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TheBeefSite Newsletter - 7 August 2013

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Wednesday 7th August 2013.
Michael Priestley - Editor

Michael Priestley

Corn Prices Continue to Dominate Feedlot Picture

US Feedlot marketings are likely to remain strong into autumn but drop sharply into 2014 from October.

Mexican cattle imports will be down by 800,000 head by the end of the year and, with large heifer numbers placed in feedlots through the spring and summer, feedlot numbers will drop.

This is the outlook of Derrell Peel, cattle marketing specialist at Oklahoma State University who has estimated that 100-230,000 replacement heifers have entered the feedlot system this year.

This will pressure the supply side because these cattle cannot be placed for the remainder of the year, and secondly, because some expect heifer retention to increase around October.

These conclusions are drawn from an analysis that breaks down cattle on feed reports into sex, weight, breed and age.

In doing this, Darrel Peel has noted that, while the July data reported overall placements as lower, heavy animals - over 800lbs - were up 27 per cent.

Likewise, light placements - under 700lbs – were down 30 per cent. This, Mr Peel has concluded, is due to the pressure of corn bushel price which has forced the industry into placing cows on feed at a heavier weight, thus saving on finishing costs.

Spring data from Kansas shows steers have been on feed nine days less than last year’s average.

While cash and futures corn has subsided in recent weeks, the price of feed clearly rests on the minds of cattlemen.

Mr Peel said that this has been the case since 2011, when drought conditions began a period of flux in the beef markets.

But, little consolation has come from government reports that have cast a gloomy shadow over US business.

Quarterly growth figures of 1.1 per cent and 1.7 per cent are below the 2 per cent targets hoped to stimulate consumers into spending, said Missouri Economist Ron Plain last week.

However, good news came from markets with deadweight figures over $2 higher than the previous and $5 up year on year at $190.18/cwt.

This cannot be said for European farmers who have endured lower prices through July.

Prices for top grade heifers dropped 19c/kg to 438.4 c/kg with France recording the highest values at an average of 466 c/kg, the Livestock and Meat Commission of Northern Ireland has revealed.

Over in America, farmers are watching crop progress reports which 63 per cent of plantings in good or excellent condition last week.

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This Week's Articles and Analysis

Expression of Genes Controlling Fat Deposition in Two Genetically Diverse Beef Cattle Breeds Fed High or Low Silage Diets
Beef producers looking to control fatty acid composition in beef cattle tissues should account for genetics when devising silage diets.

EU Beef Farms Report 2012: Feed Costs Up 74 per cent Since 2000
A European Commission report has revealed that beef production costs have risen faster than output. Feed costs have increased between 45 and 74 per cent over the period between the year 2000 and 2009.

Mycotoxins and Their Control with Feed Additives
Following the recent publication of 'Mycotoxins Quo Vadis? Why Feed Additives?', first author, Dr Radu Marti, tells TheCattleSite why he wrote the book and how it can help animal feed and health professionals.

Interpreting the Cattle on Feed Report
By analysing cattle on feed reports by sex, weight and age, inferences can be made about the direction in which the feedlot sector is heading, according to Derrell Peel, Livestock Marketing Specialist, Oklahoma State University Extension.

Company News

Mycotoxin Workshop Supported by Biomin
BELGIUM - From 22 to 24 May 2013, the University College and University of Ghent, as well as the Society of Mycotoxin Research organised the 35th Mycotoxin Workshop.
Market Reports

EBLEX Cattle Weekly - 2 August 2013
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Global Beef Industry News

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CME: Futures End Mostly Lower, Friday
USDA Weekly Grain Update: Corn, Soy See Sharp Declines, Wheat Higher
EU Extends Beef Import Pact with US
Sales up Eight Per Cent at Land O'Lakes
Nutrition Agreement Makes Farm Bill More Difficult
CME: Futures Post Losses Closing Near Day Lows, Thursday
Research Allays Fears of Antibiotic Residues in DDGS
US Producers Have Hay and Grass on Agenda
CME: Cattle Futures Finished Mixed Wednesday
CME: Corn, Soybean Maintained Condition
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'Hazardous' Animal Product Seized By State
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   European Union

LMC: EU Beef Prices Drop Back on June Levels
Commission Opens Consultation on Family Farming
EU Trade Barriers Lifted with Four Latin American Countries


Nicaraguan Livestock Sector Maintains Output


SPACE President Passes Away
French Retailers Relax Grip on Beef Margins

   Costa Rica

New Vaccine Strain Furthers Brucellosis Treatment


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   United Kingdom

LMC: Steer Prices Back Slightly, Late July
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No Significant Increase Forecast in Prime Cattle Supplies
Dry Spell Causes Grass Concerns
Industry Forecasts Low Veal and Beef Output
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   New Zealand

Farmers Should Secure Feed Early


Maple Leaf Foods Records Loss
Cattlemen Welcome Import Levy
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Beef Marketing and Promotion Levy to be Applied to Imported Cattle and Beef
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Agricultural Agreement between China and Slovakia


Austrian Drought Triggers Emergency Support


Female Farmers Are Answer to Land Abandonment


Singaporean Visit Hopes to Increase Confidence in UK Beef’


Travelling Danes Expose Themselves to Salmonella Risk

   South Africa

Progress in Farming Sector Assessed by Committee

   Russian Federation

Moscow Seminar to Provide Breeding and Genomics Advice


Norwegian Fodder Crisis Leads to Culling


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