Tag Archives: cattle

  • Wheat is the most confusing market right now
  • Light buyer support for soybeans
  • Dry weather concerns
  • Corn isn’t really expensive…yet beans have some good value
  • Cattle had some struggles in the trade, falling off the cliff today
  • Make sure you remember what kind of year this is-does that set the stage for 2021
  • Does the downtrend in cattle set the tone for cash this week?

 

  • Fundamental news is bullish
  • Funds position on the December cattle-risk off attitude
  • Election still has a “hold” on the markets
  • Why are cash bids so low?
  • Is the stock market worried about the election?
  • Seeing a decline in the grade…does that mean we are getting current?
  • How are weights?
  • Fund liquidation vs. good fundamentals
  • Hogs…continue to have export news to China
  • Tech picture on the hogs looks good
  • Hogs vs. cattle in the trade
  • Oct hogs go off the board tomorrow
  • Farmers selling beans…did it happen to soon?
  • Grain summary is China.
  • Harvest clips along

 

OMAHA, Neb., (GLOBE NEWSWIRE) — Green Plains Inc. (NASDAQ:GPRE) today announced the sale of its remaining 50% joint venture interest in Green Plains Cattle Company LLC to a group of investment funds that include AGR Partners and StepStone Group, among others, for approximately $80 million, plus closing adjustments. The transaction was signed on October 9, 2020 with an effective date of October 1, 2020.

“With the sale of our remaining ownership in Green Plains Cattle Company, combined with our recent quarterly distribution and earnings bonus from performance of the cattle business, we have added approximately $96 million of liquidity to our balance sheet. This sale allows us to redeploy capital to support our long-term objective of building a technology focused biorefining platform, producing sustainable, high-value, high-protein ingredients the market needs,” said Todd Becker, president and chief executive officer.

Green Plains entered the cattle feeding industry in June 2014, with the purchase of Supreme Cattle Feeders, a 70,000-head feedyard in Kismet, Kan. Over the past six years, Green Plains Cattle Company grew to become the fourth largest cattle feeder in the United States with a total capacity of more than 355,000 head of cattle across six feedlots in Colorado, Kansas and Texas.

“This transaction further streamlines our business to focus on the transformation to a world-class provider of high value ingredients, which includes the deployment of high protein technology as a natural line extension to our platform. The proceeds from the sale and distribution, coupled with our previously announced tax refund and $75 million in protein financing, will add nearly $225 million of liquidity to Green Plains, or over half the remaining amount needed to fund the build-out of high protein technology,” added Becker.

As part of the transaction, Todd Becker will remain on the board of directors of Green Plains Cattle Company for the next year to assist in the transition.

The Innovation Center for U.S. Dairy Monday unveiled the Net Zero Initiative. The industry-wide effort will help U.S. dairy farms of all sizes and geographies implement new technologies and adopt economically viable practices.

The initiative is a critical component of U.S. dairy’s environmental stewardship goals. The plan is endorsed by dairy industry leaders and farmers to achieve carbon neutrality, optimized water usage and improved water quality by 2050. The organization also announced a key milestone on its journey toward carbon neutrality, an up to $10 million commitment and multi-year partnership with Nestlé to support the initiative and scale access to environmental practices and resources on U.S. farms.

The goals include becoming carbon neutral or better, optimize water use while maximizing recycling, and improve water quality by optimizing utilization of manure and nutrients. Officials say dairy companies and farms are already contributing to the goals in individual ways, and the dairy community will continue those efforts through the U.S. Dairy Stewardship Commitment.

  • Wheat up big again
  • All the grains up again
  • How can we interrupt negative numbers on the deferred contracts?
  • All of this related to weather globally
  • We are looking at potential serious weather issues
  • China, even on holiday, jumped into the markets to make purchases
  • Does China panic in weather markets both here & in South America
  • Feeder cattle continue to struggle

  • Key technical points on the corn & soybeans
  • Who will be the next big bean buyer?
  • Funds are they going to be long?
  • WASDE on Friday…how does that effect livestock?
  • Feeder cattle index has had a history of putting in a top in the beginning of October
  • What should we do with the calves? Do we hold & wait?
  • Cattle have been stuck in a range-does that make a boring trade?
  • Boxed beef is the low being put in?
  • COVID cases picking up does that make livestock nervous?

  • Chance for more rain in South America…really not a make or break
  • WASDE report out on Friday
  • Crop Progress report
  • Export sales holding strong
  • Ethanol has some support taking place
  • Dollar trade & grains
  • Cash cattle is hanging in there
  • Lack of momentum in the feeder cattle
  • Seeing a lot of cattle coming off grass
  • Hogs keep pushing to the upside

 

South Dakota Representative Dusty Johnson introduced the Price Reform in Cattle Economics Act. The House Ag Committee member says the bill would increase transparency in the cattle market, as well as improve risk management for producers and support new and existing meat processors.

The Hagstrom Report says he wrote the bill as a response to recent extreme cases of market volatility after the Tyson Plant fire in Holcomb, Kansas, in 2019, as well as during COVID-19. Johnson says cattle country is hurting and hasn’t fully recovered from the recent challenges. “USDA has laid out multiple areas where Congress could implement real solutions to improve the market,” he says. “The PRICE Act is the answer to many of the years-long challenges producers have battled.”

He says cattle producers want a fair market and fair prices. “Congress needs to step up for cattle country,” Johnson adds, “which is what the bill will do.” The PRICE Act is supported by groups like the American Farm Bureau Federation, South Dakota Cattlemen’s Association, and the National Cattlemen’s Beef Association.

  • Exporting ethanol to Brazil…now they are trying to get plants started up
  • Circle the wagon on the USDA report of Wednesday
  • Weather in South America & Russia dry patterns picking up
  • What are the yields looking like?
  • October 9th crop report
  • Will China keep buying? Alliances in South America
  • Livestock showing tighter numbers on cattle
  • Asia buying in October for the holidays will see what it brings
  • Hogs see cash on fire…moved up to some levels that could see a top out

 

There was plenty to talk about coming off of the USDA report that sent corn, soybeans, and wheat sharply higher but also threw a wrench in cattle trade. Arlan is keeping an eye on weather in both South America and the Black Sea Region. He also breaks down cash trade in cattle and why hogs are still trying to sort out their latest report almost a week later.