Wednesday November 21 Cattle on Feed + Ag News

NEBRASKA CATTLE ON FEED UP 3 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.59 million cattle on feed on November 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 3 percent from last year.

Placements during October totaled 650,000 head, down 4 percent from 2017.

Fed cattle marketings for the month of October totaled 480,000 head, up 10 percent from last year. Other disappearance during October totaled 10,000 head, down 5,000 head from last year.



IOWA CATTLE ON FEED REPORT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 700,000 head on November 1, 2018, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was up 1 percent from both October 1, 2018 and November 1, 2017. Iowa feedlots with a capacity of less than 1,000 head had 405,000 head on feed, up 1 percent from last month but down 17 percent from last year. Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,105,000 head, up 1 percent from last month but down 6 percent from last year.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during October totaled 107,000 head, up 20 percent from last month but down 25 percent from last year. Feedlots with a capacity of less than 1,000 head placed 52,000 head, up 93 percent from last month but down 55 percent from last year. Placements for all feedlots in Iowa totaled 159,000 head, up 37 percent from last month but down 38 percent from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during October totaled 93,000 head, up 24 percent from last month but down 6 percent from last year. Feedlots with a capacity of less than 1,000 head marketed 45,000 head, down 10 percent from last month and down 36 percent from last year. Marketings for all feedlots in Iowa were 138,000 head, up 10 percent from last month but down 18 percent from last year. Other disappearance from all feedlots in Iowa totaled 6,000 head.



United States Cattle on Feed Up 3 Percent
   
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on November 1, 2018. The inventory was 3 percent above November 1, 2017.

On Feed - By State
                         (1,000 hd   -  % Nov 1 '17)
Colorado ......:        1,020          104     
Iowa ............:        700              101   
Kansas .........:       2,360           103     
Nebraska .....:       2,590           103     
Texas ...........:       2,680           102      

Placements in feedlots during October totaled 2.25 million head, 6 percent below 2017. Net placements were 2.18 million head. During October, placements of cattle and calves weighing less than 600 pounds were 640,000 head, 600-699 pounds were 525,000 head, 700-799 pounds were 450,000 head, 800-899 pounds were 363,000 head, 900-999 pounds were 180,000 head, and 1,000 pounds and greater were 90,000 head.

Placements by State
                            (1,000 hd   -   % Oct '17)
Colorado ......:             195           100      
Iowa ............:             107            75       
Kansas .........:             405            94   
Nebraska .....:             650            96    
Texas ...........:             465            92      

Marketings of fed cattle during October totaled 1.89 million head, 5 percent above 2017.  Other disappearance totaled 69,000 head during October, 5 percent below 2017.

Marketings by state
                            (1,000 hd   -   % Oct '17)
Colorado ......:      150           100       
Iowa .............:      93            94      
Kansas ..........:      395           105      
Nebraska ......:      480           110     
Texas ............:      430            97       



LENRD Board approves applications for new irrigated acres

Earlier this fall, landowners within the Lower Elkhorn Natural Resources District (LENRD) boundaries, had an opportunity to apply for new irrigated acres for 2019.

LENRD Assistant General Manager, Brian Bruckner, said, “The board voted to accept applications for standard variances from selected portions of the District.  We received 145 applications for new irrigated acres during the sign-up period, which was open between September 4th and October 3rd, 2018.”

The board voted at their November meeting to approve up to 2428 acres in the Hydrologically Connected (10/50 Area), and to approve up to 2515 new acres in the Non-Hydrologically Connected (Non 10/50 Area), under the district’s standard variance process.  Recommendations for approval were determined by using the variance scoring process which has been utilized by the District on previous occasions.  Eligible applications are scored and ranked from highest to lowest, and approvals made until the available acres have been allocated.

Bruckner continued, “District staff will be generating letters to all applicants to inform them on the status of their request (whether they were approved or denied), with those letters being generated and mailed next week .”  After the landowners have been properly notified, the list of applicants who were approved may be made available by submitting a public records request.

In other action, the board approved the allocations for the designated Quantity Management Subareas across the district for 2019.  Bruckner, said, “Each year, the board must determine the annual groundwater allocation amounts for the Wayne and Madison County Quantity Management Subareas for the upcoming crop year.”  The board voted to set the 2019 allocation amounts at:  18 acre-inches per irrigated acre for gravity/flood irrigation systems, 13 acre-inches per irrigated acre for subsurface drip irrigation systems, and 14 acre-inches per irrigated acre for all other irrigation systems in the Eastern Madison County Quantity Subarea, and 17 acre-inches per irrigated acre for gravity/flood irrigation systems, 12 acre-inches per irrigated acre for subsurface drip irrigation systems, and 13 acre-inches per irrigated acre for all other irrigation systems in the Wayne County Quantity Subarea.

