“The Industry’s Largest Weekly Circulation” The National Livestock Weekly May 9, 2011 • Vol. 90, No. 31 website: www.wlj.net • email: [email protected] • [email protected] • [email protected] A Crow Publication INSIDE WLJ Pace of corn planting lagging well behind normal LLIVESTOCKIVESTOCK OOUTLOOK—DespiteUTLOOK The corn plant- situation doesn’t change soon. through May 1 was well behind pace of 46 percent, 31 percent and strong prices for most agricultural commodities, the picture isn’t neces- ing season— Across the northern tier states, last year’s good start to the plant- 48 percent, respectively. sarily one of sunny skies and record which most in winter has refused to relinquish ing season. Most states were also Farther south, states such as profits. Rising input costs are squeez- the livestock in- its icy grip and last week, a fresh lagging their five-year average Nebraska and Missouri are also ing producers and there could be dustry were hop- round of snow, ice and rain fell pace for plantings. According to lagging behind in terms of planting some difficulties ahead for several ing would go across the region, flooding fields the NASS data, corn planting was progress. Farmers in Nebraska segments of the industry. PPageage 4 without a hitch— down the Mississippi River Val- only 13 percent complete across were just 15 percent complete with SSOUTHOUTH KKOREA—AfterOREA years of is off to a very ley and across major corn grow- the 18 major corn growing states. field planting, compared to last back-and-forth negotiation, it appears slow start this ing states. The result could mean That compares with 66 percent year when the crop was 44 percent that the federal government has final- year. Colder than normal tem- that unless fields dry quickly, complete on the same date in 2010 planted on the same date and a ly negotiated some key sticking points on critical trade treaties. Of peratures and above normal pre- some extremely vital acreage and a five-year average tally of 40 five-year average of 35 percent particular importance is a free trade cipitation has hampered field work could be switched to soybeans as percent complete. The major corn complete. In Missouri, farmers agreement with South Korea, which across much of the central and farmers scramble to get a crop in growing states of Illinois, Indiana were only 32 percent complete with could significantly bolster trade with southern Corn Belt states prevent- this spring. and Iowa were only 10 percent, 2 plantings, compared to 72 percent the key buyer of U.S. beef. PPageage 5 ing farmers from getting the crop According to USDA’s National percent and 8 percent complete, a year earlier and a five-year aver- BBREEDINGREEDING SSOUNDNESS—TheOUNDNESS planted, which could lead to yield Agricultural Statistics Service respectively, as of May 1, com- age tally of 52 percent complete. No. 1 determinant of profit potential problems later in the year if the (NASS), weekly planting progress pared with a five-year average See Corn on page 16 in a beef cow/calf operation is the birth of a live calf; turning out infertile bulls can have a tremendous impact PPhotohoto ccourtesyourtesy ooff BBetheth HHarrellarrell MMackenzie,ackenzie, BBakeraker CCity,ity, OORR on profitability in beef production systems. Despite that, the National Animal Health Monitoring Survey showed that less than 20 percent of producers in the U.S. perform breed- ing soundness exams on their bulls prior to spring turnout. PPageage 1144 LLANDAND RRELEASEELEASE BBILL—HouseILL Minority Whip Kevin McCarthy, R-CA, recently introduced H.R. 1581, the Wilderness and Roadless Area Release Act, to release federal lands that have been recognized as unsuit- able for wilderness or roadless desig- nations. Its passage would improve access and the ability to manage lands under the mandated multiple use concept. PPageage 1155 IINDEXNDEX Beef Bits . Page - 3 Sale Reports . Page - 7 Markets . Page - 10 Classifieds . Page - 12 Sale Calendar . Page - 14 CME Feeder Cattle Index $140 $135 $130 $125 $120 $115 Experimental vaccine shows $110 Price pressures continue $105 promise for bighorn sheep $100 $95 Concerns over pneumonia trans- West in recent years have led to to push fed cattle lower $90 JFMAM JJA SOND mission between wild bighorn concerns that other public lands Fed cattle prices trended lower again last week in early trade, 5 yr avg 2010 2011 sheep and bands of domestic sheep may soon follow the Payette’s lead. which was mostly complete by the end of the day Tuesday. Live grazing western rangelands have In the midst of this debate, re- cattle traded at $114 to $115 in the southern Plains, down $1-2 Weekly Beefy Production plagued land managers in the searchers at Washington State 560 from the prior week’s action with most showlist cattle report- Northwest for the last several University’s (WSU) College of Vet- edly cleaned up. Meanwhile, in the north, dressed trade was 520 years. The conflict reached a fever erinary Medicine have recently reported at $185 to $186 with only light volumes being reported pitch last year when Idaho’s Pay- begun making strides towards a for the week. Cattle in the north were reportedly a little greener 480 ette National Forest reduced do- resolution that may give both spe- than their southern counterparts, so the light volume looked to mestic sheep grazing by 70 percent cies the opportunity to coexist. 