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First global feed LCA guidelines released

First global feed LCA guidelines released

THE International Feed Industry Federation (IFIF), American Feed Industry Assn. (AFIA) and European Compound Feed Manufacturers' Federation announced April 23 the official release of the "Global Feed Life Cycle Assessment" (LCA) guidelines developed by the U.N. Food & Agriculture Organization (FAO)-led Livestock Environmental Assessment & Performance Partnership (LEAP).

The three groups are founding members of LEAP, which aims to improve how the environmental impacts of the livestock industry are measured and assessed.

These groundbreaking global LCA guidelines are an essential step to help reduce the impact of livestock products on the environment, the organizations said.

"The guidelines provide practical and science-based recommendations to assess the environmental performance of feed supply chains. They carry an international scientific consensus based on the input of 20 international experts in the drafting process and a thorough international public review which took place ahead of this official release," said University California-Davis professor and former LEAP chairman Dr. Frank Mitloehner.

"These guidelines represent a significant milestone for the global feed industry," IFIF chairman Mario Cutait said. "Sustainability is one of the key priorities for IFIF, and these global guidelines will enable consistent and credible environmental assessments with a view to reduce the environmental footprint of livestock products."

AFIA president and chief executive officer Joel G. Newman explained that "LEAP is an international and a multi-stakeholder process," which means the guidelines "reflect a common vision among partners, including FAO, national governments, private-sector organizations as well as (non-governmental organizations). This adds value to these globally harmonized metrics and will help meet our customers' expectations."

The guidelines can be accessed on the LEAP website at www.fao.org/partnerships/leap/en.

Volume:87 Issue:16

Diversity key to grassland stability

Biological diversity brings beauty and variety to our lives and to the world around us. It also could be the key to keeping ecosystems strong, according to a new University of Minnesota study published April 17 in the journal Science.

The study, led by Yann Hautier, a Marie Curie fellow associated with the College of Biological Sciences at the University of Minnesota and with the University of Oxford, U.K., looked at 28 years' worth of data on plant growth, number of species, ecosystem stability and exposure to changes in nitrogen, carbon dioxide, fire, grazing and water collected from experimental grassland plots at Cedar Creek Ecosystem Science Reserve near East Bethel, Minn., as part of other studies.

Hautier's study found that all of the human-induced changes affected the productivity of the grassland plots, but only those that reduced biodiversity reduced ecosystem stability.

"Basically, we found that any driver of environmental change that will cause a loss of plant diversity will, in turn, reduce the stable production of plant biomass through time," Hautier said. "Biodiversity is somehow a special case, because it's not only a cause of changes in ecosystems but also a response to other changes."

The study is unusual because it looks at several factors that affect ecosystem stability at the same time over a long period in a setting that kept other potential variables constant. It is important because understanding the cause-and-effect cascade of changes to ecosystems is key to anticipating impacts of human actions and minimizing damage to natural systems that undergird the planet's ability to support human life.

"The main message is that if we want to continue to benefit from the services that our ecosystems are providing, we should be very careful about preserving biodiversity," Hautier said.

Study co-author Forest Isbell, who was recently appointed associate director of Cedar Creek, underscored the importance of the research site in making the study possible. "Few, if any, natural ecosystems worldwide have been more thoroughly investigated than those at Cedar Creek Ecosystem Science Reserve," Isbell said. "Ecologists from around the world, such as Yann Hautier, are perpetually drawn to Cedar Creek and inspired to make new discoveries that transform our understanding of nature."

Based on the results, Hautier is now expanding his research to explore whether the decline in diversity affects natural grasslands' ability to provide multiple ecological benefits simultaneously. That work will take place through the Nutrient Network, an international collaboration coordinated by CBS faculty and study co-authors Eric Seabloom and Elizabeth Borer that makes it possible to conduct research on a variety of grassland ecosystems around the world at the same time.

