Posts Tagged ‘Paleolithic Diet’

Record U.S. Corn Crop May Bring Welcome Relief For Beef, Pork Producers

Tuesday, January 12th, 2010

The record U.S. corn crop offers cattle and hog producers a prospect of something they haven’t had in a while: profits.

American farmers reaped a 13.15-billion-bushel corn harvest in 2009, up 2% from a November projection and up 8.8% from 2008, the U.S. Department of Agriculture said in a report Jan. 12. The 2009 estimate topped the previous record of 13.04 billion bushels in 2007. Despite an unusually wet spring that delayed planting, corn yields averaged a record 165.2 bushels per acre in 2009, up 7.3% from the 2008 average of 153.9 bushels, the USDA said.

The unexpectedly large crop sent corn futures on the Chicago Board of Trade plunging, with the March contract tumbling 30 cents, the maximum daily trading limit, to $3.92 ½ a bushel. Further corn price declines would bring welcome relief for cattle and pig producers squeezed by high feed costs in recent years, analysts said.

“As corn gets cheaper, it costs less to feed cattle to market weight,” said Bob Short, senior livestock analyst in Chicago with broker PFG Best. “No one’s made any money raising hogs in the past 28 months and no one’s made any money raising cattle in the past 18 to 20 months.”

Livestock feeder profits will return “if corn goes down and stays down,” Short said. “There’s no guarantee these guys will get back into the black. But at least it gives them hope they haven’t seen in the past couple years.”

The report helped send CME Group feeder cattle futures higher, with the March contract reaching 98.2 cents per pound, the highest price since last fall. Near midday, March feeder cattle futures were up 1.25 cents, or 1.3%, at 97.65 cents a pound, while August was up .925 cent at $1.005.

Corn on cash markets in the Midwest is currently about $3.70 a bushel, Short said. If prices fall to $3.20 to $3.30, livestock feeders’ futures’ “will brighten,” Short said. “They probably will turn profitable.”

Still, cheaper corn may encourage livestock producers to place more animals into feedlots, and the increased supply may pressure cattle and hog prices in the second half of 2010, Short said.

October live cattle futures, which reflect slaughter-ready animals, fell 0.175 cent to 89.8 cents a pound around midday, on the CME. June lean hog futures fell 0.75 cents to 78.6 cents a pound.

Additionally, futures traders continue to expect high corn prices throughout the year. Corn for December delivery traded at $4.17 ½ a bushel at midday today on the CBOT, down the 30-cent limit but still up more than 30 cents over the past three months.

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com

Talking With Dr. Matt Hersom About Southern Cattle

Monday, January 4th, 2010

Dr. Hersom has experienced the difference between Northern and Southern cattle first hand. He grew up in Iowa and attended Iowa State University before earning his doctorate at Oklahoma State. He got to know Midwestern cattle and their nutritional requirements eye-to-eye, you might say.

His career path headed in a Southeasterly direction, though, taking him to the University of Florida where he’s an assistant professor and Extension Beef Cattle Specialist doing research in the nutritional requirements of Southern cattle. And there is a difference, he noted, especially when it comes to forage.

 “Southern grasses are much different than the legumes and grasses that grow on the Great Plains,” he said. “We’ve got tropical and subtropical grasses here that stop growing when the temperature drops below 60 degrees. Our warm season forages don’t tolerate cold weather and forage quality drops off quickly. We have lower quality grasses with less degradable protein. We need to understand the strategies required to supply proper nutrition, especially for rumen health.”

Talking about supplemental protein resources, he said, “We’re starting to look at DDG’s for the first time. We haven’t done much research because distillers grains weren’t generally available in Florida but we have a new ethanol plant in south Georgia, now, so we need to do some research on how DDG’s effect our feeding strategies.

Dr. Hersom pointed out an advantage enjoyed by Southern cattle feeders; access to other protein resources that give them more flexibility in building an adequate ration. “We can use whole cottonseed and wet brewer’s grains which makes our rations unique,” he said.

Hersom is finishing a study on including soy bean meal as part of the cattle ration. “With soy bean meal, we had good weight gains with heifers. We followed it up with two years of feeding without a soy additive and couldn’t get the gains we wanted. Right now, we’re trying to identify the optimum level. We’re trying to find out how much we need to include with DDG’s but we’re just 56 days into those trials.”

 “The feeding phase should be concluded in late spring next year. We’ll have the data ready mid-summer and take it through peer review. We plan to make our findings available in 2011.”

Hersom is concerned about ‘nutrient synchronization’ which he defines as the balance of nutrients within the rumen to optimize feed utilization and improve animal performance.

