WLJ - Vol. 91, No. 04

Page 1

“The Industry’s Largest Weekly Circulation”

The National Livestock Weekly

October 31, 2011 • Vol. 91, No. 4 Octobe

web site: www.wlj.net • E-mail: editorial@wlj.net • advertising@wlj.net • circulation@wlj.net

INSIDE WLJ PRODUCERS EXPLORING OPTION OF FEEDING COTTON — Texas beef producers are exploring the use of whole cotton plants as a protein source for cattle due to extreme drought conditions, according to a report from Texas AgriLife Extension Service. Page 4 BILL PROVIDES CERTAINTY TO RURAL AMERICA — Although there is some regulation of agricultural dust, Congress wants to ensure that no more regulations are enacted. Farmers and ranchers told members of the U.S. House of Representatives subcommittee on Energy and Power last week that some farmers already face limits on their operations because of dust regulations. Page 9 NEBRASKA HOLDS SPECIAL SESSION ON PIPELINE — Gov. Dave Heineman announced that he will be calling the Nebraska Unicameral into special session to determine if siting legislation can be crafted and passed for pipeline routing in Nebraska. The purpose of the special session will be to find a legal and constitutional solution to the siting of oil pipelines within the state. Page 17 GRAZING RESEARCH COULD INFLUENCE WILDFIRE MANAGEMENT — Overgrazing and 20th century fire-suppression strategies have laid the groundwork for some of today’s “catastrophic” wildfires, according to New Mexico State University experts. Researchers at the university are halfway through a three-year study investigating the possibility that implementing a targeted grazing strategy for range cattle can significantly reduce the risk of catastrophic wildfires in certain ecosystems. Page 19 INDEX Beef Bits ..................................... P-3 Sale Reports ............................. P-13 Markets ..................................... P-22 Classifieds ................................. P-24 Sale Calendar ........................... P-27

A Crow Publication

Texas vets Bangs vaccinate adult cattle leaving state Due to severe drought, thousands of Texas cattle are being moved to other states. Texas Animal Health Commission (TAHC) records from Certificates of Veterinary Inspections indicate that 24,330 breeding cows left Texas in August 2011 compared to 3,815 breeding cows leaving the state in August 2010. Those cows were sharing the road with 151,325, versus 64,837, non-breeding cattle (feeders) during those two respective months in 2011 and 2010. And they still continue to leave the parched Lone Star State. Within that sixfold difference in breeding cows leaving desiccated pastures, it has been estimated that at least a third of those cows leaving Texas so far have been shipped to western states where grazing and hay are plentiful. A large portion of

those shipped cattle originate from some of the bigger ranches in northwest and West Texas. Some western states require brucellosis (Bangs) vaccination of female cattle prior to entry. Texas, a Brucellosis Free State, does not require cattle producers or owners in the state to calfhood vaccinate their age eligible (4 to 12 months) heifer calves against brucellosis. However, calfhood immunization is common and strongly urged by large animal veterinary practitioners, TAHC, USDA and many state and national cattle organizations. This past August, in order to assist producers in meeting those states’ entry requirements, TAHC provided a protocol for Texas licensed accredited veterinarians to use when administering brucel-

losis vaccination in beef and dairy cattle over the age of 12 months. Prior to this, only government officials could administer brucellosis vaccine to adult cattle in Texas in those situations when receiving states required brucellosis vaccination of all female cattle entering, yet calfhood vaccination has not been performed.

Vaccination of sexually immature female cattle against Brucella abortus, also known as Bangs disease, began more than a half century ago in an effort to prevent the transmission and spread of bovine brucellosis which can cause abortion in cattle, weak calves and low milk production. Brucellosis See Vets on page 14

EPA changes CAFO requirements The Environmental Protection Agency (EPA) has published a proposed rule for concentrated animal feeding operations (CAFOs) that was written primarily to settle another dispute between EPA and environmentalist groups, although EPA claims it is necessary to meet water quality protection responsibilities under the Clean Water Act (CWA). EPA finalized the rule in October, claiming it will protect the nation’s water quality by requiring CAFOs to safely manage manure. According to Ben Weinheimer, vice president, Texas Cattle Feeders Association, the rule would require CAFOs to submit information to EPA such as the owner’s name, contact information, exact location, and status of permit coverage, head count, and details on land application of manure, information that is already provided to the states. “EPA already has the information in their hands; the rule is duplicating information the states already have readily available,” Weinheimer said. According to EPA, this information would allow them to monitor and oversee the effectiveness of permitting programs already in place by state agencies and EPA regional offices. See CAFO on page 15 Photo courtesy of Jeff Vanuga, Natural Resources Conservation Service.

Packer margins remain sharply negative

LIVE STEERS DRESSED STEERS CME FEEDER $121.02 $190.02 $140.00 WEEK ENDING: 10-27-11

Despite the lower cutout values last week, fed cattle prices were higher. The fed cattle market strengthened at $1 to $2/cwt. higher last week with sales at $120-121 in the south Plains and $120-122 in the Corn Belt. Dressed sales were reported at $189 to $192/cwt. “Given the enthusiasm and ‘hope-ium’ from the general market rally following the announcement of a ‘comprehensive package’ rectifying the European debt issues, cash cattle offerings returned the higher levels,” according to Andy Gottschalk with HedgersEdge.com. Dressed trade was $2 -3 /cwt.

higher at $190-192/cwt. The cash trend bias was steady to higher. The cattle complex is approaching an “overbought” condition, which could limit gains from current levels, according to analysts. “The latest Cattle on Feed report has not altered our outlook for higher prices in 2012,” Gottschalk said. Finished cattle prices are expected to trade in the low-$120s for the rest of this year and increase modestly in the winter, according to analysts. The 2012 spring price rally is expected to increase prices to the higher120s for March, April and May, with summer prices cooling to the mid-

$120s. Record annual prices are expected for 2012, averaging in the low to mid $120s compared to the previous record which will be set this year near $115. Last week’s cattle slaughter totaled 651,000 head, up 0.2 percent, or 1,000 head, from the previous week and down 669,000 head, or 2.7 percent, compared to the same week last year. Auction receipts totaled 288,200 last week, up from the previous week’s total of 245,000. Last year’s total was 278,000. Futures settled lower midweek. “Part of the selloff can be contributed to the ongoing roll of December long forward, but also

NEWS:

Time Sensitive Priority Handling

Cattle on feed up 5 percent Cattle and calves on feed for slaughter market in the U.S. for feedlots with capacity of 1,000 totaled 11.3 million head on Oct. 1, 2011. The inventory was 5 percent above Oct. 1, 2010, and the second highest October inventory report since the series began in 1996. Arizona, California, Texas and Washington posted the largest gains, up 17 percent, 10 percent, 12 percent and 15 percent, respectively. Placements during September were reported at 2.469 million head, slightly above 2010. This was unchanged from the prior year. Net placements were 2.4 million head. By weight category, those over 800 pounds declined 3.6 percent, 700- to 799-pound placements declined 16.5 percent, 600-699 pounds declined 8.8 percent, while calves under 600 pounds placed on feed increased 34 percent. “The placement weight distribution continues to be positive and will aid in preventing a backlog of cattle from developing in the foreseeable future,” ac-

cording to Andrew Gottschalk at HedgersEdge.com. The inventory included 6.95 million steers and steer calves, and accounted for 61 percent of the total inventory. Heifer and heifer calves accounted for 4.32 million head, also up 5 percent from 2010. According to Gottschalk, the weights showing higher placements of cattle under 600 pounds going

U.S. CATTLE ON FEED 1,000+ Capacity Feedlots Million Head

2010

2011

12.0 11.0 10.0 9.0

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

See Cattle on feed on page 10

I think the grains and livestock sold off sharp going into the close on concerns over the financial well-being of a major futures clearing firm in Chicago/New York after the company’s stock lost 70 percent of its value in the last two days,” Troy Vetterkind, Vetterkind Cattle Brokerage, said. “We got December live cattle down into some pretty good support [midweek] at $120 and given my ideas of a stronger cattle market for at least another week or two, I think we can expect to see a bounce higher off that support going into next week,” Vetterkind said. The October live cattle futures contract ended the previous week at $121.97/cwt., up 27 cents from the prior week’s close. December fed cattle lost $1.05 to end the week at $122.15/cwt. February live cattle futures settled at $124.80/cwt., down 57 cents. April 2012 live cattle futures moved $2 per cwt. higher in September and have since added another $2 in October. On Oct. 21, April 2012 futures approached $130. Packer margins remained sharply negative, as much as $56 per head. “Nothing much has changed in the fundamentals of the cattle market; numbers remain relatively tight, beef sales are reportedly improving in forward timeslots, which gives packers incentive to own cattle process as the kill is running 4,000 head See Market on page 23


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.