Friday February 23 Cattle on Feed Report + Ag News

NEBRASKA CATTLE ON FEED DOWN 2 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.56 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 2 percent from last year. Placements during December totaled 410,000 head, down 11 percent from 2017. Fed cattle marketings for the month of December totaled 430,000 head, up 1 percent from last year. Other disappearance during December totaled 20,000 head, up 5,000 head from last year.



IOWA CATTLE ON FEED DOWN 1 PERCENT

Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 690,000 head on January 1, 2019, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 1 percent from both December 1, 2018, and January 1, 2018.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during December totaled 85,000 head, down 20 percent from last month and down 15 percent from last year.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during December totaled 92,000 head, down 12 percent from last month and down 6 percent from last year. Other disappearance from feedlots with a capacity of 1,000 or more head in Iowa totaled 3,000 head.



United States Cattle on Feed Up 2 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 January 1, 2019. The inventory was 2 percent above January 1, 2018. The inventory included 7.28 million steers and steer calves, down 1 percent from the previous year. This group accounted for 62 percent of the total inventory. Heifers and heifer calves accounted for 4.41 million head, up 6 percent from 2018.

On Feed, By State:   (1,000 hd  -  % Jan 1 '18)
Colorado ......:               1,010              104       
Iowa .............:               690                   99         
Kansas ..........:             2,330                 102         
Nebraska ......:             2,560                 98        
Texas ............:             2,730                103         

Placements in feedlots during December totaled 1.77 million head, 2 percent below 2018. Net placements were 1.69 million head. During December, placements of cattle and calves weighing less than 600 pounds were 445,000 head, 600-699 pounds were 460,000 head, 700-799 pounds were 402,000 head, 800-899 pounds were 285,000 head, 900-999 pounds were 90,000 head, and 1,000 pounds and greater were 85,000 head.

Dec '18 Placements by State                     
                          (1,000 hd  -  % Dec '17)
Colorado ......:         145           121    
Iowa .............:         85              85     
Kansas ..........:         395            99        
Nebraska ......:         410            89       
Texas ............:         410           106        

Marketings of fed cattle during December totaled 1.74 million head, 1 percent below 2017. Other disappearance totaled 75,000 head during December, 1 percent above 2017.

Dec '18 Marketings by State                          
                          (1,000 hd  -  % Dec '17)
Colorado ......:         140           104    
Iowa .............:          92            94      
Kansas ..........:         410           101     
Nebraska ......:         430           101      
Texas ............:         345            90       



THURSTON MFG FILES FOR BANKRUPTCY

Thurston Manufacturing Co., Thurston, Neb., has filed for voluntary Chapter 11.  The paperwork was filed in U.S. Bankruptcy Court in the state of Nebraska on January 23, 2019.

The maker of Blu-Jet branded farm equipment, Thurston Manufacturing also conducts business as Simonsen Iron Works, which it acquired in May 2013.

According to the court filing, the 20 largest unsecured claims who are not insiders are owed $1,235,715.



Ricketts Addresses USDA's 95th Ag Outlook Forum

Governor Pete Ricketts addressed the U.S. Department of Agriculture's (USDA) 95th Annual Agricultural Outlook Forum in Washington, D.C. His address came during a panel titled "The Evolving Regulatory Landscape and Adoption of Precision Agriculture."

During his address, Ricketts highlighted the opportunities biotechnology has created in Nebraska, and called for the federal and state governments to encourage innovation by creating a pro-growth regulatory climate.

Other panelists who joined Governor Ricketts included:
- Barbara Glenn, CEO of the National Association of State Departments of Agriculture
- Mitch Abrahamsen, Executive Vice President of Recombinetics
- Jack Bobo, Vice President of Intrexon



Frontier Coop & Midwest Farmers Cooperative Explore Unification Opportunities

After careful consideration, the Boards of Directors at two of Nebraska’s leading farmer-owned cooperatives have unanimously approved and signed a non-binding Letter of Intent (LOI). By signing the LOI, the boards of Frontier Coop and Midwest Farmers Cooperative have unanimously approved proceeding with a study that will enable them to explore in more depth the benefits of unifying the cooperatives.

