Tag Archives: corn

MANHATTAN, Kan. — Feed cost is often one of the most expensive inputs when trying to balance the beef cattle budget. To help reduce that expense, midwestern producers will sometimes look to alternative feed products such as wet corn gluten, corn dried distillers’ grain with solubles (DDGS) or soy hulls, to name a few.

“Often alternative feeds are a by-product of some other production system,” said Brad White, Kansas State University veterinarian and director of the Beef Cattle Institute. Factors to consider when looking to feed by-products was the topic of discussion on a recent BCI Cattle Chat podcast.

In the spring, some ethanol plants changed their production to COVID-19-related work such as producing industrial alcohol for hand-sanitizer leading, to a concern that typical feed alternatives for the fall would not be available or price competitive, according to Bob Weaber, K-State beef cattle extension specialist.

“Ethanol production has come back and it appears that there is availability and a reasonable cost structure in the marketplace for DDGS, so that is good news for cattle producers,” Weaber said.

When selecting the co-product to feed, veterinarian Bob Larson recommends producers look at their feeding mechanisms.

“A lot of these by-product feeds don’t flow well through the augers and chutes because some can be really dusty while others are wet,” Larson said. “They can also be harder to handle because wet products will have a shorter storage life and dry products tend to blow away more easily.”

Weaber added there can also be differences in the quality of the alternative feed depending on where it is sourced.

“Some plants will separate the oil fraction off the distillers’ products, impacting the energy content of the feedstuff, while there can also be a variation in the dry matter content,” Weaber said. For that reason, he advises producers obtain or conduct a nutrient analysis of the feedstuffs when possible.

Larson cautioned producers to look at their total feeding system or risk severe consequences.

“Some products have potential toxicities associated with them such as a high amount of sulfur in some distillers’ grains or corn gluten feed,” Larson said.

The experts agreed that the main motivation for considering alternative feed sources is price.

“Feeding co-products can be extra work and producers need to be aware of the potential for negative health outcomes, but if they can manage for those factors, alternative feeds can offer a price advantage helping to increase the profit margins,” White said.

To hear the full discussion on alternative feeds, listen to the BCI Cattle Chat podcast.

  • We can start out with a brief market recap.
  • Why were the corn and soybean markets down so much this week?
  • What impact are the funds having on the markets at this time?
  • How does the weather look in South America?
  • What Impact do you think the La Nina will have on South American Production?
  • How is the harvest progress?
  • What are the yields like so far?
  • What will the corn and soybean markets be focused on going forward?
  • Where could the corn and soybean prices be different yields.

 

Summary

The final week of September and the 3rd quarter had dawned and actually the market is feeling optimistic. From last week’s doom and gloom, Monday’s tune has changed to the bright side. Congress is working on getting back to fiscal stimulus talks, economic data is still looking decent in the US and some states are opening back almost to pre-covid levels. Now there is still the looming European lockdowns, a hostile federal government worrying about Supreme Court Nominee’s and possible negative economic data to come.

In the country on on Friday there were scattered bids, but it appeared that the majority of business had concluded for the week. Cash developed different this week than what it has over the past couple of months. Feeders held until Thursday when cash finally developed at $105 live $165 dressed. Both $2 higher than last week’s weighted averages.

For the week ending September 19, 2020, Imported Beef Passed for Entry in the U.S. totaled 43,255, 118.87% of the previous week and 101.14% of the 4-week average.

 

Expected Slaughter numbers Monday

Cattle

120,000 hd today 119,000 hd wk ago 116,060 hd yr ago

Hogs

483,000 hd today 481,000 hd wk ago 485,045 hd yr ago

 

Midday Carcass Value Monday

Beef

Choice dn 1.67 217.67

Select dn 0.58 206.40

C/S Spread 11.27

Loads  89

Pork

Carcass up 5.72 97.04

Bellies up 21.12 171.28

Loads 157

Grain Settlements

  • Corn unch up 2 1/2
  • Soybeans dn 1 3/4 – 6 1/4
  • Chicago Wht up 5 1/2 – 6 1/2
  • Kansas City Wht up 6 3/4 – 7 1/2

Livestock Settlements

  • Live Cattle dn 0.45 up  0.60
  • Feeder Cattle dn 0.25 up 0.95
  • Lean Hogs dn 0.77 up 0.95
  • Class III Milk dn 0.02 – 0.17

Pre-Opening Market Broker Commentary

Mark Gold, Top Third Ag Marketing, discusses overnight grains and what the trade may see today. Unknown destinations were back in the market for soybean meal. Audio unavailable 9-28


Jerry Stowell, Country Futures,  looks at what may impact the livestock futures today. Quarterly hogs and pigs report may prove bearish for the lean hog market . Audio unavailable 9-28


Mike Zuzolo, Global Commodity Analytics, takes a look at the midday trade. The broader market is seeing increased volatility as the US gets closer to election day.


