Feeder cattle markets at mid-year: 2014 vs. 2013 

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow/Calf Corner newsletter.

We are approaching mid-year with feeder cattle prices at historic levels and showing little sign of slowing down. The question of what to expect in the second half of the year is on many minds. So far, 2014 has been in sharp contrast to the first half of 2013. About a year ago, feeder prices bottomed counter-seasonally in late May/early June. Feeder prices today are 50 percent or more above this time last year. Fed prices are currently about 24 percent higher than one year ago and Choice boxed beef is roughly 15 percent above the $200/cwt. level that it first achieved one year ago. It was just about a year ago, that feeder prices began the increases that have continued to today.


Many factors are quite different between the first half of 2014 compared to the first half of 2013. Most notably, perhaps, is the change in feed prices. In the spring of 2013, with feedlot cost of gain at record levels, feedlots could begin to see the prospects for a dramatic change in corn prices with the coming 2013 crop. Feedlot losses were severe enough that some feedlots essentially stepped out of the feeder market in the period from February until May, allowing feedlot inventories to drop until late summer and fall and thus softening feeder demand. At the same time, cow herd liquidation was still underway, supporting feeder supplies and limiting the decrease in beef production. Through May of 2013, cattle slaughter was down less than one percent and beef production for the year to date was even with 2012 levels. Heifer slaughter was down 3.8 percent year over year while beef cow slaughter was up 3.1 percent and dairy cow slaughter was up 4.1 percent at that point in the year. Continued drought and extremely tight hay supplies forced abandonment of heifer retention and resulted in more herd liquidation through mid-year 2013. 

Click Here to read more from Dr. Derrell Peel.

 The daily spot choice box beef cutout ended the week last Friday at 231.87 which was 1.00 higher than the previous week. There were 869 loads sold for the week in the daily box beef cutout, which was about 12 percent of the total volume.


The comprehensive or weekly average choice cutout which includes all types of sales was 229.55 which was only 23 cents lower.


The total reported box beef volume was 7,281 loads which was 155 loads higher than the previous week and two weeks in a row above 7,000. The total sales continued to improve as retailers purchased product to refill shelves after Father's day, which would mean they had pretty good sales for this big grilling weekend.


Exports were really good at 1,082 loads which were 348 loads more than last week. The formula trade was at 3,622 loads which was about 50 percent of the total loads sold and 82 loads more than last week as retailers bought product to restock shelves.

 Click Here to read more of the weekly box beef report or to listen to the update from Ed Czerwien, USDA Market News.

Consumers Willing to Pay a Lot More for Most Protein Items in OSU Food Demand Survey

U.S. consumers were willing to pay a lot more by mid-June for beef, pork and chicken products compared to what they were willing to pay in mid-May, according to Oklahoma State University's Food Demand Survey. The largest absolute monthly increase was for steak ($1.17 increase), and the largest monthly percentage increase was for chicken wings at an almost 36% increase. Consumers say they are willing to spend $7.52 a pound for steak, up from $6.35 just one month ago.


The June Survey showed that consumers were willing to pay $4.50 a pound for ground beef, $4.14 a pound for pork and $5.35 a pound for a chicken breast.


Survey respondents indicated they expect beef prices to continue to rise compared to the previous month and a year ago, while they expect pork and chicken prices to remain similar to last month, but higher than a year ago.  

Click Here to read a summary of this study.   

In the weekly crop progress report, harvest of Oklahoma's wheat and canola is running ahead of a year ago. Wheat harvest is slightly trailing the five year average. The US Department of Agriculture reports forty-seven percent of the state's wheat crop has been harvested and seventy percent of the state's canola crop has been harvested.

Hay conditions are rating in mostly fair condition with 80 percent of first cutting of alfalfa complete. Pasture and range conditions are rating mostly in good to fair condition.

With recent rains, spring seeded crop are off to a good start. Corn conditions rated eighty-one percent good to fair. Sorghum, peanuts, cotton, and soybeans all rated in the high nineties for good to fair condition.  Click Here for the full Oklahoma report.

Winter wheat harvest continues across much of Texas. Much needed rainfall delayed harvest in area, but it was too late for the dry land crop. Forty percent of the state's wheat crop has been harvested.  Click Here for the full Texas report.