The challenges of global competition, changing technologies, increased compliance and regulatory mandates, as well as an overall increase in the cost of doing business have created a need to continue to evolve the two companies. To remain sustainable in changing times, certain levels of growth are sometimes needed to meet the challenging and evolving future.

Board Chairman for Midwest Farmers Cooperative, Neil Stedman, sees value in pursuing the project. “This unification study will help us understand if working with Frontier Coop will provide us with the opportunities we need to support our membership and grow in this business environment,” said Stedman. “We are part of a dynamic industry that is constantly changing, as a result we need to be examining opportunities than can ensure our long-term relevancy to our patron owners, employees and industry partners.”

By agreeing to the LOI, the two businesses will now focus on examining the merits of combining the two cooperatives.

“We are excited to explore this opportunity with Midwest Farmers Cooperative and the benefits it could bring to our membership,” said Frontier Coop Board Chair Greg Sabata. “It is always important to bring growth to your business and be able to invest in your people and technology for better member services in the future.”

This unification of equals would potentially provide a solid foundation for the future and generate benefits for members, customers and employees in multiple areas. This includes strengthening member services, avoiding investment duplication and enhancing their ability to grow and compete.

The study phase, or due diligence, will begin shortly and is expected to wrap up later this spring. Once it is complete, the boards will assess the findings and determine if a unification would be beneficial to members of both cooperatives.

Members are encouraged to contact their Board members with any questions throughout the process.



Frontier Coop Offers Dicamba Application Trainings

Frontier Cooperative will be holding a series of meetings to help you get certified if you plan to use dicamba soybean products this year. Anyone who sprays or handles one of the Soybean dicamba products must be certified by the EPA before they can use these products on their farm.

Frontier Coop is teaming up with WinField United to offer this training. The training will be followed by a discussion about the adjuvants Frontier Coop offers, and why we believe they are the best fit for dicamba applications. This is also a great time for a refresher on best practices so you can achieve the results you expect from our products.

The training covers the following products: Monsanto’s XtendiMax® herbicide with VaporGrip® Technology; DuPont™ FeXapan™ herbicide plus VaporGrip® Technology and BASF’s Engenia® Herbicide.

The meeting dates are as follows: 
Tuesday, March 5: Genoa Community Center, Morning Session
Wednesday, March 6: Schuyler Oak Ballroom, Morning Session
Thursday, March 7: Wahoo Starlite Ballroom, Morning Session

The meeting Agenda is as follows:
9:00 - 9:20 a.m. Registration
9:30 - 11:00 a.m. Certification Training
11:15 a.m. - 12:00 p.m. Adjuvant Discussion & Recommendations
12:00 - 1:00 p.m. Complimentary Lunch

Please pre-register using the links here (www.frontiercooperative.com) if you would like to attend. If you do not preregister, please be sure to bring your state certified applicator number.



Co-op leaders review solid performance at annual meeting

The dairy farmer-owners of Associated Milk Producers Inc. (AMPI) will share $2.4 million in cash payments, a return on their dairy cooperative investment. The payment will be mailed in March, much earlier than anticipated, announced AMPI Chairman of the Board Steve Schlangen to about 300 annual meeting attendees gathered at the DoubleTree by Hilton Hotel in Bloomington, Minn.

The cash payment is a portion of the nearly $12 million of 2018 earnings allocated to AMPI owners’ accounts as a result of the cooperative’s solid performance. “Getting cash in the hands of members is a priority,” said Schlangen, a dairy farmer from Albany, Minn.

Retaliatory trade tariffs sent cheese markets plunging in the second half of 2018, capping off four years of an industry-wide economic drought. AMPI leaders navigated the challenging dairy environment to achieve $1.6 billion in product sales.