440 be enough to finish the dressed trade for the week. in an attempt to reduce interac- In February, researchers, led by Commodity fund liquidation in the ag contracts was a significant 400 tions between the two species. WSU professor Dr. ‘Sri’ Srikuma- factor in last week’s cash cattle trade. Prices for commodities last That decision has led to consider- ran, began testing on an experi- week took an early hit and it was widely reported that margin 360 able friction between sheep ranch- mental vaccine designed to boost J FMA MJ J AS OND calls in metals and oil trade resulted in the liquidation of some 5 yr avg 2010 2011 ers, who worry that their liveli- the immune systems of the big- agricultural commodity contracts, adding to the already significant hoods are now in peril, and envi- horns, allowing them to fight off downward pressure on contract prices. The result has been a great ronmental groups, many of whom pneumonia-causing bacteria. deal of volatility in the grain and livestock trade, with triple- contend that sheep grazing should Though Sri cautions that there are digit swings in cattle prices common over the past couple of weeks be removed entirely from public still many obstacles to be overcome as concerns about pull-through demand from domestic consumers rangelands. Compounding the is- before any type of practical use is LIVE STEERS DRESSED STEERS CME FEEDER and pressure from weaker than expected foreign and domestic $114.16 $183.99 $131.66 sue, increases in bighorn die-offs possible, the new vaccine does economic data pushing prices mostly lower. WEEK ENDING: 5-5-11 due to pneumonia throughout the See Bighorns on page 9 Retailers have been encountering some difficulty moving beef, according to reports, and with gas prices continuing higher ahead of the summer driving season, it’s likely that the situation won’t ease any time soon. Last Thursday, midday boxed beef prices were Utah wades into lower as a result of that pressure, with packers discounting prod- uct to keep the volume up. Choice boxed beef prices were down Wild Lands dispute $1.27 from the prior afternoon at $179.67 while Select was down 26 cents at $174.76. Volume showed signs of improvement at those Turbulence surrounding Secre- ta County, UT, and the Utah levels, which could indicate that prices could be nearing a level of Turbulence surrounding Secretary Association of Counties, which stability, which would, in turn, indicate that fed cattle prices could of Interior Ken Salazar’s contro- jointly filed suit against the Wild also be reaching a level of near-term support, although prices are versial Wild Lands policy only Lands policy on March 22. likely to trend somewhat lower into the summer months. The June seems to be increasing, and now In a press release, Utah Gov. live cattle contract last week was trading at $110.32 last Thursday, the big dogs are beginning to enter Gary Herbert said that the new which was very close to near-term support levels for the June fed the fray. On April 29, the state of Wild Lands policy would make cattle contract, a level which coincides with the March low, analyst Utah announced that it is filing null and void years of extensive Troy Vetterkind of Vetterkind Cattle Brokerage said last week. suit in federal court with the object planning and cooperation that “Technically, if you look at both live and feeder cattle charts, it of nullifying Salazar’s Secretarial went into drawing up local Bu- looks like we have put in some ‘head and shoulder’ tops for the time Order 3310, which brought the reau of Land Management (BLM) being. Price projections from such a top, by measuring from the Wild Lands policy into being. Resource Management Plans head down to the neckline, would take June live cattle down to The suit was filed by the office (RMPs), which are the product of $105-102 and August feeder cattle down to $125-122,” he said. Time Sensitive Priority Handling of Utah Attorney General Mark a public input process mandated “Just something one should be aware of and need to realize in case Shurtleff in the U.S.