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September 13, 2012 Issue 256-16-19
World Market Movement Indicators: Wheat
Hunting Preview . . . . . . A7 FFA Insert . . . . . . . . . . B1-12 Weather Al Dutcher . . . . . . . . . . . . . . . . . . . . . . . A2
Country Living House Plan . . . . . . . . . . . . . . . . . . . . . . A3 Quilt Pattern . . . . . . . . . . . . . . . . . . . . A5
The Lighter Side Lee Pitts. . . . . . . . . . . . . . . . . . . . . . . . . A4
Markets Grains . . . . . . . . . . . . . . . . . . . . . . . . . . A8 Livestock . . . . . . . . . . . . . . . . . . . . . . . A13
Government Report Government Report. . . . . . . . . . . . . . . . A6
Ag Management CNPPID Officials Study Irrigation Options . . . . . . . . . . . . . . . . . . . . . . . . A11
Livestock News Heartland Cattle . . . . . . . . . . . . . . . . . A12
Jessica Johnson, UNL Extension Educator, Ag Economics Economists are often asked: What do you think prices will do next? The truth is, no matter how much anyone watches the market they can never be 100 percent accurate in predicting where it will go next. So many factors play into supply and demand, it is often difficult to predict which force will have the greatest influence. Producers are generally well informed about domestic markets.
However, identifying and tracking international market signals is more of a challenge, so valuable insight can help in making informed marketing decisions. Moving into late summer, one market to watch is the international wheat market. Wheat is the No. 1 traded commodity on the world market in terms of volume. The United States is the largest exporter, moving 35 million metric tons (MMT) in 2010, more than half of its domestic production. These facts make U.S. wheat highly dependent
on the world market, making it important for those selling wheat to understand the changing market conditions. A few of the more important indicators are exchange rates, competitive substitutes, available wheat supplies, and competitor production area news. 1. Exchange rates: The strength or relative value of the dollar to other currencies is a key factor in trading products. The stronger the
Production News Fire Danger High as Farmers Begin Harvest Season . . . . . . . . . . . . . . . . . . . A9
Schedule of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15-19
Continued on page 9
Trivia Answers on Page 14
U.S. Seed Corn Crop Saved by Irrigation By Lori Potter, The Kearney Hub KEARNEY - Irrigation didn't just save Nebraska's grain crops this year, it preserved seed production for 2013 and beyond. Spokespeople for two of the largest seed corn producers in Nebraska and in the entire Corn Belt said two key risk management tools, irrigation and overproduction, will allow a big enough harvest this year to meet most of their customers' needs for 2013. Most Eastern Corn Belt grain production is on dryland acres that have suffered severely during the 2012 drought. However, Monsanto and DuPont Pioneer have seed corn fields in that region under irrigation, just as they are in Nebraska. For daily agriculture news, updates and local happenings, visit the Heartland Express website at www.myfarmandranch.com
Much of the seed planted from Nebraska to the West Coast is grown within a 50-mile radius of Kearney. The Monsanto Corn Production Facility on the east side of Kearney is the company's farthest west seed processing plant. Monsanto Public Affairs Manager Danielle Stuart of St. Louis said risk management also includes “planting across a wide geography.” That extends to fields in South America where winter production can help fill in for any U.S. seed production challenges. “We do recommend that farmers talk with their dealers or sales reps and order early to ensure they get their first or second choices of hybrids,” Stuart said about seed supplies for 2013.
Meanwhile, Mike O'Neill of Kearney, an account manager for DuPont Pioneer, said, “Most of the [Pioneer] supply we get in this part of the world in Nebraska and the western United States was planted at York and Doniphan.” He said those Nebraska fields look good. “We always have a field here or there, a hybrid, a seed raised in small quantities that's affected by hail and so forth,” O'Neill said, when asked about overall seed availability for 2013. He added that DuPont Pioneer also is starting to produce seed in Argentina and Chile that could help fill gaps in U.S. seed supplies.
MARKET GLANCE Livestock and Products, Weekly Average
Crops, Daily Spot Prices Year Ago 4 Wks Ago 8/31/12
Nebraska Slaughter Steer 35-65% Choice, Live Weight . . . . . . . . . . . . . . .$114.00 Nebraska Feeder Steers, Med. & Large Frame, 550-600# . . . . . . . . . . . .161.95 Med & Large Frame, 750-800 # . . . . . . . . . . . . . . . .131.78 Choice Boxed Beef, 600-750# Carcass . . . . . . . . . .183.22 Western Corn Belt Base Hog Price . . . . . . . . . . . . . .82.06 Feeder Pigs, National Direct, 50#, FOB . . . . . . . . . . . .* Pork Carcass Cutout, 185#, 51-52% Lean . . . . . . . .97.02 Slaughter Lambs, Ch. & Pr.,Heavy, SD Dir. . . . . . . . .184.87 Nat. Carcass Lamb Cutout, FOB . . . . . . . . . . . . . . .406.99
118.44
122.38
156.00 147.83 177.89 88.32 * 92.76 102.00 321.26
159.88 143.60 191.05 73.47 * 82.73 94.00 315.09
Wheat, No. 1, H.W. Imperial, bu . . . . . . . . . . . . . . . . .7.67 Corn, No. 2, Yellow, Omaha, bu . . . . . . . . . . . . . . . . .7.48 Soybeans, No. 1 Yellow Omaha, bu . . . . . . . . . . . . . .14.11 Grain Sorg. No. 2 Yellow, Dorchester, cwt . . . . . . . . .12.39 Oats, No. 2, Heavy Minneapolis, MN, bu. . . . . . . . . . .3.84
8.11 8.08 16.79 13.39 3.96
8.10 8.04 17.37 13.21 4.07
Hay (per ton) Alfalfa, Lrg. Sq. Bales Good to Prem., NE Neb. . . . . .185.50 Alfalfa, Lrg. Rounds, Good, Platte Valley, . . . . . . . . .117.50 Grass Hay, Lrg. Rounds, Premium, Neb., . . . . . . . . .85.00 Dried Distillers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .209.00 Wet Distillers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110.25 * No market.
242.50 242.50 220.00 220.00 155.00 160.00 302.50 322.50 115.00 119.50