Wednesday May 12 Ag News

 NEBRASKA CROP PRODUCTION REPORT

Based on May 1 conditions, Nebraska's 2021 winter wheat crop is forecast at 36.7 million bushels, up 8 percent from last year's crop, according to the USDA's National Agricultural Statistics Service. Average yield is forecast at 47 bushels per acre, up 6 bushels from last year. Acreage to be harvested for grain is estimated at 780,000 acres, down 50,000 acres from last year. This would be 87% of the planted acres, below last year's 92% harvested.

May 1 hay stocks of 1,000,000 tons are down 28% from last year.

Winter Wheat Production Up 10 Percent from 2020
U.S. Winter wheat production is forecast at 1.28 billion bushels, up 10 percent from 2020. As of May 1, the United States yield is forecast at 52.1 bushels per acre, up 1.2 bushels from last year's average yield of 50.9 bushels per acre. Area expected to be harvested for grain is forecast at 24.6 million acres, up 7 percent from last year.

Hard Red Winter production, at 731 million bushels, is up 11 percent from a year ago. Soft Red Winter, at 332 million bushels, is up 25 percent from 2020. White Winter, at 220 million bushels, is down 10 percent from last year. Of the White Winter production, 14.2 million bushels are Hard White and 206 million bushels are Soft White.



SELECTING SUMMER ANNUAL FORAGES
– Jerry Volesky, NE Extension

Are you planning to plant a summer annual grass, maybe to build hay supply or have some extra grazing?  Which one will you plant?

It can be confusing because there are six different types of major summer annual forage grasses.  These include: sudangrass, sorghum-sudan hybrids, forage sorghum (which we often call cane or sorgo), foxtail millet, pearl millet, and teff.  Each one has its own strengths and weaknesses.  So, base your choice primarily on how you plan to use it.

For example, do you want pasture?  Then use sudangrass or pearl millet.  Both are leafy, they regrow rapidly, and they contain less danger from prussic acid poisoning than other annual grasses.

What if you want hay or green chop?  Then select sorghum-sudan hybrids or pearl millet because they yield well and they have good feed value when cut two or three times.  On sandy soils, or when conditions are dry, foxtail millet may be a better choice for summer hay.  It dries fast, doesn't regrow after cutting, and handles dry soils well.  Cane hay is grown in many areas and produces high tonnage, but it’s lower in feed value and dries more slowly after cutting than the hybrids or millets.  Or you could choose teff for a really soft, leafy, high quality horse hay.

Maybe you plan to chop silage.  Then choose the forage sorghums, especially hybrids with high grain production.  They can't be beat for tonnage or for feed value.

While there are several choices of summer annual forages, simply select the one that is best adapted to the way you plan to use it.  And, of course, hope for rain since even these grasses won’t grow without some moisture.



Beef 101 Workshop Held for DMACC Culinary Students

Culinary students from the Iowa Culinary Institute at Des Moines Area Community College (DMACC) learned first-hand about the beef industry at a Beef 101 educational workshop hosted by the Iowa Beef Industry Council (IBIC) on April 23, 2021. The event was conducted in collaboration with the Iowa State University (ISU) meat laboratory and ISU Beef Teaching Farm. Twenty-five students and a chef instructor attended the event.

Workshop presentations included Beef Grading, Aging and More, from Dr. Steven Lonergan, Professor of Meat Science and Muscle Biology at ISU. Information about beef grades, aging beef and meat tenderness was covered. Dr. Dan Loy, Beef Cattle Field Specialist at the Iowa Beef Center, presented What Happens on the Farm with a discussion on cattle feed, beef breeds and health products used in modern cattle production. A Beef Carcass Fabrication, conducted by Dr. Terry Houser, Jeff Mitchell and ISU meat lab staff showed students the primals and subprimals of the beef carcass and a demonstrated the breakdown of most beef cuts.

The workshop concluded with a beef farm tour at the ISU Beef Teaching Farm. David Bruene, ISU Beef Teaching Farm Manager, showcased a cow-calf operation, rotation grazing and held a Q&A session.

“The Beef 101 course through the Iowa Beef Council and Iowa State University is exceptional! We look forward to attending every year because it is such a wonderful experience for our students. It’s one of the very last classes that DMACC/ICI students attend before they graduate our program and I get nothing but excellent positive feedback from our students on the experience,” commented Dean Luttrell, CEC, Executive Chef/Professor at ICI DMACC.

Students completed a pre- and post-event survey to determine their knowledge of the beef industry. Prior to the event, the student’s knowledge level of beef was 2.3 out of 5 on average. After the presentations, farm tour and guest speakers, the student’s knowledge level of beef increased to 4.1 out of 5 on average.

“The Beef 101 workshop provides valuable information to help students make informed menu decisions on beef for their food service operations upon graduation,” reported Rochelle Gilman, IBIC Director of Nutrition and Health.

The event was funded by the Iowa State Beef Checkoff Program. Events such as the Beef 101 educational workshop provide opportunities for culinary students to learn more about the beef industry and to use that knowledge in their careers.



