nutrient management — applying the right source, at the right rate, at the right time and in the right place.

The “plus” part of the program addresses how conservation practices coupled with good nutrient management can help farmers further improve their soil health and water quality. The goal is to achieve maximum profitability, yields and environmental stewardship.

“This is a very important field day for Iowa farmers, as it will address the latest advances in nutrient management and soil and water conservation,” said Scott Nelson, ISA On-Farm Network® director. “Farmers will leave this event with lots of ideas on how to improve profitability on their farms as well as protect soil and water.”

The event is free, with lunch provided. Attendees participating the whole day can receive six continuing education credits (CEUs) toward their certified crop adviser (CCA) certification.

The field day will feature six speakers — two ISU scientists, two ISA experts and two farmers — who will share their research and experiences:
-    Scott Nelson, ISA On-Farm Network® director: 4Rs of nitrogen management.
-    Antonio Mallarino, ISU professor of soil fertility and nutrient management: 4Rs of phosphorous and potassium research.
-    Steve Killpack, a farmer from Neola: Insights into the profit-improving practice of variable rate nitrogen.
-    Rick Cruse, ISU agronomy professor and director of the Iowa Water Center: Practices that can help reduce soil erosion from Iowa fields.
-    Keegan Kult, an ISA environmental scientist: Edge-of-field practices that can help prevent nutrient loss.
-    Dean Sponheim, a farmer from Nora Springs: Twenty years of struggles and eventual solutions to implementing conservation practices.

“I’m going to try and save other farmers a lot of headaches and let people know about the practices that will work in multiple areas of the state,” Sponheim said. “What we’re doing dovetails into the 4Rs and applies to all of them. There are things farmers have been doing that work for conservation and economic reasons.”

This event is sponsored in part by The Fertilizer Institute, Mosaic Fertilizer, the Iowa Agriculture Water Alliance, 4R Plus and the Iowa Soybean Association. Space is limited to the first 150 registrants. To sign up, email Sue Heath: sheath@iasoybeans.com.

To learn more about ISA, go to www.iasoybeans.com. 



May Beef Exports Shatter Value Record; Pork Exports Trend Lower

U.S. beef exports set a new value record in May while also increasing significantly year-over-year in volume, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). May pork exports were lower than a year ago, though January-May totals for U.S. pork remained ahead of last year’s pace.

Beef export volume was 117,871 metric tons (mt) in May, the sixth-largest on record, valued at a remarkable $722.1 million, which surpassed the previous monthly high (March 2018) by a healthy 4 percent and was 24 percent higher than a year ago. Through the first five months of 2018, beef exports were up 10 percent in volume to 547,157 mt while export value was $3.32 billion, 21 percent above last year’s record pace.

Exports accounted for 13.6 percent of total beef production in May, up from 13 percent a year ago. For muscle cuts only, the percentage exported was 11.1 percent, up from 10 percent last year. For January through May, exports accounted for 13.5 percent of total beef production and 10.9 percent for muscle cuts – up from 12.8 percent and 10 percent, respectively, last year.

Beef export value averaged $313.39 per head of fed slaughter in May, up 18 percent from a year ago. The January-May average was $317.69 per head, also up 18 percent.

Following a record performance in April, May pork export volume was 217,209 mt, down 2 percent from a year ago and reflecting smaller exports of variety meats. Export value was $562.5 million, down 3.5 percent. For January through May, pork export volume was still 3 percent ahead of last year’s record pace at 1.08 million mt, while value increased 6 percent to $2.85 billion.

Exports accounted for 27.8 percent of total pork production in May, down from 29.5 percent a year ago, while the percentage of muscle cuts exported fell about one percentage point to 24 percent. For January through May, the percentage of total production exported was slightly below last year at 27.5 percent, while the percentage of muscle cuts exported increased slightly to 23.7 percent.

May pork export value averaged $55.05 per head slaughtered, down 6 percent from a year ago. The January-May per-head average was $55.57, up 2 percent from last year.

Japan, Korea lead the way as global demand for U.S. beef continues to climb
Japan and South Korea continue to be the pacesetters for U.S. beef export growth. In May, export volume to Japan totaled 30,117 mt (up 19 percent from a year ago) valued at $196.8 million (up 22 percent and the highest since August 2017). Through May, exports to Japan were up 4 percent from a year ago in volume at 128,207 mt while value increased 13 percent to $822.9 million. This included a 6 percent increase in chilled beef volume to 61,178 mt, valued at $488 million (up 18 percent).

May exports to Korea were up 46 percent from a year ago in volume (20,781 mt) and jumped 64 percent in value to a record $146.2 million. For January through May, exports to Korea climbed 34 percent to 91,875 mt, valued at $647.3 million – 49 percent above last year’s record pace. Chilled beef exports to Korea totaled 20,365 mt (up 30 percent) valued at $196 million (up 41 percent).

“Despite the intense competition U.S. beef faces in Japan and Korea, these markets continue to display a terrific appetite for a growing range of cuts,” said USMEF President and CEO Dan Halstrom. “Beef items that are traditionally popular in Asia continue to perform and other items more suitable for thick-cut steaks and barbecue concepts are gaining more traction, resulting in exceptional growth opportunities. But the enthusiasm for U.S. beef extends well beyond these two leading markets, and that’s how exports have reached this record-breaking pace.”

For January through May, other highlights for U.S. beef include:
-    In Mexico, exports were up 4 percent in volume (98,900 mt) and 13 percent higher in value ($427.9 million). Mexico is a critical market for U.S. rounds, shoulder clods and other muscle cuts which are typically undervalued in the U.S. market. It is also the leading destination for U.S. beef variety meat exports, which increased 15 percent from a year ago in value ($98.9 million) despite a 2 percent decline in volume (43,479 mt).
-    Exports to China/Hong Kong increased 20 percent in volume (57,186 mt) and 47 percent in value to $442.2 million. May exports to China were the largest (834 mt) since the market opened in June of last year, pushing the January-May total to 3,133 mt valued at $28.7 million. However, effective July 6, China’s import duty rate on U.S. beef increased from 12 percent to 37 percent. The higher tariff will make it difficult for end-users to profitably utilize U.S. beef, especially with U.S. beef already priced at a premium compared to imports from other suppliers and with Australian beef subject to a duty of just 7.2 percent through the China-Australia Free Trade Agreement.
-    Coming off a record performance in 2017, beef exports to Taiwan continue to gain momentum. Exports were up 31 percent from a year ago in volume (22,127 mt) and 43 percent higher in value ($209.9 million). Chilled exports increased 39 percent in volume (9,272 mt) and 52 percent in value ($116 million), as U.S. beef captured 74 percent of Taiwan’s chilled beef market.
-    More reliable access to Indonesia has helped bolster beef exports to this promising market, with volume increasing 52 percent from a year ago to 6,247 mt and value nearly doubling to $28.7 million. Due in part to the United States successfully challenging Indonesia’s import restrictions at the World Trade Organization, U.S. beef now faces fewer obstacles and a more consistent regulatory environment. Indonesia’s strong performance and solid growth in the Philippines helped push exports to the ASEAN region 17 percent higher in volume (18,472 mt) and 28 percent higher in value ($102.4 million).
-    Led by strong growth in Guatemala, Costa Rica and Panama, exports to Central America jumped 21 percent in volume (5,436 mt) from a year ago and 22 percent in value ($30.6 million).

Pork exports still ahead of last year’s record pace, but will be tested by higher tariffs
Mexico’s retaliatory duties on U.S. pork took effect in June, so January-May results were not directly impacted. May exports to Mexico increased 3 percent from a year ago in volume (70,589 mt) but slipped 11 percent in value to $115.6 million. Through the first five months of 2018, exports to Mexico were 6 percent above last year’s record volume pace at 353,264 mt, with value up 2 percent to $621 million. On June 5, Mexico imposed a 10 percent duty on fresh/frozen pork muscle cuts from the United States, and the rate increased to 20 percent on July 5. Also in June, Mexico imposed a 15 percent duty on U.S. pork sausages and a 20 percent duty on some prepared hams (these rates did not increase July 5) and opened a duty-free quota aimed at attracting imports from non-U.S. suppliers.

Pork exports to the China/Hong Kong region were well below year-ago levels in May, due in part to the additional 25 percent tariff imposed by China on April 2 (the increase does not apply to product entering Hong Kong). May exports to China/Hong Kong were 34,191 mt, down 31 percent from a year ago, while export value dropped 25 percent to $79.9 million. For January through May, exports to China/Hong Kong were 18 percent below last year’s pace in volume (187,439 mt) and down 6 percent in value to $436.4 million. Exports to China will face an even steeper challenge in the second half of 2018, as China recently hiked the duty rate on U.S. pork by another 25 percent. This means U.S. pork cuts and pork variety meat entering China now face a duty rate of 62 percent, compared to 12 percent for China’s other suppliers, including the European Union, Brazil and Canada.

