February Pork Exports Well Above Last Year; Beef Export Value Remains Strong 

U.S. pork exports remained well ahead of last year's record pace through February, while beef exports trended slightly lower in volume but posted excellent results in terms of value, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

Pork export volume (187,629 metric tons) was 9 percent higher than in February 2011, while value ($526.2 million) was up 21 percent. For the first two months of the year, pork exports totaled 399,086 mt valued at $1.09 billion - increases of 18 percent and 31 percent, respectively. This is the first time U.S. pork export value has reached the $1 billion mark after only two months.

February beef export volume (87,131 mt) was 3 percent lower than a year ago but export value remained exceptionally strong, increasing 10 percent to $409 million. Through the first two months of the year, beef exports totaled 176,585 mt (-2 percent) valued at $815 million (+12 percent).

"Export results were quite solid, especially considering the impact of market access issues in some destinations, particularly Taiwan and Southeast Asia," said USMEF President and CEO Philip Seng. "We continue to expand the presence of U.S. pork in all key destinations - especially in North Asia and in Western Hemisphere markets. In the beef complex, export volume may be struggling somewhat due to price, but we are having great success directing beef cuts to the markets that value them most. This is keeping beef export value very strong - well ahead of the record pace established last year." 

Click here to read more about February's export results and what they portend for the future. 

Awards Handed Out at Conservation Day Celebration at the State Capitol 

The Oklahoma Association of Conservation Districts (OACD) sponsored "Conservation Day at the Capitol" on Monday. Cosponsors included a number of the state's 87 local conservation districts, the Oklahoma Conservation Commission, and the USDA Natural Resources Conservation Districts.

The event was held in the Capitol Rotunda on the fourth floor. Participants had exhibits on display featuring the diverse conservation activities across the state addressing local natural resource needs.

On Monday afternoon, the Conservation Day awards presentation took place in the Governor's Blue Room. Jim Reese, Oklahoma Sec. of Agriculture represented Gov. Mary Fallin and joined Joe Parker, president of the Oklahoma Association of Conservation Districts, in presenting awards. Representatives of sponsoring organizations were also at the Capitol to join in the presentations.

Bill Mangels of Lenapah, Jan Kunze of Oklahoma City, and the Craig County Conservation District took the top awards and five educators from across the state were also honored.

You can read all about the awards and link to pictures of the winners by clicking here.

Oklahoma Wheat Continues to Race Ahead of Most Disease Problems in 2012

The Oklahoma wheat crop continues to race toward maturity- and has been able to stay ahead of most disease problems all season long- the latest report from the weekend from Dr. Bob Hunger of Oklahoma State University seems to confirm that status. However, we are seeing some disease in many wheat fields across the state and invite you to read the specifics below in Hunger's report.

More disturbing are a couple of reports coming from Texas and Kansas. In Kansas, Plant Pathologist Dr. Erick De Wolf out of Kansas State says that "stripe rust is widely established in central Kansas this year. The weather has been conducive for disease development and the weather forecast appears to favor continued development. The disease is still at low levels in many fields, however, the severity of disease will likely increase dramatically in the next 10 days." 

The news from Texas surrounds stripe rust and the possibility that we could see the pathogen changing and adapting and becoming more tolerant of warmer temperatures- which if that is the case- could spell more pressure from this newest variation of stripe rust in the next few years in Oklahoma. 

You can click here to read the individual reports detailing disease conditions in Oklahoma and surrounding states.

ASA Joins Ag Community in Urging Estate Tax Action Before End of Year

The American Soybean Association (ASA) joined counterparts from the commodity, dairy, livestock and specialty crop industries in urging the House and Senate to enact legislation before the end of the year to provide permanent and meaningful estate tax relief. ASA supports permanently keeping the current exemption at $5 million per person and retaining the top rate of 35 percent. ASA believes it is also imperative that the permanent estate tax law index the exemption to inflation, provide for spousal transfers, and include the stepped-up basis.

If Congress does not take action on ASA's recommendations before the end of the year, the exemption will drop to $1 million and the top tax rate above the exclusion amount will increase to 55 percent.

"If estate taxes are allowed to be reinstated at the beginning of 2013 with only a $1 million exemption and top rate of 55 percent, the negative impact on our industry will be significant," stated the groups. "The 2013 change to the estate tax law does a disservice to agriculture because we are a land-based, capital-intensive industry with few options for paying estate taxes when they come due. The current state of our economy, coupled with the uncertain nature of estate tax liabilities, makes it difficult for family-owned farms and ranches to make sound business decisions."

Bills encompassing ASA's recommendations are pending before Congress.  You can read more by clicking here.