Simply put, synchronized cattle nutrition increases ruminal metabolism which causes an increase in intake and digestibility. Your herd benefits by an increase in nutrient extraction. In laymen’s terms, it means they get more out of their feed.

It’s a concept that’s not familiar to many cattle feeders but understanding it can mean the difference between profit and loss. With the recent increases in feed component costs, extracting more nutrients per pound of feed is an attractive concept. Corn prices have been particularly volatile, for instance, creating some serious losses recently. The price of feeder hay has almost doubled in the last half decade and its availability has been spotty.

It might have been a back hand suggestion at a method of reducing those ballyhooed green house gasses emitted by bovines worldwide when Dr. Hersom was quoted this way: “In optimizing the use of the feed going into our cattle, we can minimize the outputs that come out of the back end of the animal.”

In fewer words, Hersom was saying better rumen health can mean fewer methane emissions and less solid waste. “The more efficiently our cattle use their nutrients, the less impact they will have on the environment.”

It seems like a concept that will delight cattlemen everywhere – better use of feed means lower feed bills without losing weight or quality – and please the environmentalists, too.

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com

In The Cattle Markets: Feedlots Continue To Fill Up

Wednesday, December 2nd, 2009

USDAs Cattle on Feed report released two Fridays ago indicated higher numbers of cattle on feed, in feedlots with capacity of 1,000 head or more, for the second straight month.

The 11,134 million head on feed was 1.5 percent higher than last year and over 6 percent above last month. The trade was expecting a 1.6 percent increase from last year, so the report was viewed as neutral to slightly positive for prices.

October placements at 2.474 million head were 1.5 percent more than last year, but under the 2.6 percent average of analysts’ pre-report estimates. Furthermore, October 2008 was a low placement month by historic standards at over 10 percent below 2007. So, although higher in 2009, placements were still nearly 8 percent below the 2003-2007 average, as calf crops continue to trend lower. Placements weighing over 700 pounds were up over 8 percent from last year, while the under 700 pound category was down 4.2 percent. One of the reasons for placements of heavier weights is the much improved pasture and range conditions in much of the U.S. that allowed yearlings on grass to gain well and reach market weight and the lighter calves to remain on ranges with cows. For example, early fall calf marketings in North Dakota have averaged 75 percent of last year’s levels.

Marketings in October came in at 96.7 percent of last year compared to pre-report estimates of 97.1 percent. Interestingly, South Dakota showed a 26 percent increase, followed by Iowa at 108 percent, and Nebraska at 101 percent reflecting the larger number of heavyweight cattle that were in Northern Plains feedlots. Both Texas and Kansas recorded marketings at 94 percent of a year ago.

Although there are more cattle on feed than last year, beef supplies should not be burdensome. Beef production in the 1st quarter of 2010 will likely be near year earlier levels according to LMIC estimates, and decline about 3 percent in the second quarter. And the number of cattle on feed is still about 3 percent below the 2003-2007 average.

Fed cattle prices will continue to be affected by domestic and export demand factors. Although some macro economists have declared that the recession is over, unemployment remains high and restaurant business continues to struggle. And, third quarter beef exports were down about 19 percent from last year.

The Markets

Fed cattle prices moved lower for the third straight week. Trading and demand in the North was light on Tuesday, with moderate trading on Wednesday, followed by light trading and demand again on Thursday. Trading was moderate in the Southern Plains on Thursday with light to moderate demand. The 5-area fed steer price was down almost a dollar at $82.77 on a liveweight basis and down over a dollar at $130.05 on a dressed basis. The Choice boxed beef price increased 16 cents to $140.10, while Select declined $1.63 so the Choice-Select spread increased to $7.83.

Feeder cattle prices last week were mixed and affected by local conditions. The CME January feeder cattle futures contract fell to life of contract lows in mid-week as December corn futures again rallied above $4 per bushel. By the end of the week feeder cattle futures recovered a $1 as corn lost a dime. 700-800 pound feeder steers were lower in Oklahoma and Montana. The 7-8 weights in Montana were all spring born calves. Steers in Nebraska averaged about $4 higher with moderate to very good demand from feedlot buyers. 500-600 pound steer calves were also down slightly in Oklahoma and Montana, but averaged about a dollar higher in Nebraska.

Corn prices in Omaha on Thursday were unchanged from the previous week. Prices for DDGS in Nebraska declined 50 cents per ton while WDGS prices advanced $1.50.

Source: www.cattlenetwork.com

www.PerryFarmsGrassFedBeef.com