"Because of Cedar Creek and the Nutrient Network, the University of Minnesota is uniquely positioned to contribute to understanding long-term, multi-continent problems," Borer said. "By providing new insights into the functioning and future of global environments, we hope such studies will help us keep ecosystems healthy in a fast-changing world."

Ag to help cut GHG emissions

In a speech Thursday at Michigan State University, Agriculture Secretary Tom Vilsack laid out a comprehensive approach to partner with agricultural producers to address the threat of climate change.

Building on the creation of USDA's Climate Hubs last year, the new initiatives will utilize voluntary, incentive-based conservation, forestry, and energy programs to reduce greenhouse gas emissions, increase carbon sequestration and expand renewable energy production in the agricultural and forestry sectors.

The Secretary was joined at Michigan State by Brian Deese, senior advisor to the president, as well as agricultural producers and other private partners. Deese noted that last year, President Obama made a pledge to reduce U.S. greenhouse gas emissions in the range of 26-28% below 2005 levels by 2025. Deese said that today's announcement will help the American agriculture and forest sectors contribute to that goal.

Vilsack said, “Through incentive-based initiatives, we can partner with producers to significantly reduce carbon emissions while improving yields, increasing farm operation's energy efficiency, and helping farmers and ranchers earn revenue from clean energy production."

"This is an innovative and creative effort to look across all of USDA's programs and put forward voluntary and incentive-based programs that will increase the bottom lines of ranchers and farmers while reducing net greenhouse gas emissions," said Deese. "Taken together, these partnerships will reduce emissions by 120 million metric tons or two percent of our economy-wide emissions in 2025 – exactly the collaborative, bold action this moment demands of us."

The framework announced consists of 10 building blocks that span a range of technologies and practices to reduce greenhouse gas emissions, increase carbon storage and generate clean renewable energy. Through this initiative, USDA will use authorities provided in the 2014 Farm Bill to offer incentives and technical assistance to farmers, ranchers, and forest land owners. USDA intends to pursue partnerships and leverage resources to conserve and enhance greenhouse gas sinks, reduce emissions, increase renewable energy and build resilience in agricultural and forest systems.

USDA building blocks for climate action:

Soil health: Improve soil resilience and increase productivity by promoting conservation tillage and no-till systems, planting cover crops, planting perennial forages, managing organic inputs and compost application, and alleviating compaction. For example, the effort aims to increase the use of no-till systems to cover more than 100 million acres by 2025.

Nitrogen stewardship: Focus on the right timing, type, placement and quantity of nutrients to reduce nitrous oxide emissions and provide cost savings through efficient application.

Livestock partnerships: Encourage broader deployment of anaerobic digesters, lagoon covers, composting, and solids separators to reduce methane emissions from cattle, dairy, and swine operations, including the installation of 500 new digesters over the next 10 years.

Conservation of sensitive lands: Use the Conservation Reserve Program (CRP) and the Agricultural Conservation Easement Program (ACEP) to reduce GHG emissions through riparian buffers, tree planting, and the conservation of wetlands and organic soils. For example, the effort aims to enroll 400,000 acres of lands with high greenhouse gas benefits into the Conservation Reserve Program.

Grazing and pasture lands: Support rotational grazing management on an additional 4 million acres, avoiding soil carbon loss through improved management of forage, soils and grazing livestock.

Private forest growth and retention: Through the Forest Legacy Program and the Community Forest and Open Space Conservation Program, protect almost 1 million additional acres of working landscapes. Employ the Forest Stewardship Program to cover an average of 2.1 million acres annually (new or revised plans), in addition to the 26 million acres covered by active plans.

Stewardship of federal forests: Reforest areas damaged by wildfire, insects, or disease, and restore forests to increase their resilience to those disturbances. This includes plans to reforest an additional 5,000 acres each year.

Promotion of wood products: Increase the use of wood as a building material, to store additional carbon in buildings while offsetting the use of energy from fossil fuel.

