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No Canadian Border Reopening This Summer by Steven D

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No Canadian Border Reopening This Summer by Steven D The National Livestock Weekly August 23, 2004 • Vol. 83, No. 45 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication No Canadian border reopening this summer By Steven D. Vetter WLJ Editor — Veneman says August out of BSE SurveillanceWeekly totals: June 6 through August 15Testing USDA officials recently indicated final regulations question. governing full resumption of beef and cattle imports from Canada won’t be issued anytime this summer— — Lobbyists say 5,000 and that they are still in the midst of finalizing the rule- delay to last after making process on the issue. election. In addition, beef industry lobbyists told WLJ that any 4,000 expansion of Canadian beef products to be accepted by the U.S. won’t happen until after this November’s See Border page 6 presidential election. The agency initially proposed reopening the border to Canadian beef last year; it has 3,000 been largely closed since the discovery of a BSE-infected cow in Alberta in 2003. But after a BSE-positive cow, of Canadian origin, was found in Washington-state last December, US- DA postponed the proposal and reopened the comment period. 2,000 BSE tests conducted on a weekly basis continue to escalate, According to Agriculture Secretary Ann Veneman, her agency is now in the process of and several USDA officials thought the 5,000 test mark could be hit by the end of the month. For the first 11 weeks of the reviewing all comments on the matter, and that the sheer volume of public input will de- agency’s stepped up testing, a total of 37,742 BSE tests had lay any regulatory decision until after the end of August. 1,000 been conducted, with only two inconclusive tests reported. “The amount of comments received were much more numerous than we had originally Corn condition ratings decline; $2 unlikely — Hot growing er kick in and start to progress the Last Tuesday’s crop progress re- On par with usual development, projection, which means a 10.7- weather lacking. maturity of corn plants. While a port, released by USDA’s Nation- 23 percent of the corn crop is dent- 10.75 billion crop is more likely. record setting crop is still expect- al Agriculture Statistics Service ed nationally, while 96 percent is “I just don’t think it can get hot By Steven D. Vetter ed, the most recent forecast of 10.93 (NASS), showed 73 percent of U.S. silking, and 57 percent has reached enough for an extended enough pe- WLJ Editor billion bushels is said to be a little corn in good or excellent condition, dough stage. On the last two cate- riod of time to spur corn plants There is some uncertainty start- overstated. compared to 76 percent the previ- gories, this year’s crop is just a few back to their maximum produc- ing to surround the 2004 corn crop As a result, corn prices aren’t ex- ous report. Last week’s figure was points off the five-year average tion, particularly in the western as some major producing areas pected to drop to the $2 level like still 13 percent higher than the fig- pace. In the eastern Corn Belt, corn half of the Midwest and eastern have yet to see hot growing weath- some earlier projections indicated. ure for the same time last year. development is ahead by 13 points part of the northern Plains,” said Several agronomists and corn in Illinois, 10 points in Indiana, John Backenfield, crop analyst with market specialists said that while and five points in Ohio. In Iowa, moisture has been abundant and corn development is now behind Springfield, MO, based AgriAnalyt- worthwhile, it hasn’t been accom- schedule. Corn development in the ics, Inc. “It’s not out of the realm of Prairie dog removed panied by hot temperatures, and Dakotas has also fallen well be- possibility but it’s highly unlikely, that has led to corn being a little hind the usual pace. particularly with weather forecasts from ESA candidate list more waterlogged than normal and All other states are said to be indicating unseasonable wet condi- taking away from some of the qual- steady with normal corn develop- tion through most of this month.” By Sarah L. Swenson ity attributes. ment. Even if 2004 production turns WLJ Associate Editor However, the lack of intense heat Several market analysts said last out to be 10.7 billion bushels, that The U.S. Fish and Wildlife hasn’t resulted in any slowdown week’s report could result in 150- will be almost 600 million more Service (FWS) has officially in the development of the nation- 200 million bushels being taken off than last year’s record haul. As a decided that the black-tailed al corn crop, statistically speaking. of this month’s USDAcorn harvest See Corn on page 20 prairie dog no longer needs to be a candidate for listing un- der the Endangered Species Act (ESA). The decision, Fed cattle gain on Labor Day passed down by Secretary of rally Interior Gale Norton August 12, is a major victory for both private Cattle markets were much but August futures fell $1.70 Thurs- adding inventory to the front end landowners and states since it restores state jurisdiction for man- stronger last week, fed cattle trade day, and softened their resolve, and supply. aging the prairie dog. was up $2, and feeder cattle trad- the northern dressed trade was be- The August 1 Cattle-on-Feed re- FWS cited an updated evaluation of the “best available scientific ed $3-5 higher on good demand for tween $137-138. Trade volume for port, out last Friday, was expected information” as a reason for removing the prairie dogs. This new sci- both calves and yearlings. the week was moderate. to show placements down 13 per- ence came in the form of prairie dog population surveys FWS con- Most live fed cattle trade was be- Andy Gottschalk at Hed- cent, marketings down 15 percent, ducted across several states. FWS reported that the surveying tech- tween $86-87, $2 stronger than the gersedge.com said that they expect and cattle-on-feed 2.5 percent high- niques they used have greatly improved since the species was first prior week. There has been good La- to see the market soften into mid- er than last year. determined to be a candidate for listing in 2000. bor Day demand from retailers September. The fact is we’re not Gottschalk said that even though These recent surveys have proved that disease impact, chemical which has driven boxed beef values killing enough cattle, which will supply is becoming a problem, he control, recreational shooting, as well as other factors are not sub- nearly $5 higher over last week. is also concerned about consumer stantial enough to put prairie dog populations at risk. FWS also re- again put some pressure on the fed However, the Labor Day market market. This next Cattle-on-Feed demand which he says is leveling ported, based on their surveys, that black-tailed prairie dogs are more is for the most part over and retail- off from a strong growth trend. In able to persist over time from the ongoing impact. report will show that the supply of ers will again be cautious of the fed cattle on feed for more than120 the larger economic perspective, “With new information regarding the range-wide impact of disease, beef market which has had a hard higher energy values are starting chemical control, and other lesser factors, and recent state estimates days will be 40 percent over a year time staying above the $140 level. to have an effect on consumer beef of occupied black-tailed does not meet the Endangered Species Act’s ago. Gottschalk said that the larg- Cattle slaughter for the week purchases. The competing meats definition of ‘threatened’,” said Ralph Morgenweck, director of FWS’ er carcass weights will support the ending August 14th was at 640,000 large front end supply of finished have mounted an aggressive cam- Mountain-Prairie region. paign to get their share of the high FWS’ definition of “threatened” is any species which is likely to head, and for this summer would cattle. Carcass weights are 16 be considered strong. Slaughter protein Atkins diet, so beef pro- become an endangered species within the foreseeable future through- pounds over a year ago and 15 See Markets on page 15 out all or a significant portion of its range. Not only did FWS eval- was expected back up to the pounds over the five year average. uate the threats to the prairie dog, but they also estimated the 630,000 level this week and then ta- Jim Robb at the Livestock Mar- acreage of their habitat. Currently, state agencies estimate there is per off even more for the balance keting Information Center prefers approximately 1,842,000 acres of occupied black-tailed prairie dog of the month as seasonal demand large front end supplies in a differ- habitat across the U.S., as opposed to a projected 676,000 acres in comes into play. The packer mar- ent way. He said that the percent 2000. gin index was at a positive $3.50 per of cattle in the yield grade 4 cate- FWS also said 51,589 acres of prairie dog habitat exists in Mexi- head, the first profit they have seen gory is up 12 percent and has been co and Canada.
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