Widespread showers and cooler conditions are improving soil moisture and pasture conditions in Kansas. The moisture is delaying the start to wheat harvest and halted the remaining planting activities. Two percent of the state's wheat crop has been harvested. Fifty percent of the corn crop is rating in good to excellent condition.  Click Here for the full Kansas report.

The nation's corn crop is continuing to improve after a strong start to the growing season. In the weekly crop progress report, 17 percent of the US crop is in excellent condition, two points better than last week, 59 percent good, 20 percent fair and four percent poor to very poor. Ninety seven percent of the crop has emerged. Soybeans look to be off to a great start with 13 percent in excellent condition, 60 percent good, 23 percent fair and four percent poor to very poor.

Nationally winter wheat harvest is running slightly behind with 16 percent of the crop harvested. Condition of the winter wheat crop is holding steady with 5 percent in excellent condition, 25 in good, 26 in fair and 44 percent in poor to very poor. The nation's spring wheat crop is rating slightly better than 2013 with 10 percent in excellent, 62 percent in good, 24 in fair and four percent in poor to very poor.

Pasture and range conditions are better than a year ago with nine percent in excellent condition, 45 in good condition, 29 in fair and 17 percent in poor to very poor.

To read the full national crop progress report Click Here. 

CropLife America Stresses Importance of Pollinator Research

CropLife America (CLA) recognizes National Pollinator Week (June 16-22, 2014), reinforces the importance of pollinators in U.S. agriculture and stresses the need for practical research on improving pollinator health, particularly including the influence and responsible management of the Varroa mite.


"As discussions around pollinator health continue at the regulatory level, it is critical that we focus on finding workable solutions," said Jay Vroom, president and CEO of CLA. "Many in the beekeeping and scientific community have confirmed that the Varroa mite is the most harmful pest to honey bees. CLA hopes to see more research conducted on the Varroa mite, as well as potential tactics that incorporate the use of specialized crop protection products. Miticides that are responsibly applied in bee colonies offer a potential solution for controlling mites without harming honey bees."


Earlier this year the U.S. Department of Agriculture (USDA) and U.S. Environmental Protection Agency (EPA) hosted a summit dedicated to discussing the impacts of the Varroa mite on the health of honey bees. Various stakeholders shared knowledge and perspectives surrounding the Varroa mite, reviewed research and recommended future research priorities to improve management and mitigation tactics. 

Click Here for more information on pollinators.

Planning is complete for the 2014 No-till on Plains Bus Tour. This year's tour is August 5-8 and heads south through Kansas and Oklahoma. Nine stops are planned over four days at producer farms using continuous no-till, cover crops and livestock integration. Registration is open and 54 spots are available. "We are excited about heading south this year into Oklahoma," says Ryan Speer, President of No-till on the Plains. Speers' operation, Jacobs Farms, near Halstead, Kansas will be the first farm stop.


The tour will originate in Salina, KS and travel to Jacobs Farms, then head south into Oklahoma. Farm stops in Oklahoma include Randy Lanie farms near Manchester, Marty Williams farms near Red Rock, Matt Alig's farms near Kingfisher, Jimmy Kinder's farm near Walters, and Alan Mindemann's farm near Apache. Stops are also planned at Oklahoma State University's cover crop plots near Stillwater and the Samuel Roberts Noble Foundation in Ardmore.   

Click Here for more details and how to register for the No Till Tour.

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A lot of folks in the US Cattle Industry are fed up with the Chipolte Mexican Grill folks for a variety of reasons- including their recent announcement that they want to bring in Australian beef because they cannot source enough "responsibly raised" beef here in the US. If you have graduated from the MBA program, you likely received a "call to action" on this subject.  More on that later.

But this morning- we wanted to showcase the Ag Commissioner in Texas- Todd Staples- who is calling out Chipolte for this latest grandstanding about the beef they buy.  Staples calls Chipolte less than responsible as they consider hauling Aussie beef 8,000 miles to sell it in their stores.  

He has written a letter- inviting Steve Ells to come to Texas and talk with he and Texas Beef Industry leaders about sourcing high quality American beef.  

He also is urging consumers to speak up- "I encourage Chipotle diners to push Mr. Ells to work with us so they can enjoy fresh, healthy American beef."

Click here for our story on the call by Todd Staples- we have his letter linked in our report.