MARKETING...
Camera Changes
Adjusting to packinghouse camera adjustments.
Many industry participants are aware USDA announced in late October that adjustments to camera carcass grading were necessary. The latest generation of camera, called Gigabit Ethernet, or “Gig E,” had been introduced last winter and deployed by several packing plants early last summer. As a track record developed for the new camera over the summer through October, it became evident to some observers that the new cameras were assigning quality grades more generously than the previous models.
A “sameness test” was conducted to determine if this were true. USDA concluded that an adjustment was necessary to bring the new Gig E camera technology back into alignment. It is important to know that not all packing firms had switched to the Gig E camera, and the consequential impact of the adjustment does not apply to all packing plants. Read more.
In the Cattle Markets
Ag economist analyzes exports and domestic beef disappearance.
The latest trade data released last week showed that impressive export totals continued through the month of September. Total beef and veal exports were 13.95% higher in September 2017 than in September 2016. Year-to-date available, total exports are up 14.46% during the first nine months of 2016. In total, exports are up about 263 million pounds (lb.) year to date compared to last year.
The largest increase was again in exports to Japan. U.S. beef exports to Japan were up nearly 40% compared to September of last year. Japan imported 85 million lb. of U.S. beef in September. On the year, exports to Japan are up 29% compared to 2016 levels. Exports to Canada and Mexico both grew about 8% compared to September 2016. Exports to mainland China totaled a little more than 1 million lb. in September, which made China the 15th largest importer of U.S. beef for the month. Read more.
Cattle-feeding Returns Improving
Returns climb above $500 per head in May.
Cattle-feeding profitability has been on a roller coaster ride the last couple of years, according to Purdue University Extension economist James Mintert. Estimated cattle-feeding returns calculated each month by Iowa State University Extension provide insight into the situation Corn Belt feeders face.
“According to the Iowa State data, which assumes that cattle are placed on feed each month with inputs purchased and fed-cattle sold in the cash market without any risk management, cattle feeders suffered horrific losses in both 2015 and 2016,” Mintert says. “Losses continued throughout 2016 and still averaged a loss of $117 per head for a typical yearling-feeding program and a loss of $216 per head for a typical calf-feeding program during 2016’s October to December quarter.” Read more.
Market Update
Market direction is uncertain, though holiday demand looks steady.
Early November’s federally inspected cattle harvest, at 623,000 head, was a fair reduction on the prior week’s 642,000. The fed-steer/heifer market ended the huge rally of $12 per hundredweight (cwt.) during the previous two weeks with a slightly lower average just above $123 per cwt. on a live basis. As mid-November began, market direction was anyone’s guess, but when live-cattle futures in Chicago faltered early, cattle feeders quickly gave up hope.
Carcass weights could move higher as the mid-November reports become available, but at this point we remain 16 pounds (lb.) under a year ago on steer carcasses at 901 lb. in the latest data. The October Cattle on Feed report is due Nov. 17, but the current picture shows fed-cattle supplies sufficient, but declining through the end of the year. Read more.
The Source: Star Creek Ranch
Nevada rancher uses AngusSource in building his American dream.
In 1978, 16-year-old Salvador Galindo set his boots down in the Pershing County sagebrush, driven only by the hope that a job as a ranch hand in the high desert of Nevada could get him farther than anything in his home country.
The teenager was armed with little more than a few dollars for gas, a young bride-to-be waiting for him in Mexico and a dream. Read more.
Calf Market Trends, Forage Production
Highlight Cow-calf Clinic
Experts talk frame size, color and weaning weights of optimal market calves.
Beef cattle producers from throughout south-central Texas learned more about producing calves that fit the current market and enhancing forage production throughout the year at the 46th South Central Texas Cow-Calf Clinic in Brenham.
This year’s clinic featured a panel of cattle buyers that provided participants current market trend information, what buyers are looking for in the calf market and ways for cow-calf producers to monitor market prices. Read more.
First-class Feeder-cattle Marketing
CAB beef cattle specialist shares tips for marketing feeder cattle in today’s marketing environment.
Growing up on a Colorado cattle ranch, earning an animal science degree and riding for the Certified Angus Beef® (CAB®) brand for nearly 16 years, Paul Dykstra has learned a thing or two about “first-class feeder-cattle marketing.” The beef cattle specialist presented on that concept and its evolution at Angus University during the Angus Convention Nov. 4-6 in Fort Worth, Texas.
Before the information age, buyers usually didn’t know more than weight, sex, condition and breed type, Dykstra shared.
“That pales in comparison to all we have today,” Dykstra said, noting satellite and internet sales with buyers sitting at home. “It brings up some interesting challenges. We don’t have to pay as much attention to relationships — marketing is less personal today than it ever has been.” Read more.
Angus Calendar
To view the Angus Calendar, a comprehensive list of Angus sales, click here.