Peel Says Market Dynamics Affect Summer Stocker Prospects

OSU's Extension Livestock Market Specialist Derrell Peel says record high stocker prices this spring have producers and their lenders nervous about the financial exposure of summer stockers. Feeder prices have dropped the last month but the change has actually decreased the stocker margin, i.e., the value of gain for summer stockers. Moreover, the changing price relationships have changed the implications for stocker production and marketing.

In mid-March, the price of 475 pound steers in OKC was about $203/cwt. which is an initial stocker value of $959/head, using the actual weighted average prices and weights. At that time, the price of 725 pound steers was $160/cwt. or a per head value of $1165. This implied a value of gain of $0.81/pound for 250 pounds of gain. Using last week's Oklahoma auction averages, the 475 pound steer price was $190/cwt, or $905/head. The 725 pound steer price was $151/cwt. with a per head value of $1095. This implies a value of gain of $0.76/pound.   

Over the last month, a sharp price break has developed in the 600-700 pound weight range, such that there is currently about a $20/cwt. price break over that 100 pounds. The value of gain in that range is less than $0.40/pound.   This means that stocker gains are being valued at $0.80-$1.00/pound up to about 600 pounds (for steers) followed by very low value gains for the next 100 pounds or so and then by higher value gains again between 725 and 875 pounds. Using last week's actual prices and weights, gains up to 619 pounds were worth $1.07/pound but the next hundred pounds, up to 726 pounds were worth only $0.35/pound. Gains above this level, up to 875 pounds, were worth $0.70-$0.75/pound.

These price patterns have implications for summer stockers.  Please click here to read more of Derrell Peel's analysis.

Choice Boxed Beef Price Firms Up and Finished Cattle Prices Were Steady Last Week - Audio with Ed Czerwien

In this week's beef report, according to Ed Czerwien, USDA Market News Office in Amarillo, Texas, said we saw the choice cut market firm up by week ending April 14. Choice ended the week at $178.51 cwt, about .50 higher than the previous Friday. The load volume saw good movement of 1,193 loads. During the week, we did see the choice select spread inverted for a couple of days.

As far as the finished cattle trade last week, the trend was generally steady with the previous week. Business in the Southern Plains was mostly $122 cwt. Business was mostly $194 to $195 cwt in the meat, about $1.00 to $2.00 higher..

The average live weight of the cattle harvest from the Texas Panhandle was 1,224 pounds, down 8 pounds from the previous week.

You can hear Ed Czerwien's complete weekly report by clicking here. 

This and That- No Crop Progress Updates-Yet, MBA Day in Stillwater and Wheat Field Days Start Next Tuesday  

You may have noticed that we do not have the regular weekly Crop Weather Update this morning that we normally receive on Monday afternoons- and relay to you on Tuesday mornings.  Well, USDA had a computer glitch due to an electrical fire at USDA headquarters in Washington early Monday morning- and that resulted in computer chaos across the country for the agency- We talked to Wil Hundl, our state statistician around midday yesterday- and he expected the reports would be delayed by 24 hours- they have the data but the pipeline was messed up for a time with the fire- so we will have the latest on wheat and canola crop development(well ahead of normal), spring crop planting (now happening) and a look at pasture conditions(getting better) tomorrow morning. If you want to review where we stood a week ago, click here to jump back to the last report on April 9, 2012.  And if you want to remember how BAD it was last year, click here for the mid April 2011 report. It will make you even more thankful for the rain we have received this year.  

This morning at the Career Tech Headquarters building in Stillwater, our friend Daren Williams, the honorable Dean of the Beef Industry's MBA program(Masters in Beef Advocacy), will be offering a training session to those who have already graduated from the MBA program- or for those who have done the on line courses and have not yet been to a graduation seminar.  Daren tells us that today's course work will help those in attendance  "to get up to speed on the latest messaging and tactics related to issues like "pink slime," the shrinking environmental footprint of beef and the BOLD (Beef in an Optimal Lean Diet) study."  We are a proud graduate of the MBA program- and if you have any involvement with the beef industry- it's an educational exercise that is worth the time- in spades! To learn more about the program, click here and start working on your MBA! 

We got the list late on Monday of the 21 wheat field day locations that have been set by the folks at Oklahoma State University.  We will be getting the full list up on our calendar pages later today- but a heads up that they begin a week from today- April 24th- and the first two stops that will be made are in Chattanooga  and in Apache next Tuesday.  The annual Lahoma Wheat Field Day at the OSU Research Station is planned for May 18th- and you almost have got to wonder if the wheat there will be almost ready for the combines by that stage of the game.