Urban forests: Encourage tree planting in urban areas to reduce energy costs, storm water runoff, and urban heat island effects while increasing carbon sequestration, curb appeal, and property values. The effort aims to plant an additional 9,000 trees in urban areas on average each year through 2025.

Energy generation and efficiency: Promote renewable energy technologies and improve energy efficiency. Through the Energy Efficiency and Conservation Loan Program, work with utilities to improve the efficiency of equipment and appliances. Using the Rural Energy for America Program, develop additional renewable energy opportunities. Support the National On-Farm Energy Initiative to improve farm energy efficiency through cost-sharing and energy audits.

ADM cleared to use drones

ADM Crop Risk Services (ADM CRS) announced it has received regulatory approval from the Federal Aviation Administration to operate unmanned aerial vehicles (UAVs) to expedite and improve claims processing, an industry-first addition to its cutting-edge suite of claims technologies.

“For years, ADM CRS has been leading the industry in developing new technologies to improve customer service and dramatically reduce the time to complete and pay out claims,” said Greg Mills, president, ADM CRS. “Now, we are setting our sights even higher, with UAV plans and technology that are significantly ahead of the rest of the industry.”

The company’s innovative UAV technology will not only include the vehicles, but the software to integrate them smoothly into the company’s Aeros suite of claims software, allowing the location and calculation of crop damage. From there, the information can be quickly transferred into an accurate claim for a faster payment.

“The FAA exemption means we are on track to have this technology in the air for our customers next year,” Mills said. “We are tremendously excited to start showing this state-of-the-art system to our customers. We’ll be offering something no one else in the industry can offer, and the farmers we serve will be the ones who benefit.”

ADM CRS will develop and test the technology through the 2015 crop year, with a planned launch of the system for customers in 2016. The system will be rolled out to customers in the Midwest first, followed by other regions.

Avian influenza not food safety issue

Avian influenza not food safety issue

Avian influenza does not impact the foods that consumers eat, according to an Iowa State University food safety expert.

“Consumers should feel safe to eat properly cooked and prepared meat and eggs from poultry,” said Angela Shaw, assistant professor in food science and human nutrition and extension specialist in food safety.

 “Avian influenza is not a foodborne pathogen,” said Shaw. “It cannot be contracted from eating properly cooked poultry meat and eggs.”

The disease is caused by an influenza virus that can infect poultry, such as chickens, turkeys, domestic ducks and geese, and is carried by migratory birds such as ducks, geese and shorebirds. Humans can be infected with the virus, but most cases involve very close direct contact with sick birds.

Shaw said the Food & Drug Administration maintains that properly cooked poultry and eggs pose no threat. She advised that consumers always should follow the FDA’s procedures for safe handling and cooking of poultry products:

• Wash hands with warm water and soap for at least 20 seconds before and after handling raw poultry and eggs.

• Clean cutting boards and other utensils with soap and hot water to keep raw poultry or eggs from contaminating other foods.

• Cutting boards may be sanitized by using a solution of 1 tablespoon chlorine bleach and 1 gallon of water.

• Cook poultry to an internal temperature of at least 170°F. Consumers can cook poultry to a higher temperature for personal preference.

• Cook eggs until the yolks and whites are firm. Casseroles and other dishes containing eggs should be cooked to 170°F.

• Use pasteurized eggs or egg products for recipes that are served using raw or undercooked eggs. Some examples of these kinds of dishes are Caesar salad dressing and homemade ice cream. Commercial mayonnaise, dressing and sauces contain pasteurized eggs that are safe to eat. Pasteurized eggs and egg products are available from a growing number of retailers and are clearly labeled.