John Payne, Daniel’s Ag Marketing, takes a closer look at today’s grain close. Soybeans finally hit the sellers wall, but it could just be harvest pressure.


Jack Fenske, York Commodities, looks at the closing market numbers. Grains could have put highs in, but Fenske says seasonally grains put highs in next week.

  • Right in the middle of soybean harvest
  • Export information on corn & beans
  • South America…where are they at with their crops
  • Quarterly stocks report…how does that affect the markets & compare to the October WASDE
  • US Weather & harvest

 

 

  • Change in the tone of the soybean trade…what does that mean for producers
  • Dollar trade
  • Equity indices what should we be looking for?
  • Volatility could set in as we get closer to the election
  • Where are the funds in soybeans?
  • The macro economics & how it will have an effect on grains
  • Double tops…how will that effect the cattle?

While the markets took a wild ride on Monday the NASS crop progress report looks fairly uneventful. Row crop harvest is getting started somewhat ahead of the five year average. That has been expected by many though given the early and swift planting that occurred. After big double digit increases in the soil moisture profile last week dry conditions have set back in and are slowly taking the soil moisture down.

In a full breakdown of the report we start with corn in the dent stage. It’s essientially complete across the country this week at 95%. That is up 6% from last week and still 5% ahead of the five year average. 97% of Nebraska corn is in the dent stage, 96% of Kansas corn is in the dent stage and 94% of Iowa corn is in the dent stage. All just a few points ahead of the five year average.

Corn maturity is also moving along swiftly with a nationwide rating of 59%. That is an 18% increase in the mature corn from a week ago. It’s also perfectly 10% ahead of the five year average. In the Midwest; 93% of the Nebraska corn crop is mature, 81% of the Kansas corn crop is mature and 66% of the Iowa corn crop is mature. All of these are ahead of their respective five year average, except Kansas which is 1% behind the five year average.

Corn harvest slowly moves along in the country up 3% nationwide from last week to 8% complete. Unlike the rest of the corn stages harvest is actually behind the five year average of 10%. Texas is by far the farthest along in corn harvest with 69% of the crop out of the field. Nebraska has 10% of the corn harvested. Iowa has 4% of the corn harvested. All these states are still ahead of their five year average. Kansas on the other hand has harvested 16% of their corn crop is 6% behind the five year average.

Finally with corn the overall condition of the crop remains little changed from last week. Nationwide the crop ticked up 1% to 61% good to excellent. Nebraska corn increased 3% to 63% good to excellent. Kansas corn remains unchanged week to week at 54% good to excellent. Iowa corn also remains unchanged week to week at 42% good to excellent.  Illinois corn follows the Nebraska plan with corn conditions rising 3% to 73% good to excellent.

Staying with row crops soybean dropping leaves is now considered 59% complete across the country. That helps it stay 9% ahead of the five year average. 82% of the Nebraska soybean crop has dropped leaves, 48% of the Kansas soybean crop has dropped leaves and 66% of the Iowa soybean crop has dropped leaves. All of these are well ahead of their five year average.

Soybean harvest is also now far enough along to be recognized by crop progress. Nationwide 6% of the soybean crop has been harvested. That is fully steady with the 5 year average. In Nebraska 10% of the soybean crop has been harvested. Iowa, 7% of the soybean crop has been harvested and in Kansas 2% of the soybean crop has been harvested. All of these are well ahead of the five year average of Kansas takes the cake doubling their five year average for soybean harvest.

Just as corn soybean condition rating is relatively unchanged week to week. Nationally the soybean crop is rated 63% good to excellent, unchanged week to week. Also remaining unchanged week to week is Illinois soybeans at 71% good to excellent and Iowa soybeans at 48% good to excellent.  Nebraska soybeans actually increased 2% week to week at 66% good to excellent. Kansas was one of the few states to see an actual decrease in soybean conditions with a drop of 6% to 45% good to excellent.

Now to sorghum. Sorghum maturity continues to be ahead of the  five year average with a national rating of 51% mature, 3% ahead of the five year average. Nebraska sorghum has reached 49% maturity. A solid 13% ahead of the five year average.

Sorghum harvest is starting to get underway. Nationwide 27% of the sorghum crop is out of the field. That is 2% behind the five year average. In Nebraska 2% of the sorghum crop is harvested. 1% behind the five year average.