“It is unfortunate that U.S. pork is caught in the crosshairs of a dispute that has nothing to do with pork trade,” Halstrom said. “USMEF is focusing on the factors we can control by partnering with U.S. packers and exporters to make every effort to defend our market share and protect our business in Mexico and China. USMEF also consistently stresses the importance of diversifying our export markets and expanding U.S. pork’s footprint into emerging markets, and those efforts are more critical than ever.”

January-May highlights for U.S. pork include:
-    As an outstanding destination for U.S. pork for further processing and value-added items destined for the home meal replacement sector, exports to South Korea continue to achieve impressive growth. May exports climbed 44 percent from a year ago in volume (22,447 mt) and 47 percent in value ($64.4 million). For January through May, exports to Korea totaled 117,335 mt (up 44 percent), valued at $340.6 million (up 54 percent).
-    Exports to leading value market Japan were 1 percent below last year in volume (167,294 mt) and steady in value ($689.6 million). This included a 4 percent decrease in chilled pork, with value down slightly at $424 million.
-    Surging demand in Colombia and solid growth in Peru pushed pork exports to South America up 26 percent from a year ago in both volume (50,993 mt) and value ($125.4 million). Argentina officially opened to U.S. pork in April but it has taken some time for exporters to complete various regulatory processes. USMEF is optimistic that shipments to Argentina can begin soon.
-    Exports to Australia and New Zealand were up 8 percent in volume (36,184 mt) and were 11 percent higher in value ($107 million) as the United States has gained market share in Oceania, an increasingly important market for U.S. hams.
-    Led by strong year-over-year growth in Honduras, Panama, El Salvador and Guatemala, pork exports to Central America climbed 18 percent from a year ago in volume (33,590 mt) and 20 percent in value ($79.7 million). Coming off a record year in 2017, exports to all seven Central American nations achieved double-digit growth in the first five months of 2018.
-    Exports to the Dominican Republic, which were also record-large in 2017, increased 19 percent in both volume (19,102 mt) and value ($42.4 million) through May. For the Caribbean region, exports were up 13 percent in volume to 25,667 mt and 14 percent in value to $60.8 million.
-    With solid growth in the Philippines and Vietnam offsetting lower shipments to Singapore, pork exports to the ASEAN region increased 12 percent in volume (20,630 mt) and 24 percent in value ($57.4 million). Pork variety meat exports to the ASEAN, which are especially important when shipments to China are declining, increased 50 percent in volume (6,827 mt) and 58 percent in value ($12.5 million).

May lamb exports largest since 2015
Exports of U.S. lamb were 998 mt in May, up 57 percent from a year ago and the largest volume since December 2015. Export value was up 10 percent to $1.8 million. For January through May, exports increased 43 percent in volume (4,455 mt) and 15 percent in value ($9.1 million). While much of this growth was driven by larger variety meat exports to Mexico, muscle cut exports increased year-over-year to the Caribbean, the United Arab Emirates, Canada, Singapore, the Philippines and Taiwan.



American Drivers Pass 5 Billion Miles on E15

Growth Energy announced today that American drivers have logged 5 billion miles on E15. The latest milestone was reached in the midst of Reid Vapor Pressure (RVP) restrictions on the sale E15 fuel across most of the country. During summer months consumers only have access to E15 in Reformulated Gasoline (RFG) markets or if they drive flex fuel vehicles.

“When we give consumers a better option at the pump, they choose E15 again and again,” said Growth Energy CEO Emily Skor. “That’s why Americans have surpassed more than 5 billion miles on E15, which provides unrivaled value for their engines, the environment, and their wallets.”

Working hand-in-hand with Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, Growth Energy has doubled the number of E15 stations four years in a row to include 1,400 stations across 30 states. In addition to the stores currently selling E15, Growth Energy and Prime the Pump have secured commitments for more than 2,800 retail sites that will offer E15 by 2021, generating approximately 350 million new ethanol gallons annually.

“To keep this incredible momentum, a year-round RVP fix is crucial,” said Skor. “E15 retailers face prohibitive costs each year just to relabel every pump around RVP season, while consumers lose options at the pump when gas prices are highest, and our rural economy suffers.”

RVP relief now would lift the rural economy out of the worst crisis in a generation and would put the biofuels industry on the path to an additional 1.3 billion gallons of ethanol demand within five years.