In other business, the board approved 9 Community Forestry Incentive applications for a total cost of $32,867.95.  The communities receiving grants this year include:  Madison, Norfolk, Pender, Pierce Public Schools, Pilger, Wakefield, West Point, West Point Public Schools, and Wisner.

The board also voted to schedule a public hearing to be conducted on December 6, 2018 at 7 p.m. to receive comments and testimony from the public on Rules 1 and 17 of the District’s Groundwater Management Area Rules and Regulations.  The public hearing will be at the LENRD office at 1508 Square Turn Boulevard in Norfolk.



FSA County Committee Election Ballots Mailed

Nebraska Farm Service Agency (FSA) State Executive Director Nancy Johner announced the U.S. Department of Agriculture (USDA) began mailing ballots to eligible agricultural producers for the 2018 FSA county committee elections. Producers must return ballots to their local FSA offices by Dec. 3 to ensure their vote is counted.

"County committee members represent the farmers, ranchers and foresters in our Nebraska communities," said Johner. "Producers elected to these committees have always played a vital role in local agricultural decisions. It is a valued partnership that helps us better understand the needs of the farmers and ranchers we serve."

Nearly 7,700 FSA county committee members serve FSA offices nationwide. Each committee has three to 11 elected members who serve three-year terms of office. One-third of county committee seats are up for election each year. County committee members apply their knowledge and judgment to help FSA make important decisions on its commodity support programs, conservation programs, indemnity and disaster programs, emergency programs and eligibility.

Johner said producers must participate or cooperate in an FSA program to be eligible to vote in the county committee election. Farmers and ranchers who supervise and conduct the farming operations of an entire farm, but are not of legal voting age, may also be eligible to vote.

Farmers and ranchers began receiving their ballots earlier this month. Ballots include the names of candidates running for the local committee election. Voters who did not receive a ballot can pick one up at their local FSA office. Ballots returned by mail must be postmarked no later than Dec. 3. Newly elected committee members will take office Jan. 1.



Upcoming Nebraska Farmers Union Convention Agenda Highlights Announced

“Eyes on the Horizon, Boots in the Soil” is the theme for the 105th annual Nebraska Farmers Union (NeFU) state convention.  John Hansen, NeFU President said, “We made the decision to move our state conventions around the state to encourage more of our statewide membership to participate.  We are excited to be in Lincoln for the first time in decades. The Marriott Cornhusker is an exceptional facility.  On the business side, our delegates and members will do the nuts and bolts work of electing our officers, selecting our delegates to the National Farmers Union (NFU) Convention, and setting our policy.  Our theme reflects our focus on creating new economic opportunities for farm and ranch families while maintaining our core values and tie to the land.”

Friday morning highlights include hearing from new Nebraska Ethanol Board Administrator Sarah Caswell and retiring Administrator Todd Sneller discuss Nebraska’s cutting edge case study on the use of 30% ethanol in non-flex fuel state vehicles.  In addition, Caswell and National Farmers Union (NFU) Senior Vice-President Rob Larew of Public Policy will discuss federal RFS (Renewable Fuels Standards) issues that are critical to corn utilization and expanded ethanol use.  Larew will be the Friday noon luncheon keynote speaker as he presents NFU’s year of legislative efforts and issues.

Friday afternoon will feature:
·         Three chapter authors of the book “In Defense of Farmers:  the Future of Agriculture in the Shadow of Corporate Power” scheduled for release spring 2019.
·         Five Nebraska Public Power officials on the challenges and opportunities facing Nebraska Public Power.
·         A panel of newly elected and current state senators on issues facing the upcoming legislative session.

The Friday evening banquet keynote speaker will be well known author Dr. John Ikerd, Professor Emeritus of Agricultural Economics, University of Missouri. The entertainment will feature “The Audacious Nebraska Descendants of DeWitty” documentary re-enactors and traveling photo exhibit.  “We are extremely fortunate to have Dr. Ikerd as our keynote speaker.  We think our members will really enjoy learning about the Descendants of DeWitty.  The photo exhibits depict scenes from black homesteaders who lived in the Sandhills of Nebraska between Valentine and Thedford beginning in 1904.  The re-enactors will bring those photos, the courage of those homesteaders, and fascinating part of Nebraska homesteader history to life,” Hansen said.