SRSP to Supply Phillips 66 with Soy Oil

Shell Rock Soy Processing (SRSP), LLC has signed an agreement with Phillips 66 to supply soy oil for sustainable fuel production, including renewable diesel. This innovative partnership with the petroleum industry creates new opportunities for Iowa farmers.

“A huge shift is underway in the energy industry that’s driving demand for soy oil,” says Mike Kinley, CEO of Mid-Iowa Cooperative (MIC), a developing partner of SRSP. “Working with Phillips 66 is a key step to help Iowa farmers benefit from the next level of sustainable energy production.”

When SRSP becomes operational in late 2022, it will produce around 4,000 barrels of soybean oil per day. Phillips 66 has an agreement to purchase 100% of the plant’s production of soybean oil that can be used to make renewable fuels.

“This strategic investment expands our reach into the renewable diesel value chain and provides secure feedstock,” said Brian Mandell, Phillips 66 Executive Vice President of Marketing and Commercial. “It also reflects our commitment to play an important role in a lower-carbon energy future.”

Renewable diesel is chemically similar to petroleum diesel, but it’s 100% renewable and sustainable. This direct substitute for diesel fuel is refined from lower carbon and renewable materials, including soy oil.

 A variety of energy companies, including Phillips 66, are retrofitting existing oil refineries to produce renewable fuels. Phillips 66 unveiled plans last year to convert its Rodeo Refinery in the San Francisco area into one of the world’s largest renewable fuels facilities, capable of producing 800 million gallons per year of renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oils, fats, greases, vegetable oils and other feedstocks. If approved, the project would be completed in early 2024.

“Energy companies are sprinting towards renewable diesel production,” Kinley said. “SRSP will help Iowa soybean farmers power these new opportunities.”

Diversifying the local ag economy
When operational, SRSP will crush approximately 40 million bushels of soybeans annually, or 110,000 bushels daily. In addition to the soybean oil, SRSP will produce more than 900,000 tons per year of soybean meal and hulls for livestock feed.

Local cooperatives will originate soybeans from farmers, and SRSP will buy soybeans directly from farmers. SRSP’s close proximity to the Iowa Northern Railway will allow rail cars to be unloaded with soybeans and loaded with soybean meal and soybean oil.

SRSP will bring Butler County and surrounding areas into the center of the global ag economy while diversifying the local economy. “We’ve already been getting calls from job seekers wanting to know if SRSP is hiring,” Kinley said. “We’re excited to make SRSP a reality that will benefit the region for decades to come.”

About Shell Rock Soy Processing
Shell Rock Soy Processing (SRSP) is developing a $270 million soybean-crushing plant at the Butler Logistics Park northwest of Shell Rock, Iowa. When operational in 2022, SRSP will crush 40 million bushels of soybeans annually, or 110,000 bushels daily. The plant will create 50 to 60 high-quality jobs. SRSP will also produce soy oil that can be used for a variety of applications, including livestock feed, fuel and the human food industry. Approximately 25 percent of SRSP’s products will be used within Iowa, while 75 percent will be exported outside of Iowa.



CHS expands grain capacity at Myrtle Grove export terminal

CHS Inc., the nation's leading agribusiness cooperative, today announced plans for a significant renovation and expansion project at its Myrtle Grove, La., grain export terminal. The $73 million investment focuses on storage and handling upgrades, which will grow market access for farmer-owners and help move 30 percent more bushels of grain annually through the terminal to global customers.

"CHS is always looking for ways to expand market access for farmers' crops," says Chris Pothen, vice president, CHS Global Grain & Processing. "Improvements at Myrtle Grove will allow us to move more grain to world markets with greater speed and efficiency."

The CHS Myrtle Grove terminal handles wheat, soybeans, corn, rice, DDGS (distillers dried grains with solubles) and specialty grains for export to customers in Asia Pacific and Latin American countries. Located 25 miles south of New Orleans, it is the first terminal on the Mississippi River.

"Construction is expected to begin in August, during low river conditions," says Kevin Hall, vice president, supply chain and continuous improvement for CHS. "Given the terminal's unique location, significant environmental, engineering and construction elements were built into every part of our plan."

The terminal expansion project will add six shipping bins providing 580,000 bushels of storage, bringing total Myrtle Grove shipping bin storage capacity to 850,000 bushels. Other upgrades include a new bulk weighing and grading system, a new dock and barge unloading system and independent conveyance for vessel loading that will allow two commodities to be loaded at the same time.

"With this new capacity and increased capabilities at Myrtle Grove, CHS will be well positioned to meet global demand from Asia Pacific, Europe, Middle East, Africa and Latin America customers and execute with precision from a world-class asset strategically positioned on the center Gulf shipping channel," adds Pothen.

Completion is expected by summer 2023.