CWT-Assisted Export Sales Contracts Reach 11.8 Million Pounds in June

CWT helped member cooperatives secure 44 contracts to sell 5.88 million pounds of American-type cheeses, 194,007 pounds of butter and 5.69 million pounds of whole milk powder to customers in Asia, Central America, the Middle East, North Africa, Oceania and South America. The product will be shipped to customers in 15 countries in six regions of the world during the months of June-December 2018.

These contracts bring the 2018 total of CWT-assisted product sales contracts to 40.25 million pounds of cheese, 11.23 million pounds of butter and 15.87 million pounds of whole milk powder. These transactions will move overseas the equivalent of 740.06 million pounds of milk on a milkfat basis.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



 New Spanish-language Resources on Drug Residue Management Now Available

To create relevant on-farm resources for Hispanic farm workers not fluent in English, the National Dairy Farmers Assuring Responsible Management (FARM) Program is releasing two Spanish-language tools: The 2018 Spanish Drug Residue and Prevention Manual is now available for download and the 2018 Spanish Pocket Guide is available for purchase in the FARM Store.

The 2018 edition of the FARM Program’s Milk and Dairy Beef Drug Residue Prevention Manual is the primary educational tool for dairy farm managers on the judicious and responsible use of antibiotics, including the avoidance of drug residues in milk and meat. The manual and pocket guide are resources that allow dairies to review what antibiotics are approved for use in dairy cattle, and can also be used as an educational tool for farm managers as they develop best management practices necessary to avoid milk and meat residues on their operations.

The manual is updated on annual basis in partnership with Merck Animal Health, Elanco Animal Health, Zoetis, Merial, Charm Sciences Inc. and National Beef Quality Assurance.



NCBA on Supreme Court Pick Kavanaugh: "Opportunity to Solidify" Court, "Clears Path for Narrower WOTUS Definition

National Cattlemen’s Beef Association Chief Environmental Counsel Scott Yager tonight released the following statement in response to President Trump's nomination of Judge Brett Kavanaugh to the U.S. Supreme Court:

“President Trump’s nomination of Judge Kavanaugh presents an opportunity to solidify the conservative tilt of the U.S. Supreme Court. The retiring Justice Kennedy was long considered a ‘swing vote’ –he voted with the liberal wing of the Court almost as many times as he sided with the conservative Justices.

“Justice Kennedy, in fact, is partly to blame for the Waters of the U.S. (WOTUS) quagmire because he drafted his own opinion (creating the 4-1-4 split) and endorsed the ‘significant nexus’ test in the 2006 Rapanos decision. Replacing Justice Kennedy with a solidly conservative 5th vote will change the highest court in the land for many years to come and clears the path for a narrower WOTUS definition, as supported by the Trump Administration and NCBA, to be upheld by the Supreme Court.”



Abundance Feedstuffs Lend Strength to Calf Prices
Stephen R. Koontz, Dept of Ag and Resource Economics - Colorado State University

Friday's USDA NASS Acreage report showed 89.1 million acres of corn planted and 89.6 million acres of soybeans. The corn acreage is an increase from the 88.0 million acres of intentions from the March Prospective Plantings report. The record cold April transitioned into a record warm May for most of the upper Midwestern states. The slow start to planting finished on schedule and crop conditions are largely good to excellent. Harvest corn futures have decreased almost $1 per bushel and cow-quality hay is clearly abundant. The only places in the country without much pasture are south and west of southwestern Kansas. The weakening feed market has translated into strengthening calf prices relative to the fed cattle and beef market. The overall protein market outlook is much the same as the beginning of summer: there is a lot of protein to come to market through the summer and fall - and no end to the potential trade gymnastics - but calf market outlook is holding strong largely because of cheapening feed.

The higher planted acreage and good feed crop conditions were largely revealed through June. The DEC18 corn contract decreased from the low-$4s to the mid-$3s the last half of the month. Therefore, the Acreage report was probably not much of a surprise. Further, it is the week of July 4th and the majority of the corn crop will be made at the end of this week - or for certain next. It seems unlikely there will be sufficient weather surprises for the rest of the summer to strengthen the feedstuffs markets. If anything there may be delayed maturity problems with the excellent moisture in the upper Midwest and eastern Corn Belt. This will be revealed much closer to harvest and I anticipate these to be minor and local. In the end this is good news for cow-calf producers. Risk management positions might be lightened while options still have considerable time-value.

However, longer term caution is still warranted. Cattle on feed numbers, slaughter weights, and competing meat volumes all remain substantial. Beef trade volumes are strong but one wonders if this is filling the pipeline early to avoid problems later. For the short-term though, the market is revealing the abundant supplies of feedstuffs.