The National Livestock Weekly October 27, 2003 • Vol. 83, No.2 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication Checkoff on last leg — Second appeal request constitutional. This upheld a South denied; stay requested. Dakota judge’s findings, last year, that the program violated pro- — Supreme Court ducers’ First Amendment rights filing imminent. and was not protected under “government speech” provi- By Steven D. Vetter sions. WLJ Editor According to legal an- Photo by Chad Harder, courtesy Undaunted Stewardship Like a baseball team one strike away from los- alysts, if the earlier ing the World Series, the beef checkoff is fighting Eighth Circuit deci- for its future. The Eighth Circuit Court of Ap- sion was a split vote, peals, on October 16, decided against hearing a second appeal on the program’s constitu- tionality, leaving one last avenue of recourse for the program’s supporters. On October 17, the Department of Justice (DOJ), on behalf of USDA, the Cattlemen’s Beef Board (CBB), and Nebraska Cattlemen Inc. (NC), filed a request for a stay in the case brought forward by the Livestock Marketing Association (LMA). If a stay is granted, the program will remain in full effect while defendants attempt to get the case heard by the Supreme Court. The stay request was made to the Eighth Circuit, and a decision was not made as of presstime last Thursday. If the Eighth Circuit does not approve the stay request, DOJ is expected to file a similar request with the Supreme Court within seven days of the decision. Sources on both sides of the issue indicated the Supreme Court is the final route of recourse for the defendants. the request for a full-circuit appeal probably would The DOJ has until January 14, 2004, to formal- have been accepted. However, the 3-0 vote indicated ly file their request for an appeals hearing with the little contention surrounding the issue and an en Stewardship program Supreme Court. If the court decides against hear- banque appeal would have been “pointless.” An en ing arguments, the checkoff will disband immedi- banque appeal is when the full court overseeing a rewards ranchers for ately, and money refunded, presumably, at a later lawsuit is asked to hear the case. date. A decision accepting the request means a Most sources said there wasn’t much doubt four environmentally hearing will be scheduled and a final decision an- of the remaining nine circuit judges would rule like nounced within the next two years. the appellate panel, making the en banque process sensitive practices. The October 16 decision followed a unanimous rul- “unnecessary.” ing earlier this summer, by an Eighth Circuit three- See page 10 for details judge panel, declaring the checkoff program un- See Checkoff on page 8 Feds softer after extraordinary week New ally Fed cattle appeared to top out two weeks ago buy much volume at those prices. Slaughter lev- trade ranged between $95-102 live, and $155- with live feds reaching a high of $120 live, $180 els dropped to low 600,000 as packers attempt 162 dressed. Only 95,000 head traded hands. in E. coli dressed. Last week the market was softer with to keep a positive margin. Two weeks ago pack- There were reports some feeders earned up to most live cattle trading at $95-96 live, and lim- ers were earning $124 per head. However, last $450 per head when the market was at $108- ited dressed trade happening at mostly $159. The week margins were down to $24. 116 live, $175-180 dressed. Those appear to be battle change in the futures market daily trading lim- Under a bit of uncertainty, fed trade resumed the largest profits ever posted on cattle feeding. By Sarah L. Roen it allowed feeders to lift hedges and get out of last Wednesday with several thousand head The latest Cattle-on-Feed report shows cattle WLJ Associate Editor the futures market, which expanded weekly trading in Texas at $95, a full $10-12 lower than on feed down three percent from a year ago, Editor’s note: This is the sec- show lists. the week earlier. However, the futures markets marketings up 10 percent — with one extra ond story in a three-part series The boxed beef market suffered a $10 decline found strength on Thursday and feeders were slaughter day — and placements up 13 percent, covering research on new pre- from the previous week’s $2 top as retailers and passing on renewed $96 packer bids. By the end with the 800-pound placements up 22 percent harvest E. coli prevention tech- institutional meat buyers became reluctant to of Thursday, $96 was the market, although