Cheese accounted for the largest portion of the company’s product portfolio, with production surpassing a record 700 million pounds. That accounts for 64 percent of the company’s sales, a 5 percentage-point increase. This follows significant investments in cheese technology at the co-op’s Sanborn, Iowa, and Paynesville, Minn., cheese and whey manufacturing plants.

“AMPI investments and member milk production are in sync with customer demand,” reported Donn DeVelder, AMPI co-president and CEO. “We make what we sell, focusing on the domestic market.”

Despite trade uncertainties, domestic demand remained strong. Annual U.S. natural cheese consumption is estimated to have risen 2.6 percent in 2018. Per capita, Americans now eat an average 38 pounds per person, with Cheddar representing 11 pounds.

“As a leading American-style cheese producer — of which Cheddar is king — AMPI is making strategic investments to capitalize on consumption trends,” said Sheryl Meshke, AMPI co-president and CEO. “Our customers are wrapping their brands around more sticks, chunks, shreds and slices of AMPI cheeses. As consumers crave more cheese, we will be the farmer-owned cooperative that delivers.”

AMPI-made cheese continues to be among the industry’s best, tallying 19 top-three finishes in major industry competitions in 2018. Meshke says delivering quality, locally sourced cheese on a large scale gives AMPI a competitive edge in the marketplace.

“Today’s consumer wants to know where their cheese comes from,” she said. “We can pinpoint the family farms, the cheesemakers and the rural communities that benefit.”

The AMPI annual meeting culminates with delegates considering resolutions and reviewing the cooperative’s legislative priorities for the coming year.

AMPI is headquartered in New Ulm, Minn., and owned by dairy farm families from Wisconsin, Minnesota, Iowa, Nebraska, South Dakota and North Dakota. AMPI members marketed 5.7 billion pounds of milk, resulting in $1.6 billion in sales for the cooperative in 2018. AMPI owns 10 Midwest-based manufacturing plants where nearly 10 percent of the nation’s American-type cheese and butter is produced. The cooperative’s award-winning cheese, butter and powdered dairy products are marketed to foodservice, retail and food ingredient customers.



China Purchase Promises for U.S. Beans Continue, But So Do Tariffs

The United States Department of Agriculture (USDA) has announced that in White House meetings today the Chinese government committed to buy an additional 10 million metric tons of U.S. soybeans. While this news brings purchase commitments from China to approximately 16.5 million, the total purchases still do not add up to the value to soybean growers of seeing retaliatory trade tariffs rescinded.

“It is good to see our beans moving to China again,” said Davie Stephens, a grower from Clinton, Ky., and president of the American Soybean Association (ASA). “While piecemeal purchases such as this one can be a part of the solution, what our industry needs right now is structural reform that leads to China rescinding its tariff on U.S. beans and fully reopening the market,” Stephens continued.

ASA says the industry’s greatest fear is long-term damage to the relationship it has built and sustained with China. The value of U.S. soybean exports to China has grown 26-fold in 20 years, from $414 million in 1996 to $14 billion in 2017. China imported 31 percent of U.S. production in 2017, equal to 60 percent of total U.S exports and nearly one in every three rows of harvested beans. Over the next 10 years, Chinese demand for soybeans is expected to account for most of the growth in global soybean trade, making it a prime market for the U.S. and other countries.

ASA calls for the Administration to continue its talks with China in an effort to rescind the tariffs as part of the negotiated outcomes.



Enlist Soybeans Get Last Approval

Soybean growers gained another herbicide trait platform today with the notification that Enlist E3 had been granted import approvals in the Republic of the Philippines. China opened its doors to the biotech trait in January, but seed companies were waiting for this latest approval. The Philippines is a top buyer of U.S. soybean meal, used primarily to feed livestock.

