In his regular Monday market analysis, Dr. Derrell Peel of OSU says that the huge storm that some are calling Goliath has impacted cattle in our region and will likely impact cattle prices in the new year.

According to Dr. Peel- "2015 is showing her teeth one last time with a storm that is affecting people and animals across a majority of the country. The massive storm includes a severe side with rain, flooding and tornados and a winter weather side with snow and blizzard conditions, all separated by a band of freezing rain and sleet. The dividing line between these storm components runs across the middle of Oklahoma resulting in a wide variety of conditions and challenges for Oklahoma cattle producers. The one consistent component across both sides of the storm has been lots of wind."

Dr. Peel says that the effects of the storm will linger and be seen in the markets of 2016- "While the storm is mostly a cattle management issue for cows, it will impact animal productivity for stocker cattle and feedlots. The widespread feedlot impacts will likely affect cattle and beef markets in the coming weeks. Feedlots in the Southern Plains are being hit with adverse weather for the first time this winter; having enjoyed very mild conditions so far this fall. In contrast, feedlots in the Midwest and Corn Belt have already been dealing with muddy conditions and the current weather will aggravate those poor conditions, resulting in additional productivity losses.

"The poor animal performance and additional death loss are a direct economic loss for feedlots; while the broader beef market may reflect the impact of additional loss of beef tonnage as a result of lower carcass weights."


Click here to read the final analysis of the year from Dr. Peel by clicking here.

 

From earlier this fall, this Beef Buzz is a "Best of" edition featuring the comments of USMEF President Phil Seng. According to Seng, US Beef exports have taken a hit in 2015- in both volume sold and the value of those pounds that have been purchased by overseas buyers. Despite the downturn, Phil Seng says there are some bright spots to point to.


"I think one of our exciting success stories has been in the Korean market," Seng said. "We worked very hard in Korea. Our numbers are up in Korea for beef and pork. I think the Korean market has been very, very positive for us."


While U.S. beef and exports have had a tough year in 2015, USMEF is optimistic beef and pork exports will increase in 2016. Seng said USMEF is forecasting U.S. beef exports will increase by eight percent and U.S. pork exports look to increase by six percent. In marketing to customers, USMEF touts U.S. red meat products as a U.S. product that is safe and wholesome. Seng often talks about the diverse government agencies that regulate the safety of all U.S. food products.


Click here to read more and to listen to Phil Seng's comments about what he sees ahead for US meat exports in the new year.

Large stockpiles of commodities could challenge agriculture imports for China in 2016. A new report by CoBank's Knowledge Exchange Division says China has multiyear high supplies of commodities such as corn, wheat, cotton, milk powder and soybeans. The report finds that despite slowing economic growth, China's urban disposable incomes - which drive the country's food and agricultural consumption - are increasing 10 percent year-over-year.

The report blames China's subsidization of its agricultural sector, which has yielded mounting stockpiles of commodities and strained storage capacity, as the real culprit leading to decreased imports in most categories.

CoBank's Dan Kowaklsi said "this issue has been brewing for years and is a result of China's drive to achieve food self-sufficiency." That's because China has subsidized its agricultural sector to the extent that supplies have considerably outpaced increasing consumer spending and consumption.

The report cites USDA figures, which anticipate that China will import 46 percent less corn, 34 percent less cotton and 35 percent less milk powder during the current marketing year. Wheat, soybeans and other food grains are expected to rise, but by smaller margins than in prior years.

The 2015 American Farmers & Ranchers Women's Cooperative food drive totaled 140,303 meals for hungry Oklahomans.


"We are extremely pleased to provide food for those in need," Suzanne Gilbert, AFR Women's Cooperative Council chairperson, said. "It only makes sense that those who produce food provide for those who need it the most."


The rural women conducted a year-long "Drive Away Hunger with AFR" campaign that ended in late December. The women partnered with the Regional Food Bank of Oklahoma, Community Food Bank of Eastern Oklahoma, Invest An Acre, Plant A Row Campagn, DairyMax and local food banks across the state.

Read more about this successful effort to feed hungry Oklahoma families by clicking here.

An analysis of 2016 model year (MY) warranty statements and owner's manuals conducted by the Renewable Fuels Association (RFA) shows that auto manufacturers explicitly approve E15 (15 percent ethanol 85 percent gasoline) use in more than 70 percent of new vehicles. This is up from 2015, when just over 60 percent of MY 2015 automobiles were clearly approved for E15.


RFA's analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA's decision means it joins the other members of the "Detroit Three" (General Motors and Ford) in unequivocally allowing E15.

Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.

With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest "hold-out" when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that "E-15 fuel will adversely affect the emission control devices and systems of the vehicle," which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol "can cause paint damage."

Read more about which makes of autos allow E15 in their new model year and which do not by clicking here.

In case you missed it- Dr. Jeff Edwards talked about the status of the 2016 hard red winter wheat crop in Oklahoma with yours truly this past Saturday morning on KWTV News9 during their regular morning news block. Edwards says that the wheat crop has entered the winter season in the best shape it has been in the last several years- with no drought hurting the potential of the crop that will be harvested in the June time frame in 2016.

We have the video of our weekend Q&A with Dr. Edwards that you can see by clicking here.

At that link- we also have the earlier off camera in depth conversation that we had with Dr. Edwards about the status of the 2016 HRW crop in the state. 

While the floods of eastern Oklahoma may have damaged crop land in that part of the state- the sleet and snow in central and western Oklahoma likely was a further positive for both the winter wheat and winter canola.