Saturday morning representatives from the Nebraskans United for Property Tax Reform and Education coalition will share their perspectives on the challenges current state law places on small, medium, and large schools.  The Nebraskans United coalition’s goals are to adequately fund education while providing real property tax relief.  Speakers include:  Jordan Rasmussen- Center for Rural Affairs; Jack Moles, Executive Director-NE Rural Community Schools, Association; Dr. Mike Lucas, Superintendent of York Public Schools & STANCE (Schools Taking Action for NE children’s Education); Dr. Rob Winter, Executive Director-Greater NE Schools Association; Dr. Michael Dulaney, Executive Director-NE Council of School Administrators, and Al Davis, Board of Director, Independent Cattlemen of NE & NeFU.

Registration is $35 and begins at 8:00 a.m. Friday and Saturday mornings.  Convention begins at 9:00 a.m. Friday and 8:30 a.m. Saturday.  As always, all members and the public are welcome.  More information is available at:  www.nebraskafarmersunion.org or call (402) 476-8815.  Call (402) 474-7474 for room reservations.

The NeFU Convention room rate is $99 per night and includes a complimentary hot breakfast.



All-Time Record High for Red Meat and Pork Production

Commercial red meat production for the United States totaled 4.90 billion pounds in October according to USDA, up 6 percent from the 4.64 billion pounds produced in October 2017.

Beef production, at 2.43 billion pounds, was 5 percent above the previous year. Cattle slaughter totaled 2.96 million head, up 6 percent from October 2017. The average live weight was up 2 pounds from the previous year, at 1,363 pounds.

Veal production totaled 7.2 million pounds, 13 percent above October a year ago. Calf slaughter totaled 53,800 head, up 22 percent from October 2017. The average live weight was down 18 pounds from last year, at 232 pounds.

Pork production totaled 2.45 billion pounds, up 6 percent from the previous year. Hog slaughter totaled 11.6 million head, up 6 percent from October 2017. The average live weight was unchanged from the previous year, at 283 pounds.

Lamb and mutton production, at 13.1 million pounds, was up 10 percent from October 2017. Sheep slaughter totaled 199,800 head, 9 percent above last year. The average live weight was 131 pounds, up 2 pounds from October a year ago.

By State             (mill lbs. -  % Oct '17)
Nebraska ......:     734.4            103      
Iowa .............:     725.0            111      
Kansas ..........:     522.8            104      

January to October 2018 commercial red meat production was 44.4 billion pounds, up 3 percent from 2017. Accumulated beef production was up 3 percent from last year, veal was up 2 percent, pork was up 3 percent from last year, and lamb and mutton production was up 6 percent.



USDA Cold Storage Report October 2018 Highlights

Total red meat supplies in freezers on October 31, 2018 were down 1 percent from the previous month and down 1 percent from last year. Total pounds of beef in freezers were up 2 percent from the previous month and up 2 percent from last year. Frozen pork supplies were down 3 percent from the previous month and down 5 percent from last year. Stocks of pork bellies were down 12 percent from last month and down 17 percent from last year.

Total natural cheese stocks in refrigerated warehouses on October 31, 2018 were down slightly from the previous month but up 8 percent from October 31, 2017.  Butter stocks were down 19 percent from last month but up 6 percent from a year ago.

Total frozen poultry supplies on October 31, 2018 were down 9 percent from the previous month but up 4 percent from a year ago. Total stocks of chicken were down 2 percent from the previous month but up 8 percent from last year. Total pounds of turkey in freezers were down 21 percent from last month and down 4 percent from October 31, 2017.

Total frozen fruit stocks were up 18 percent from last month but down 2 percent from a year ago.  Total frozen vegetable stocks were up 5 percent from last month but down 7 percent from a year ago.



Weekly Ethanol Production for the week ended 11/16/2018.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.042 million barrels per day (b/d)—or 43.76 million gallons daily. That is down 25,000 b/d (-2.3%) from the week before for a 4-week low. Alternatively, the four-week average for ethanol production sustained a fourth week of increases, expanding to 1.059 million b/d for an annualized rate of 16.23 billion gallons.

Stocks of ethanol were 22.8 million barrels. That is a 3.0% drawdown from last week.

There were zero imports recorded after 37,000 b/d hit the books last week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of September 2018.)