Nationwide the sorghum crop is rated 51% good to excellent, down 1% from last week. In Nebraska the sorghum crop is rated 66% good to excellent. A sharp 6% decline from last week.

Winter wheat continues to go into the ground with 20% of the national crop planted. Just 1% ahead of five year average. Nebraska is well ahead of the Kansas at 40% planted. Kansas is 14% planted.

Winter wheat is also starting to emerge with 3% of the national crop above ground. 1% of the Kansas crop has emerged and 0% of the Nebraska crop has emerged.

After big gains last week pasture and range conditions fall this week. Kansas range condition fell 4% to 37% good to excellent. Nebraska pasture condition fell 1% to 40% good to excellent.

Soil moisture was also tightened this week due to dry conditions re-emerging. In Nebraska the topsoil rating dropped 6% to 48% adequate to surplus and the subsoil rating dropped 3% to 44% adequate to surplus. In Kansas topsoil moisture was unchanged week to week at 63% adequate to surplus, subsoil moisture actually increased 2% to 62% good to excellent.

You can see the USDA report here: https://downloads.usda.library.cornell.edu/usda-esmis/files/8336h188j/2227nd802/h415q0669/prog3920.pdf 

Clay Patton recaps the report here:

 

MANHATTAN, Kan. — EPA announced the interim decision for atrazine, marking the end of the registration review process and clearing the way for continued use of a key herbicide for Kansas farmers. The Kansas Corn Growers Association (KCGA) is a founding member of the Triazine Network, a coalition of organizations from a variety of crops across the nation that advocates for science-based regulatory decisions for the triazine herbicides. KCGA CEO Greg Krissek said today’s announcement is a positive step forward for atrazine, a product that provides needed weed control and is a valued tool in conservation tillage practices like no-till farming. Krissek and Missouri Corn CEO Gary Marshall, who are co-chairs of the Triazine Network, participated in a round table with EPA Administrator Andrew Wheeler today near Springfield, MO.

“We were pleased with the announcement at today’s round table discussion with Administrator Wheeler which affirmed the continued use of atrazine as well as simazine and propazine. This is a culmination of years of work,” Krissek said. “The next step for atrazine is the Endangered Species Act review, and we will continue to work with EPA as the agency prepares its biological evaluation for the ESA review that is expected to be published with a comment period this fall. Our organizations will remain closely involved in these regulatory actions surrounding atrazine and the triazine herbicides.”

The registration review has been underway since 2013, and this decision is a positive outcome for growers.

“Today’s news provides much needed regulatory certainty for farmers during a time when few things are certain,” said Triazine Network Co-Chair Gary Marshall. “We appreciate today’s announcement from EPA Administrator Wheeler. We thank the agency on behalf of the farmers who rely on atrazine to fight problematic weeds and employ conservation tillage methods to reduce soil erosion and improve water and wildlife habitat. “

Atrazine ranks second in widely used herbicides that help farmers control weeds that rob crops of water and nutrients. Utilized for over 60 years, atrazine is the most researched herbicide in history and has a proven safety record. Today’s announcement concludes the registration review process where EPA is required to periodically re-evaluate existing pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). The next step for the triazines is a draft biological evaluation required under the Endangered Species Act (ESA), which is expected to be published in October.

“This isn’t the last review of atrazine. In fact, the Endangered Species Act review will be key to the future of atrazine as well as other crop protection tools. Moving forward, we remain vigilant in ensuring the agencies involved utilize high-quality, scientific studies,” stated Marshall. “The EPA has said they will utilize the best available research, first in a letter the Triazine Network in 2019 and again today. Our stance has always been sound, credible science must win. We appreciate these commitments, and EPA must hold true to them in the ESA evaluation.”

Approved for use 1958, atrazine has been extensively reviewed by EPA and others over the decades and across administrations. The final ESA assessment is slated to be released in 2021.

Thursday brought about another strong day of gains in the grain market. Soybeans continue to hold well over the $10 mark. Looking at a continuous chart that puts soybeans back towards highs not seen since early 2018 before the US China trade war kicked off. Kyle Bumsted with Allendale Inc. believes this now give farmers a unique opportunity to go back and visit their marketing strategy. 2019 has been a year that farmers have seen plenty of government payments, but now the market seems to be giving opportunity to market at a profitable level.

Bumsted also gives strong insight into why the feeder cattle corn spread may be nearing it’s useful end. Rather feeders are looking at the cash difference between the fats getting on the truck and the lightweights coming off the truck. Finally there is the lean hog market that really caught fire on Thursday. Could it be starting to get top heavy or is there more room to go higher?

You can hear all of Bumstead’s comments here: