Oklahoma Weather and Wheat Market Very Volatile as Harvest Nears

Rain has been great to help get rid of Oklahoma's drought situation, but it's not all good news. Wheat harvest is nearing and this ongoing rain will bring challenges in harvesting the crop, plus its negatively impacting the quality of this crop. On this weekend's edition of SUNUP, Oklahoma State University Grain Marketing Specialist Dr. Kim Anderson said he is hearing there will be some sprout damage, but elevator managers are hoping the impact is limited.


Another area of concern is protein. Rain often dilutes protein levels, which farmers receive a premium for, in producing higher protein wheat. Anderson is hearing protein estimates around 11.5 percent. As harvest nears, this crop needs to dry out. He said if we can get some dry conditions, the quality will come in at least acceptable. As soon as fields can dry out, wheat harvest will get underway in southern Oklahoma.


SUNUP host Lyndall Stout also asks Anderson about the wheat market, which has been quite volatile, just like the weather. Anderson said the Kansas City wheat futures contracts were able to catch a 60 cent rally recently and the July contract broke $5.60. He said the funds were buying wheat contracts, which pushed prices higher. This week the price has come back down. Anderson said in four days the price has dropped 55 cents and the price is now below the $5.20 support level.


In looking at cash prices, Anderson said basis levels are running from minus 45 cents in southern Oklahoma to minus ten cents in the Enid area and the Panhandle is at minus 35 cents. In having the July Kansas City wheat contract at $5.10, cash prices are ranging from around $4.65 - $5.00. In looking at the price outlook, Anderson said the July KC contract needs to break through $5.20, then its next target is $5.60. But he doesn't think that will happen anytime soon. If prices fall lower, he said the market could test the support levels at $4.85 and $4.50.  

Click or tap here to listen to the full interview and a complete rundown of this weekend's SUNUP program to be seen on OETA 

The nation's beef checkoff has been in place for 30 years. The original beef checkoff was established under the 1985 Farm Bill, where producers set up $1 per head assessment for marketing, education and promotion. Since that time a lot has changed, including what that dollar will buy you today. That's why many agricultural groups are lobbying to reopen the 1985 Act to increase the assessment rate for the national beef checkoff.


In going back to the mid 80's, Chandler Keys was a new lobbyist for National Cattlemen's Association (NCA).   He said at that time the concept of the beef checkoff wasn't a slam dunk. Senators Jesse Helms, Bob Dole and Dick Lugar were the top three Republican Senators of the Senate Ag Committee. Keys said they did not like the mandatory aspect of the checkoff, without a periodic referendum or the ability for producers to get their assessment back. The original legislation signed into law included all three components.


Now agricultural groups are looking to reopen the legislation to increase the assessment to $2 per head. With today's Congress, he said this might be a dangerous course of action for the beef industry as this Congress is more conservative than Congress was in 1985. 

Click here to read more or to listen to Keys as he discusses why changing the federal beef checkoff will be a tough sell.

2015 Summer Campaign Launch Promises Big Results for Beef

2015 marks the second year since the beef checkoff's "Beef. It's What's For Dinner." brand made the shift from traditional advertising to an all-digital approach, using an integrated digital media plan to reach consumers in a new and highly engaging way.


"The checkoff's advertising efforts are instrumental in helping to educate millions of Americans on beef's superior taste, nutritional package, ease-of-use and versatility by providing them with the beef-related information they need, when they need it," says Terri Carstensen, Chair of the Domestic Consumer Preference committee, and beef producer from Odebolt, Iowa. "Through the checkoff's digital advertising campaigns, consumers are equipped with the beef tips, techniques and recipes they need to ensure a great beef eating experience, each and every time."


The success of the checkoff's advertising program is the result of a three-pronged approach to digital:  1.Surface the information consumers are looking for, when they're looking for it through a variety of online advertising tools, such as search, social and banner advertising; 2.Delight consumers with educational and entertaining content, including engaging and inspiring videos and recipes;  3.Make a positive difference in the way consumers feel about beef by showing how easy and versatile beef can be for any day of the week. 