Average weekly gasoline demand tapered 0.1% to 9.185 million barrels (385.8 million gallons) daily. This is equivalent to 140.81 billion gallons annualized. Refiner/blender input of ethanol lifted 0.2% to 928,000 b/d, equivalent to 14.23 billion gallons annualized.

Expressed as a percentage of daily gasoline demand, daily ethanol production decreased to 11.34%.



Skor Comments on Shimkus, Flores RFS Discussion Draft

Today, Growth Energy CEO Emily Skor issued a statement following the release of a Renewable Fuel Standard (RFS) discussion draft by U.S. Representatives John Shimkus (R-IL) and Bill Flores (R-TX), which would sunset the RFS:

“While we welcome any improvements to octane standards nationwide, this bill would turn back the clock on our nation’s commitment to renewable biofuels, completely undermining the benefits that consumers have come to expect from ethanol at the pump. Ethanol itself has a natural octane of 113 and a lower carbon content than the gasoline components it replaces. It is only through coupling a stable Renewable Fuel Standard with improvements to octane standards that consumers can continue to reap the increased engine efficiency, environmental benefits, and cost savings that ethanol provides.”

In April, Skor testified on the benefits of higher ethanol fuel blends before the U.S. House of Representatives Committee on Energy and Commerce Subcommittee on Environment hearing, “High Octane Fuels and High Efficiency Vehicles: Challenges and Opportunities.”



Anhydrous Leads Fertilizer Prices Higher Again

With one exception, retail fertilizer prices continued their trend of moving higher the second week of November 2018, according to retailers surveyed by DTN.

One fertilizer -- anhydrous -- was significantly higher -- 5% higher compared to last month. The nitrogen fertilizer had an average price of $519 per ton.

However, none of the remaining six fertilizers that were higher were up significantly. DAP had an average price of $500/ton, MAP $530/ton, potash $368/ton, urea $407/ton, UAN28 $245/ton, and UAN32 $287/ton.

One fertilizer was slightly lower compared to a month prior. 10-34-0 was just slightly lower with an average price of $457/ton. This marks the first week in which there has been a lower fertilizer price since the first week of September 2018, a period of 10 weeks.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.32/lb.N, UAN28 $0.44/lb.N, and UAN32 $0.45/lb.N.

All eight of the major fertilizers now are higher compared to last year with prices shifting up in recent months. UAN32 is 6% higher, potash is 8% more expensive, both 10-34-0 and UAN28 are 13% higher, both DAP and MAP are 15% more expensive, urea is 20% higher and anhydrous is now 27% more expensive compared to last year.



Farmers National Co: Farmland Sales Activity Picking Up

Interest in selling agricultural land is picking up among landowners. The amount of land that Farmers National Company has listed for sale is up 21 percent compared to last year at this time.

"Most of the sales are coming from individuals or ownership groups who are deciding that now is the time to sell," said Randy Dickhut, senior vice president of real estate operations at Farmers National Company. "They may have recently inherited the land or have owned it for years, but sellers have watched the land market and some are deciding to take advantage of the still historically good land prices. Some sellers are thinking that there is more downside risk in land prices than upside potential, so for them, now is the time to sell."

Selling activity is also picking up at Farmers National Company due to its recognized success in selling land. Extensive local, regional, and national marketing by Farmers National Company reaches buyers looking for land and creates successful sales for sellers.

"Despite the slower land market the past few years, Farmers National Company's real estate sales have grown each year including a solid 5 percent increase in sales volume this year," Dickhut said.

Land buyers are generally more cautious right now causing some land brokerages to experience more no-sale auctions that don't achieve the reserve price during the public auction session.



Farmweld Rep Visits Bogotà, Colombia - Rapidly Growing Pork Market
   
U.S. pork officials are always looking to expand exports into new markets, so it was an easy decision when the National Pork Producers Council, National Pork Board and U.S. Meat Export Federation (USMEF) collaborated to arrange an international trip to Colombia for 14 delegates from the Pork Leadership Institute. All three organizations support pork producers and pork consumption and have had a hand in fostering U.S. exports in this rapidly growing pork market.

In the two short days, U.S. representatives met with numerous Colombian officials, including Colombia’s elected representatives and senators, foreign trade representatives, market economists and trade experts. The group toured the Colombian Congress, a large wet market, the country’s largest packing plant, a retail supermarket that sold U.S. pork ribs and loins and restaurants that also sold U.S. pork.