live over a year ago. nologies. Boxed beef values were off sharply with light Beef demand is strong, Choice closing Thursday at $190.14, and Select nonetheless, beef safety re- at $168.09, on very light trading volume. Loins mains on the top of consumers’ and middle meats were trading well, while pack- minds. Because the beef in- C-o-F beats predictions, ers were aggressively moving chucks and rounds. dustry desires to keep demand Boneless beef markets were down slightly, strong, a good deal of funding with 90 percent lean at $128.69, and 50 percent and research has been invest- but still called ‘neutral’ trim at $99.17. Cow beef carcasses were at $81.50 ed in looking at pre-harvest gest impact on the fed cattle market through per cwt and the cow beef cutout was at $104.50, pathogen interventions. The ef- By Steven D. Vetter the rest of the year. However, questions were supporting a strong slaughter cow market. fort is particularly focused on E. WLJ Editor raised concerning the larger-than-expected Slaughter, for the week ending October 17, was coli O157:H7 interventions. Market analysts called USDA’s October 1 number of heavy feeder cattle. at 620,000 head and for last week, through Colorado State University Cattle-on-Feed (CoF) report mostly neutral de- According to USDA, September feedlot Thursday, was running at 22,000 head stronger (CSU), in conjunction with the spite both September placements and mar- placements totaled 2.47 million, 13 percent than the previous week’s pace. Slaughter volume Cattlemen’s Beef Board and ketings being higher than pre-report expec- above 2002 and 16 percent above 2001. Pre- is expected to follow a normal seasonal slow checkoff dollars, evaluated tations. The re- report estimates down. This is generally the time of year when three different pre-harvest E. port was re- USDA Cattle on Feed ranged between carcass weights find their seasonal peak. It is as- See E. coli on page 9 leased Friday, ——- Number (in 1,000 head) ——- 2003 as % of 105-115 percent sumed that will remain the case and slaughter October 17. 2001 2002 2003 2001 2002 of last year, with weights will decline as winter sets in. Short sup- On feed Sept. 1 10,855 10,129 9,834 91 97 an average guess The 120-day supply of fed cattle suggests there plies of market Sept. placements 2,141 2,188 2,474 116 113 of 110 percent. is nothing to fear, except consumer demand, ready cattle Sept. marketings 1,825 1,848 2,032 111 110 Marketings of which is at an all time high. The 120-day sup- are expected to Sept. disappearances 46 53 63 137 119 fed cattle during On feed Oct. 1 11,125 10,416 10,213 92 98 ply is estimated to be 71 percent below last Oc- have the big- September to- tober, but is expected to be at 96 percent of a year ago, by the February report. See C-o-F on page 7 See Markets on page 11 INSIDE WLJ BUYOUT PLAN — Two mem- LIGHT FEED — Despite record ID WATER BOUT — The Gov- PORK CHECKOFF — The pork INDEX (priority handling) bers of the U.S. House of Rep- large yields being expected, corn ernor of Idaho is trying to avert an checkoff was ruled unconstitu- Beef Bits . .P-3 (priority handling) resentatives have proposed bills test weights have been 10-15 all out water war, similar to the tional by an appellate panel in Markets . .P-12 that would pay livestock graziers pounds lighter than normal. Nu- one going on in Oregon’s Kla- the Sixth Circuit Court of Appeals. Sale Reports . .P-14 who waive their permits to the tritionists said corn can be used math Basin. At the heart of the That ruling is expected to play a Sale Calendar . .P-19 Department of Interior. Ranching to feed livestock during the win- Idaho dispute is a couple of role in whether or not the proponents, however, have said ter, however, producers need to species of fish. Page 4. Supreme Court will agree to hear the proposals look more like ef- make sure they feed it based on arguments concerning the con- forts to shutdown grazing, rather overall weight and not volume. stitutionality of the beef checkoff. than limiting it. Page 3 Page 5. Page 8. NEWS NEWS LIVE STEERS DRESSED STEERS CME FEEDER $98.54 $162.85 $104.47 2 OCTOBER 27, 2003 WESTERN LIVESTOCK JOURNAL attle Comments Cattle Ciz I’ve got a lot to learn Doesn’t look good BBiz t seems the beef checkoff By Vern Pierce wanting to be in business, are ready, willing, and able may require you to travel is nearly down for the in a farm or ranch operation, to pay whatever is needed to more and even miss the an- Icount, after last week’s I was a speaker on a pro- are many.