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Cold Storage Report Chills Futures “The Industry’s Largest Weekly Circulation” The National Livestock Weekly May 28, 2012 • Vol. 91, No. 34 website: www.wlj.net • email: [email protected] • [email protected] • [email protected] A Crow Publication INSIDE WLJ Record live cattle exports through the Port of Galveston WWETLANDETLAND IIMPROVEMENT—MPROVEMENT USDA’s Pier 34, at the Port of Galveston, “But the problem is, they can’t demand in 2011 from Russia, shipments brings with it some Natural Resources Conservation Ser- is the loading dock for what offi- come in at the same time,” Port Turkey and Kazakhstan for live challenges. vice earmarked nearly $32 million to cials hope will become the boom for Director Mike Mierzwa said. “Ev- cattle exports from the U.S., US- From the late 1800s until about restore wetlands across the Missis- live cattle shipments. eryone is competing for limited DA’s Animal and Plant Health the 1960s, cattle was common sippi River Basin, in seven states from Port of Galveston officials are space.” Inspection Service (APHIS) ap- cargo at the port. Last June, the Iowa to Louisiana, following pressure from legal battles with environmental hoping to capitalize on cargo loaded The port is considering spend- proved seven temporary export port loaded about 1,500 pregnant groups. PPageage 4 with cattle or wind-powered gen- ing about $30,000 for fencing and inspection facilities, or EIFs, in heifers headed to Russia, marking erators, the first of which is on the cattle pens to help with the grow- 2011 to supplement the work the first time in decades that live- AABORTIONBORTION VVACCINE—ACCINE According to cutting edge of new technology and ing live cattle shipments and keep done at the agency’s approved stock was handled at the docks. researchers at the University of Cali- setting the Port of Galveston up to the ball rolling on the live cattle permanent facilities. Since then, about 24,650 head of fornia, Davis, a long awaited vaccine be the premier U.S. cattle port. shipping boom. With the establishment of EIFs, cattle have shipped from the port. for Epizootic Bovine Abortion is com- Limited space at the port is Earlier this month, Suderman APHIS has been able to keep com- But to improve the port’s bottom pleting the development phase. The creating some logistical complica- Stevedores, a live cattle shipping merce moving, adapting to a level line and make it worthwhile, the disease has elevated cattle abortion tions for all parties involved, but company, organized the first sum- of cattle exports that doubled in numbers need to reach about rates and reduced calf crops in Cali- fornia’s Sierra Nevada mountains attracting and keeping both car- mit on the topic to discuss and 2011 on top of a 50 percent increase 200,000 head per year, according since the 1930s. PPageage 5 gos is in the planning process, evaluate the port’s practices. in 2010. to Mierzwa. according to officials. Responding to the surge in But the growth in live cattle See Live exports on page 14 CCORNORN CCONDITIONS—ONDITIONS The nation’s corn crop was 96 percent planted, 76 percent emerged and rated in 77 percent good-to-excellent condition as of Sunday, May 20, according to USDA’s latest weekly crop progress report. At this same time last year, the crop was not far enough along to give condition ratings. PPageage 6 FFOODOOD SSECURITYECURITY SSUMMIT—UMMIT Friday, May 18 saw the G8 Summit on Food Security at Camp David. The focus was on African agriculture, and a shared commitment to the “New Al- liance for Food Security and Nutri- tion” and the “Grow Africa Partner- ship.” PPageage 1155 IINDEXNDEX Beef Bits ....................................P-3 Markets ....................................P-11 Classifieds................................P-12 Sale Calendar ..........................P-14 Suderman Stevedores in Galveston, Texas, load cattle to MV Ocean Dover in May 2012. Controversial analysis of BLM range report rejected Placements down An environmental group which Livestock’s Heavy Hooves Impair 15 percent in recent bills itself as a champion for gov- One-Third of BLM Rangelands, ernment agency environmental PEER asserted that BLM’s Range- whistleblowers has released a land Inventory, Monitoring, and USDA report controversial analysis claiming Evaluation Report for FY 2011 This month’s USDA cattle on feed report defied projections for a that recent Bureau of Land Man- showed not only that cattle were bullish result. Pre-report estimates placed the cattle on feed on agement (BLM) data on rangeland the leading cause of BLM land May 1 at 100.5 percent of last year’s numbers, placements at 88.5 health