Jointly developed by Dow AgroSciences and MS Technologies, Enlist E3 soybeans are tolerant to new 2,4-D choline in Enlist Duo and Enlist One herbicides, as well as glyphosate and glufosinate herbicides. Enlist Duo herbicide is a combination of new 2,4-D choline and glyphosate. Enlist One herbicide is a singular 2,4-D choline product that can be tank mixed with qualified glufosinate products. Dow AgroSciences is now part of Corteva Agriscience, Agriculture Division of DowDuPont.

Corteva Agriscience and MS Technologies said in a news release that the trait would be available in "introductory launch" volumes in many seed brands for U.S. growers in 2019. Brands will include many Corteva Agriscience seeds as well as many licensees. Full commercial quantities across all Corteva Agriscience brands will be available in 2020, including Corteva Agriscience's flagship Pioneer brand, as well as from Stine Seed Company and Merschman Seed Company, the press release said.



Grain dust explosions rose in 2018, while injuries and fatalities declined, according to Purdue report

The number of grain dust explosions increased in 2018, but the resulting injuries and fatalities decreased from the previous year, according to an annual report issued by Purdue University’s Department of Agricultural and Biological Engineering.

There were 12 grain dust explosions in 2018, compared to seven in 2017 and a 10-year average of 8.4 per year. There was one fatality and four injuries nationwide in 2018, compared to five deaths and 12 injuries in 2017. Explosions occurred at two feed mills, two ethanol plants and eight grain elevators, the report said.

Grain dust was identified as the fuel source in three of the 2018 explosions.

“Grain dust acts as a fuel for these explosions, and all it takes is a small spark for ignition to occur,” said Kingsly Ambrose, associate professor of agricultural and biological engineering at Purdue, and author of the report. “That’s why it’s critical to keep the facility clean, make sure employees and contract workers are properly trained and ensure that equipment is properly maintained and in good working order.”

Illinois and Iowa each reported two explosions last year, while Indiana, Kansas, Louisiana, Minnesota, Nebraska, Oklahoma and Texas each reported a single incident. The year’s sole fatality, along with one injury, occurred in a Nebraska grain elevator explosion. The remaining injuries in 2018 occurred at grain elevator explosions in Iowa and Kansas.



USDA Sees a Larger Corn Crop and Smaller Soybean, Wheat Crops for Next Year

USDA sees higher corn acres, production, exports and prices for the 2019-20 crop as well as lower ending stocks at the end of the year. It's a different story for soybeans as production and yield are lowered, but a high carryover, relatively low exports and overall higher supply will translate into continued higher ending stocks.  USDA released its initial Grains and Oilseeds Outlook early Friday at the USDA Agricultural Outlook Forum.

CORN
Production is pegged at 14.89 billion bushels (bb), which would be 3% above the 2018-19 crop. Yield is projected at 176 bushels per acre (bpa), "based on a weather-adjusted trend, assuming normal planting progress and summer growing season weather." And planted acres is projected at 92 million acres (ma), up from 89.1 ma for the 2018-19 crop.

USDA raised feed and residual use for corn by 125 million bushels (mb) to 5.5 bb. Ethanol production remains steady at 5.575 bb. Exports are bumped up 25 mb to 2.475 bb.

Ending stocks for the 2019-20 crop are projected at 1.65 bb, down 85 mb from the 2018-19 crop. The stocks-to-use ratio would fall to 10.9% for 2019-20 compared to 11.6% for the 2018-19 crop.

The average farm-gate price is bumped up 5 cents a bushel to $3.65 a bushel as well.

SOYBEANS
Soybean production is pegged at 4.175 bb, an 8% decline from the record 2018-19 crop.  The average yield is projected at 49.5 bpa, down 2.1 bpa from last year.

With a projected carryover of 910 mb, total supplies of 5.105 bb will be a record volume. USDA increase domestic crush to 2.235 bb, up 18 mb from the 2018-19 crop.