Click here to read more about the summer beef campaign. 

Selk Offers Tips for Dealing With Wet Hay and Preventing Hay Fires

Glenn Selk, Oklahoma State University Emeritus Extension Animal Scientist, writes in the latest Cow-Calf Newsletter.


After several years of drought, rain in Oklahoma is allowing cool season forages to grow in abundance. Harvesting and baling cool season crops such as fescue and wheat hay is a challenge during a wet spring. The timing of the rains can make it difficult for cattlemen that are trying hard to put quality hay in the bale for next winter's feed supply.   All producers that harvest hay occasionally will put up hay that "gets wet" from time to time. Therefore, ranchers and hay farmers need to understand the impact of "wet hay" in the tightly wound bales.


Extra moisture in hay can cause heat inside the hay bale or hay stack. Heat produced by the bale comes from two sources: First) biochemical reactions from plants themselves as hay cures. (This heating is minor and rarely causes the hay temperature to exceed 110 degrees F. Very little if any damage occurs if the hay never exceeds 110 F.); Second) Most heat in hay is caused by the metabolic activity of microorganisms. They exist in all hay and thrive when extra moisture is abundant. When the activity of these microbes increases, hay temperature rises. Hay with a little extra moisture may not exceed 120 degrees F., whereas, wetter hay can quickly exceed 150 degrees. If the hay rises above 170 degrees, chemical reactions can begin to occur that produce enough heat to quickly raise the temperature above 400 degrees and the wet hay can begin to burn and cause fires. Be wary of the fire danger of wet hay and store it away from buildings and other "good" hay just in case this would occur.


Heat damage causes hay to be less digestible, especially the protein. Heat damaged hay often turns a brownish color and has a caramel odor. Cattle often readily eat this hay, but because of the heat damage, its nutritional value might be quite low. Some ranchers have reported that "the cows ate the hay like there was no tomorrow, but they did very poorly on the hay". 

Click here to read more about testing hay.   

U.S. Ag Secretary Vilsack Releases Strong Third Quarter Outlook for Ag Exports

U.S. Agriculture Secretary Tom Vilsack Thursday made the following statement on the release of the U.S. Department of Agriculture's third quarter Outlook for U.S. Agricultural Trade.


"The strong pace of American agricultural exports continues, with a trade surplus of more than $23 billion, a $1 billion increase from earlier projections for fiscal year 2015. Fiscal years 2009 to 2014 represent the strongest six years in history for U.S. agricultural trade, with U.S. agricultural product exports totaling $771.7 billion. For many American products, foreign markets now represent more than half of total sales. U.S. agricultural exports now support more than one million jobs here at home, a substantial part of the 11.7 million jobs supported by exports all across our country. Expanded U.S. trade overall has added roughly $13,000, on average, to every American family's income. Fiscal year 2015 exports are now forecast to be the third-highest on record, led by a strong performance in bulk commodities such as grains, animal feeds, and oilseeds.


"This most recent forecast also underscores how free trade agreements have benefitted the American economy through farm goods. In the combined 20 countries where the United States has free trade agreements, agricultural exports have remained relatively steady so far this fiscal year. Exports to countries where the United States lacks the assurances offered by trade agreements have declined this year, highlighting why it is so important for Congress to act and pass strong trade promotion authority legislation. 

Click here to read more, including the full outlook for U.S. Agricultural Trade.  

Award winning broadcast journalist Jerry Bohnen has spent years learning and understanding how to cover the energy business here in the southern plains- Click here to subscribe to his daily update of top Energy News.