reveals that 33 million failing to meet land health stan- percent, and marketings at 98.5 percent. Actual reported numbers acres of public lands are failing dards, but that cattle were respon- for cattle on feed and placements were below estimates, and mar- rangeland health standards due sible for unacceptable environmen- ketings exceeded expectations. to livestock grazing. tal conditions on 33 million acres, Cattle on feed in lots with 1,000 or more head capacity stood at “Livestock’s huge toll inflicted on a staggering 79 percent of all BLM 11.11 million on May 1, down 1 percent from last year’s 11.18 mil- our public lands is a hidden sub- lands analyzed that failed to meet lion. According to the North American Risk Management Services sidy which industry is never asked the standards. PEER blamed the (NARMS), however, this year’s cattle on feed numbers are above to repay,” stated Public Employees situation on too-cozy relations be- the five-year average (1.3 percent) and well above 2010’s May 1 for Environmental Responsibility tween the livestock industry and numbers (about 6 percent). CME Group points out that this is the (PEER) Advocacy Director Kirsten BLM, noting that “BLM has his- first monthly inventory in two years that has been smaller than Stade. “The more we learn about torically been dominated by live- the prior year. actual conditions, the longer is the stock interests,” according to the Four states saw year-to-year increases in cattle on feed numbers: ecological casualty list.” PEER press release. California, Iowa, Nebraska and Washington. California saw a 6 LIVE STEERS DRESSED STEERS CME FEEDER $121.99 $195.56 $152.40 In the May 14 report, headlined See PEER on page 9 percent gain with 475,000 head of cattle on feed. Iowa gained 2 WEEK ENDING: 5-24-12 percent, going from 640,000 head in 2011 to 650,000 head this year. Nebraska, the only one of the group which could be called a big player, went from 2.37 million head on feed on May 1, 2011, to 2.46 Cold storage report million head this year, a 4 percent increase. Washington saw the biggest percentile increase at 12 percent, but much of this is due to their small starting numbers: 200,000 head in 2011 vs. 224,000 chills futures head this year. The cash cattle trade developed After starting the week on Year-to-year losses in cattle on feed numbers were relatively with moderate activity in the south carry-over enthusiasm from the tame. The biggest percentage loss—17 percent—was seen in Okla- Plains on Wednesday. Texas and prior week’s bullish cattle on feed homa, which saw 355,000 head on feed in 2011 and dipped to Kansas saw roughly 30,000 head report, live cattle futures have 295,000 head this year. sell at $121 live. Analysts antici- done nothing but drop. Near- pate Wednesday saw most of the term futures started the week southern trade, though low volume opening at $120.08 for June and U.S. CATTLE ON FEED suggested possible clean-up sales $122.23 for August. By the end of 1,000+ Capacity Feedlots Number Marketed throughout the rest of the week. the day Monday, both had lost Million The north Plains saw more slug- roughly $1.50. Head 2012 2011 gish live cattle trade with bid- Minor intraday rallies ulti- 2.4 asking divides around $3-$4. mately lost ground to overall Wednesday did also see some live declines throughout the week. By 2.2 cash trade activity, but very light midday Thursday, futures stood 2.0 Time Sensitive Priority Handling with just under 10,000 head selling at $117.75 for June and $119.50 1.8 at $193 dressed to mostly regional for August after a stair-stepped 1.6 packers. By Thursday midday, decline all week. little additional trade had devel- The drop in the futures market 1.0 oped in the north. In both the north has been attributed to a number Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. and the south, cash trade was a of things, among them Greece, the steady $2 below the previous current position of the market, and week’s prices. See Markets on page 11 See COF on page 16 NEWS: 2 MAY 28 2012 WESTERN LIVESTOCK JOURNAL COMMENTS BEEF talk There is room for more cows One advantage of keeping hay production, the 2001 slightly. However, the num- in the inventory. Market Tour de California records is the ability to look report shows 2.5 million ber of milk cows dropped prices do and also have in wo week’s ago, the West- back in time. Time changes acres while the 2011 report from 48,000 to 20,000. This the past. everything, but that every- noted 2.6 million acres. Not means that milk cows are The term “cattle cycle” was ern Livestock Journal’s thing may be big for some a large difference.
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