The Egg Industry Center at Iowa State University has additional information for consumers at:  http://www.ans.iastate.edu/EIC/Templates/AvianInfluenzaConsumers.dwt

The ISU College of Veterinary Medicine has avian influenza information, including materials to protect backyard flocks, at:  http://vetmed.iastate.edu/aiv-background-and-resources

Ingredient market prices, 4/27/15

Ingredient market prices, 4/27/15

The following prices, which include delivery, were obtained April 22 from feed and grain vendors in the U.S. and Canada. The prices represent current trading values but are not guaranteed. Second column shows the amount of change since the previous week. Prices of certain products can vary depending on the processing method used. N-Nominal. N/A-Price not available.

OILSEED PRODUCTS

 

 

(dollars per ton)

 

 

Soybean meal

 

 

(high-protein)

 

 

Atlanta

410.00

-

Boston

455.00

32.00

Buffalo

368.00

2.00

Chicago

331.00

-7.00

Delmarva

N/A

-

Fayetteville NC

420.00

-

Ft. Worth

360.00

-

Kansas City

320.00

-

Los Angeles

368.00

2.00

Memphis

N/A

-

Minneapolis

323.50

9.50

Okeechobee

440.00

-

Portland

372.90

3.60

San Francisco

368.00

2.00

Twin Falls

385.00

-7.00

Soybean meal

 

 

(low-protein)

 

 

Atlanta

400.00

-

Boston

360.00

-58.00

Buffalo

364.00

2.00

Chicago

319.00

-31.00

Delmarva

N/A

-

Fayetteville NC

410.00

-

Ft. Worth

N/A

-

Kansas City

320.00

-

Los Angeles

347.00

-3.00

Memphis

N/A

-

Minneapolis

N/A

-

Okeechobee

430.00

-

Portland

N/A

-

San Francisco

347.00

-3.00

Soybean hulls

 

 

Atlanta

N/A

-

Buffalo*

205.00

-

Chicago

135.00

-8.00

Fayetteville, NC

N/A

-

Ft. Worth*

185.00

-

Los Angeles

180.00

5.00

Minneapolis

100.00

-

Okeechobee

N/A

-

San Francisco

180.00

5.00

Twin Falls

165.00

-10.00

* unpelleted

 

 

Whole cottonseed

 

 

Atlanta

283.00

-

Buffalo

317.00

-3.00

Chicago

303.00

-2.00

Delmarva

N/A

-

Fayetteville NC

283.00

-

Ft. Worth

295.00

-

Los Angeles

400.00

4.00

Lubbock

280.00

-

Memphis

270.00

2.00

Okeechobee

320.00

-

Portland

380.00

-

San Francisco

400.00

4.00

Twin Falls

372.00

-3.00

Cottonseed meal

 

 

Atlanta

308.00

-

Chicago

318.00

-25.00

Delmarva

308.00

-

Fayetteville NC

308.00

-

Ft. Worth

320.00

-

Kansas City

320.00

-15.00

Los Angeles

N/A

-

Lubbock

285.00

-

Memphis

275.00

-10.00

Okeechobee

342.00

-

San Francisco

265.00

-2.00

Cottonseed hulls

 

 

Atlanta

223.00

-

Chicago

215.00

-

Fayetteville NC

223.00

-

Ft. Worth

160.00

-

Okeechobee

260.00

-

Los Angeles

N/A

-

Lubbock

120.00

-

San Francisco

N/A

-

Canola meal

 

 

Buffalo

269.00

2.00

Minneapolis

263.10

5.20

Los Angeles

277.00

-4.00

Montreal

268.00

3.00

Portland

259.00

2.20

San Francisco

277.00

-4.00

Twin Falls

278.00

8.00

Vancouver

220.00

-

Sunflower seed meal

 

 

Fargo

210.00

-

Minneapolis

185.00

-

Linseed  meal

 

 

Atlanta

N/A

-

Chicago

265.00

5.00

Fargo

240.00

-

Fayetteville NC

N/A

-

Ft. Worth

276.00

-

Kansas City

265.00

-

Minneapolis

240.00

-

Safflower meal

 

 

Los Angeles

N/A

-

San Francisco

175.00

-

ANIMAL BYPRODUCTS

 