Exports are increased to 2.025 bb, up 150 mb from the 2018-19 crop, but still lower than most recent current years such as 2016-17 and 2017-18. Ending stocks for the 2019-20 crop are pegged at 845 mb, down 65 mb form the 2018-19 crop, but still historically high. The stocks-to-use ratio falls from 22.2% for 2018-19 to 19.8% for 2019-20. Still, that remains high compared to 2016 and 2017 crops.

Soybean prices are expected to increase an average of 20 cents to $8.80 a bushel.

WHEAT
Wheat production is projected at 1.9 bb, up about 16 mb from the 2018-19 crop.  Planted acres are pegged at 47 ma, down 800,000 acres from a year earlier. Yield is forecast at 47.8 bpa, up .2 bpa from last year as well.

Beginning stocks are projected at 1.01 bb, but domestic food and seed use is expected to rise by 10 mb, as is feed and residual use, bringing total domestic use to 1.133 bb, up 20 million bushels from 2018-19.

Exports, however, are projected to decline 25 mb to 975 mb. That puts ending stocks for 2019-20 at 944 mb, down 66 mb from 2018-19.

The average farm-gate price for wheat is projected at $5.20 a bushel, up five cents from the old crop.



Another Record Year for Meat Production Forecast for 2019

U.S. meat production continued to climb to record levels in 2018 and that trend will continue in 2019.  Total red meat and poultry production grew 2% to a record 102.4 billion pounds last year, and USDA expects these categories to increase by 2% again in 2019, to reach a new record of 104.7 billion pounds. These projections were released early Friday in USDA's outlook for livestock and poultry, at the agency's annual Agricultural Outlook Forum in Arlington, Virginia.

BEEF
Commercial beef production for 2019 is forecast to increase by 3% to 27.61 billion pounds, which broke the previous record for production set in 2002. Total commercial cattle slaughter is expected to rise in 2019 by nearly 1%.

Beef exports are forecast to have increased by 11% for 2018, with competitive U.S. beef prices and global demand holding steady. For 2019, exports are expected to rise 2% to reach 3.26 billion pounds.  Beef imports are expected to reach 3.01 billion pounds, just barely up from 2018 levels.

The 5-Area steer price for 2018 is expected to average $115 to $122 per cwt, up slightly from 2018. Cow-calf operators and backgrounders will likely see lower prices in 2019, given higher projected feed prices and large supplies of cattle in feedlots. Feeder steer prices are forecast to average $141 to $148 per cwt, compared to $147 in 2018.

PORK
Hog producers continue to expand herds, despite lower returns. Several new plants opened up in the last two years, which has added capacity and allowed producers to take advantage of expectations of strong demand.

Commercial pork production is forecast to reach a record level of 27.34 billion pounds in 2019, up 4% from 2019. Despite these expected record-high slaughter numbers, the recent expansion of slaughter capacity should absorb this growth, USDA said.

Pork exports increased in 2018, with low prices and increased global economic growth overriding the effect of tariffs and trade disputes. Exports are forecast to increase 6% again in 2019, to 6.3 billion pounds. Pork imports declined 5% in 2018, thanks to rising pork production and low domestic pork prices, which made the U.S. market less competitive abroad. This trend is expected to continue in 2019, with pork imports forecast to drop slightly to 1.06 billion pounds.

U.S. hog prices are forecast to average $41 to $44 per cwt for 2019, down from $46 on average last year.



USDA: Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 511 million bushels in December 2018. Total corn consumption was up 2 percent from November 2018 but down 5 percent from December 2017. December 2018 usage included 92.0 percent for alcohol and 8.0 percent for other purposes. Corn consumed for beverage alcohol totaled 2.55 million bushels, down 13 percent from November 2018 but up 13 percent from December 2017. Corn for fuel alcohol, at 461 million bushels, was up 1 percent from November 2018 but down 6 percent from December 2017. Corn consumed in December 2018 for dry milling fuel production and wet milling fuel production was 90.5 percent and 9.5 percent, respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.93 million tons during December 2018, down slightly from November 2018 and down 2 percent from December 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.40 million tons in December 2018, up 6 percent from November 2018 but down 2 percent from December 2017.