Weekly Ethanol Production for 5/7/2021

According to EIA data analyzed by the Renewable Fuels Association for the week ending May 7, ethanol production scaled up 2.8%, or 27,000 barrels per day (b/d), to 979,000 b/d, equivalent to 41.12 million gallons daily and a 22-week high. Production was 58.7% above the same week last year when the effects of the pandemic were reflected but was 6.9% below the same week in 2019. The four-week average ethanol production rate increased 1.0% to 954,000 b/d, equivalent to an annualized rate of 14.62 billion gallons (bg).

Ethanol stocks dropped 5.1% to 19.4 million barrels. This is 19.8% below a year-ago, 12.8% below this time in 2019, and the smallest reserves since 2016. Inventories thinned across all regions.

The volume of gasoline supplied to the U.S. market, a measure of implied demand, decreased 0.7% to 8.80 million b/d (134.90 bg annualized). Gasoline demand was 19.0% above a year ago but was 3.8% below the same week in 2019.

Refiner/blender net inputs of ethanol ticked 0.1% higher to 888,000 b/d, equivalent to 13.61 bg annualized. This was 33.3% above a year ago but was 6.8% below 2019.

There were zero imports of ethanol recorded for the twenty-first consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of March 2021.)



UAN Fertilizers Gain 5% as Retail Prices Keep Inching Higher

Retail fertilizer prices continued to push higher the first week of May 2021, according to sellers surveyed by DTN.  Like last week, all eight of the major fertilizers were higher compared to a month earlier. Unlike recent weeks, a couple fertilizers were significantly higher, which DTN designates as 5% or more.  Both UAN28 and UAN32 were 5% more expensive compared to last month. UAN28 has an average price of $358 per ton and UAN32 $398/ton.

The average retail price of DAP and anhydrous increased 3%, to $634/ton and $712/ton, respectively.  Two fertilizers' prices increased 2%. Urea had an average price of $514/ton while 10-34-0 was $618/ton.  The remaining two fertilizers, MAP and potash, each had 1% price increases. MAP cost an average of $705/ton, while potash was $436/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.56/lb.N, anhydrous $0.43/lb.N, UAN28 $0.64/lb.N and UAN32 $0.62/lb.N.

With retail fertilizer prices moving higher over recent months, all fertilizers are now higher in price from a year ago.  Potash is now 18% more expensive, 10-34-0 is 32% higher, urea is 33% more expensive, UAN32 42% higher, anhydrous is 45% more expensive, UAN28 is 51% higher, DAP is 53% more expensive and MAP 63% is higher compared to last year.



Conab Cuts Brazil Corn Forecast Amid Dry Weather, Trims Soybean Estimate

Brazilian crop agency Conab cut its forecast for the 2020-2021 corn crop because of dry weather in many areas of the country and trimmed its estimate for soybean production for season as harvesting of the oilseeds came to an end.

Brazilian farmers produced a record 135.4 million metric tons of soybeans this season, the agency said Wednesday. In April the agency said it expected a crop of 135.5 million tons. Brazil produced 124.8 million tons of soybeans in the 2019-2020 season, the previous record for the oilseeds.

Conab also cut its forecast for the country's total corn production in the 2020-2021 season, to 106.4 million metric tons from the April forecast of 109 million tons.

Brazilian farmers take advantage of the country's mild winters to plant two crops of corn, and with scant precipitation in many grain-growing areas, Conab said it's waiting to see how much rain falls in the key month of May to better determine the size of the winter corn crop.

The dry weather is also having an effect on other important crops produced in Brazil, including coffee and sugar. On Tuesday, coffee exporters group Cecafe said the lack of rain in coffee-growing areas last year and this year could reduce the size of the coffee crop and impact exports of the beans.



Needle Size and Care Recommendations

Anyone who's ever received a vaccination will verify that needle size matters. And that is true with cattle as well.

Kansas State University veterinarians Bob Larson and Brad White took up this topic on a recent Beef Cattle Institute Cattle Chat podcast.

"Many animal health products given to cattle to prevent or treat diseases are injected with a syringe and needle," Larson said. "Selecting the correct size of needle to deliver injections under the skin or into the muscle is important to ensure that the products perform as intended and meet Beef Quality Assurance guidelines."

When it comes to needle selection for cows, he recommends using a 16- or 18-gauge needle. The gauge refers to the diameter of the needle.

"An 18-gauge needle is actually smaller than a 16 and in calves we may go even smaller and use a 20-gauge needle," Larson said.

White added that the chosen needle size relates to the thickness of the animal's skin. He said, "Needle size also depends on the viscosity of the product that I'm giving."

Another factor is the needle length.

Larson said the recommended length of the needle is guided by the type of injection given, which is either under the skin or into the muscle.

"With an under the skin injection the needle length should be 5/8- or 3/4-inch needle, and with an intramuscular injection the length is closer to 1 1/2-inch needle," Larson said. He added that with calves the recommended length would be closer an inch.

Lastly the veterinarians discussed the recommended frequency for changing needles.

"One needle per cow is ideal but depending on the situation you could give up to 10 injections with one needle," Larson said. He added that it is important to make sure the needle is sharp and clean to keep from causing trauma or contamination.

For more information on this topic Larson and White advised producers to review the information on the beef quality assurance website at bqa.org.