“The wet market was like a farmer’s market on steroids,” said Geri Wohltman, Farmweld Marketing Director. “Vendors sold anything from fruits to meat to lottery tickets and herbs.” Of particular interest were the meat vendors, who’s displays ranged from cutting up carcasses onsite to whole roasted hogs sold as a type of pulled pork that was consumed at the market for lunch.

“It was a testament to free-trade agreements that we were able to eat at a restaurant in Bogotà, Columbia and consume the healthy, safe product we know and love in the United States,” said Geri Wohltman.

Meat consumption, of all types, is rising in Colombia as the country’s middle class continues to grow. Fortunately for U.S. pork producers, pork is a preferred meat and is leading the charge.

“The Colombian market not only imports ribs, loins and hams from the United States, but also variety meats,” said Geri Wohltman. “With U.S. exports to China declining in 2018, U.S. pork producers need markets for variety meats as well as higher-value cuts.”



Deere Announces Fourth-Quarter Net Income of $785 Million and $2.368 Billion for Year

Deere & Company reported net income of $784.8 million for the fourth quarter ended October 28, 2018, or $2.42 per share, compared with net income of $510.3 million, or $1.57 per share, for the quarter ended October 29, 2017. For fiscal 2018, net income attributable to Deere & Company was $2.368 billion, or $7.24 per share, compared with $2.159 billion, or $6.68 per share, in 2017.

Affecting results for the fourth quarter and full year of 2018 were adjustments to the provision for income taxes due to the enactment of U.S. tax reform legislation on December 22, 2017 (tax reform). Fourth-quarter results included a favorable net adjustment to income taxes of $37 million, while the full year reflected an unfavorable net income tax expense of $704 million. Without these adjustments, net income attributable to Deere & Company for the fourth quarter and full year would have been $748 million, or $2.30 per share, and $3.073 billion, or $9.39 per share, respectively. (For further information, refer to the appendix on the non-GAAP financial measures and Note 2 in the "Condensed Notes to Consolidated Financial Statements" accompanying this release.) 

Worldwide net sales and revenues increased 17 percent, to $9.416 billion, for the fourth quarter and rose 26 percent, to $37.358 billion, for the full year. Net sales of the equipment operations were $8.343 billion for the quarter and $33.351 billion for the year, compared with respective totals of $7.094 billion and $25.885 billion in 2017.

"John Deere has concluded another solid year in which the company benefited from a further improvement in market conditions and a favorable customer response to its lineup of advanced products," said Samuel R. Allen, chairman and chief executive officer. "In the fourth quarter, farm machinery sales in the Americas made further gains while construction-equipment sales continued to move higher, helped in part by our Wirtgen road-building business, whose financial contribution has exceeded our original forecasts. At the same time, the company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and ongoing cost management." 

Added Allen, "The company's strong performance has allowed for significant investment in new products, services, and technologies. In addition, the company in 2018 returned almost $1.8 billion to shareholders in higher dividends and the repurchase of over $900 million of stock. These steps reflect the strength of the company and our optimism about its future prospects."



Monsanto Appeals Roundup Verdict

(AP) -- Agribusiness giant Monsanto on Tuesday appealed a $78 million verdict in favor of a dying California man who said the company's widely used Roundup weed killer was a major factor in his cancer.

The company filed a notice of appeal in San Francisco Superior Court challenging a jury verdict in favor of DeWayne Johnson. In August, the jury unanimously found that Roundup caused Johnson's non-Hodgkin's lymphoma and awarded him $289 million.

Last month, Judge Suzanne Bolanos slashed that award to $78 million. Monsanto had sought a new trial or judgment in its favor.

"We continue to believe that the liability verdict and reduced damage award are not supported by the evidence at trial or the law," Bayer, which acquired Monsanto in June, said in a statement.

Bayer said none of the science presented at trial supported the conclusion that Roundup was a substantial cause of Johnson's cancer.

An email to a spokeswoman for Johnson's attorneys was not immediately returned.

Johnson, now 46, sprayed Roundup and a similar product at his job as a pest control manager at a San Francisco Bay Area school district, according to his attorneys.

He was diagnosed with non-Hodgkin's lymphoma in 2014 at 42, and his doctor testified that he has less than three years to live.

Monsanto is facing thousands of similar lawsuits that claim glyphosate -- the active ingredient in Roundup -- causes cancer.

Many government regulators have rejected a link between glyphosate and cancer. Monsanto says hundreds of studies have established that glyphosate is safe.