Four Okies Competing in World Livestock Auctioneer Championship in June

Four Oklahoma auctioneers will be competing at the 2015 World Livestock Auctioneer Championship (WLAC) this June in Texas.  The championship will take place at the Clifton Livestock Commission in Clifton, June 10-14. The 52nd annual WLAC will take place in conjunction with the Livestock Marketing Association's (LMA) Annual Convention at the Waco Convention Center.


For the World Livestock Auctioneer Champion title, 31 semi-finalist auctioneers will compete in live interview and auctioneering contests. Because of this important, high-profile role, each WLAC semi-finalist must establish their knowledge of the livestock marketing business, and demonstrate their ability to express that knowledge with clarity, in a live interview competition.

Representing Oklahoma include, Justin Dodson, Welch, Okla.; Mike Godberson, Pawnee, Okla.; Brian Little, Wann, Okla.; and Robb Taylor, Perkins, Okla.

Click here to read more about the 2015 WLAC.  

Some Perspectives on a Busy Week- and an In the Field Reminder

It has been a holiday shortened week- but still one that has provided significant news that will reverberate in the days ahead.

We were fully expecting Gina McCarty of the EPA to roll out her "final" Clean Water Rule (known to the rest of us as WOTUS) right around this Memorial Day time frame- and she did not disappoint. 

The assumption by our agricultural groups is that she did not fix the rule and really address the fears that is nothing but a massive land grab that greatly extends the reach of the federal government into the decision making on our farms and ranches. Folks are still reading her fine print of the measure that will become final in about sixty days- and with a strong message of support from President Barrack Obama- it appears that Congress will have few if any ways to stop it.  A straight repeal and instructions to start over has almost no chance of overcoming a Presidential veto- and while cutting off federal dollars for implementation is perhaps more doable by Congress- as it now stands- that won't kick in until the new fiscal year on the first of October- and EPA will already have started down the path of implementation in August and September before that could kick in.  

Of course the third avenue court be by lawsuit- did the Obama Administration overstep the original Clean Water Act from the 1970s?  Can states like Oklahoma find something in the bill that takes away the rights of states to the extent that a judge will be willing to shut the whole process down- questions that are on a fast track because of the sixty day ticking clock before it goes final. 

It was interesting to note that the Administration wrapped the public announcement of the WOTUS final rule around the idea of protecting drinking water and that without this rule- millions could be facing the prospect of dirty drinking water. While ag groups believe WOTUS is a massive land grab- it also has become a massive political spin as McCarty seeks to grab the high ground when it comes to perception in the public arena.

We have been reporting on WOTUS for a long time- and it appears we will continue to do so for a while longer.

ALSO THIS WEEK- it was almost lost in the flood of statements by many groups about WOTUS- but the American Farm Bureau came out in support of REPEAL of mandatory COOL for beef, pork and poultry- AFBF had been on the sidelines up to now- the difference being the final ruling against the US by the WTO regarding our COOL rules. Click here for their statement from earlier this week.

This ups the industry pressure on Congress(especially the Senate) to move forward- and opponents of COOL hope that debate will happen in June ahead of Congress leaving town for their summer recess in just a few more weeks.

Wheat harvest remains stuck in the mud- and earlier this week- we had comments from Mike Schulte of the Oklahoma Wheat Commission about where we stand- his thoughts are available here- and we would invite you to drop us an email about the status of your harvest in the days ahead- email me here at ron@oklahomafarmreport.com. Pictures that we can share with the email family are always welcome!

FINALLY- we invite you to check out our special guest this week for our In the Field feature as seen Saturday mornings on KWTV News9.  Michael Kelsey with the Oklahoma Cattlemen's Association talks about State Question 777 that is coming in the fall of 2016- the Right to Farm battle is going to be a big one for Oklahoma agriculture- and it is almost certain that HSUS and others will do their best to hand farmers and ranchers defeat at the ballot box.  We talk with Kelsey about what the amendment is all about and the early work being done to organize a Yes Vote in 2016.  Join us around 6:40 AM on News9's Saturday morning news.