Wet mill corn gluten feed production was 290,178 tons during December 2018, up 2 percent from November 2018 but down 9 percent from December 2017. Wet corn gluten feed 40 to 60 percent moisture was 256,146 tons in December 2018, down slightly from November 2018 and down 17 percent from December 2017.



USDA: Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.51 million tons (184 million bushels) in December 2018, compared with 5.34 million tons (178 million bushels) in November 2018 and 5.29 million tons (176 million bushels) in December 2017. Crude oil produced was 2.13 billion pounds up 4 percent from November 2018 and up 6 percent from December 2017. Soybean once refined oil production at 1.45 billion pounds during December 2018 decreased slightly from November 2018 but increased 6 percent from December 2017.

Canola seeds crushed for crude oil was 156,703 tons in December 2018, compared with 161,507 tons in November 2018 and 172,013 tons in December 2017. Canola crude oil produced was 134 million pounds, up slightly from November 2018 but down 9 percent from December 2017. Canola once refined oil production, at 127 million pounds during December 2018, was down 17 percent from November 2018 but up 7 percent from December 2017.

Cottonseed once refined oil production, at 44.2 million pounds during December 2018, was down 10 percent from November 2018 and down 19 percent from December 2017.

Edible tallow production was 72.0 million pounds during December 2018, down 22 percent from November 2018 and down 8 percent from December 2017. Inedible tallow production was 338 million pounds during December 2018, down 4 percent from November 2018 but up 4 percent from December 2017. Technical tallow production was 110 million pounds during December 2018, down 1 percent from November 2018 but up 14 percent from December 2017. Choice white grease production, at 118 million pounds during December 2018, increased 1 percent from November 2018 and increased 14 percent from December 2017.



ACE returns to Mexico in 2019 to address ethanol questions from service station owners

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty traveled to Mérida, Mexico, this week for the first ethanol technical information forum held in 2019 for Mexican petroleum equipment installers and retailers. The forums are a joint effort of the U.S. Grains Council and the Mexican Association of Service Station Providers (AMPES), to inform Mexican petroleum marketers about opportunities in sourcing, marketing, and retailing ethanol-blended gasoline, as Mexico’s transportation fuel sector continues to evolve.

“These workshops continue to help more Mexican fuel marketers, equipment suppliers, and some government officials understand offering gasoline with 10 percent ethanol is a safe and economically sensible way to have cleaner air and provide less expensive options at the pump for drivers in Mexico,” Lamberty said. “‘The math’ of ethanol blends is undeniably attractive for station owners and consumers right now, and our goal this year will be helping businesses learn how they can obtain and transport our product to places where it can be blended and delivered to stations. Fuel equipment companies say the workshops have inspired interest from retailers and prospective wholesale distributors of ethanol.”

Located in the northwest part of the state of Yucatán, Mérida receives gasoline shipments at the port of Progresso, about 25 miles from the city. A private company is building a fuel receiving terminal at the port, and owners of the new facility attended the workshop. “Pemex has an older refined products terminal there, and the owners of this new terminal say they’re building it recognizing it could be an attractive upgrade for the Mexican oil company, as well as U.S. refiners right across the Gulf of Mexico,” Lamberty said. “At the forum, I pointed out the economic advantages to bringing in ethanol as well, since it could lower costs and increase octane for any refiner who wants to start blending in the Yucatán.”

“Government officials have also expressed interest in more ethanol in the Mexican fuel marketplace to address the country’s gasoline shortage, reduce the cost of fuel, and combat illegal fuel theft through gasoline pipeline tapping,” Lamberty added.