 

(dollars per ton)

 

 

Meat and bone meal

 

 

(ruminant)

 

 

Buffalo

N/A

-

Chicago

405.00

-5.00

Delmarva

465.00

-10.00

Fayetteville NC

440.00

-

Ft. Worth

400.00

-

Kansas City

380.00

-2.00

Los Angeles

315.00

-

Memphis

430.00

-

Minneapolis

390.00

-

Portland

315.00

-

San Francisco

315.00

-

Meat and bone meal

 

 

(porcine)

 

 

Fayetteville NC

450.00

-10.00

Los Angeles

357.60

-

Memphis

440.00

-10.00

Minneapolis

400.00

-

Flash-dried blood meal

 

 

(ruminant)

 

 

Fayetteville NC

1000.00

-

Los Angeles

1000.00

-

Memphis

950.00

-

Minneapolis

875.00

-25.00

Flash-dried blood meal

 

 

(porcine)

 

 

Fayetteville NC

1025.00

-

Memphis

1000.00

-

Minneapolis

900.00

-50.00

Poultry byproduct meal

 

 

(feed grade)

 

 

Atlanta

N/A

-

Fayetteville NC

465.00

-

Ft. Worth

345.00

-

Kansas City

N/A

-

Los Angeles

435.00

-

Memphis

465.00

-

Poultry byproduct meal

 

 

(pet food grade)

 

 

Memphis

550.00

-

Fayetteville NC

550.00

-

Hydrolized feather meal

 

 

Atlanta

510.00

-

Delmarva

510.00

-60.00

Fayetteville NC

535.00

-

Ft. Worth

530.00

-90.00

Kansas City

640.00

-

Los Angeles

N/A

-

Memphis

510.00

-

Minneapolis

600.00

-

Menhaden fish meal

 

 

Atlanta

N/A

-

Buffalo

N/A

-

Chicago

1900.00

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Memphis

1700.00

-

Minneapolis

N/A

-

Twin Falls

N/A

-

Blended tuna meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

Anchovy  meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

ANIMAL FAT, GREASE

 

 

(cents per pound)

 

 

Prime Tallow

 

 

Chicago

26.50

-

Ft. Worth

N/A

-

Los Angeles

23.75

-0.88

San Francisco

22.50

-4.25

Yellow grease

 

 

Buffalo

N/A

-

Chicago

25.25

-

Delmarva

N/A

-

Fayetteville NC

27.00

-

Ft. Worth

24.50

-1.00

Kansas City

34.00

-

Los Angeles

22.75

-0.88

Memphis

27.00

-

Minneapolis

22.00

-

San Francisco

21.50

-1.25

Choice white grease

 

 

Chicago

26.50

-

Minneapolis

23.50

-0.50

Bleachable fancy tallow

 

 

Buffalo

N/A

-

Chicago

28.50

-

Ft. Worth

27.50

0.50

Los Angeles

N/A

-

Minneapolis

28.50

-

San Francisco

N/A

-

Vegetable-animal blend

 

 

Ft. Worth

25.00

-1.00

Los Angeles

22.75

-1.00

Minneapolis

23.75

-

San Francisco

22.75

-1.00

Poultry grease

 

 

(feed grade)

 

 

Delmarva

23.00

-1.00

Fayetteville NC

26.00

-

Memphis

26.00

-

Poultry grease

 

 

(pet food grade)

 

 

Memphis

32.00

-

Fayetteville NC

32.00

-

GLUTEN, HOMINY

 

 

(dollars per ton)

 

 

Corn gluten meal

 

 

Buffalo

648.00

-15.00

Chicago

593.00

-12.00

Kansas City

650.00

-

Los Angeles

N/A

-

Corn gluten feed

 

 

Buffalo

143.00

-5.00

Chicago

98.00

-17.00

Fayetteville NC

123.00

-

Kansas City

160.00

-

Okeechobee

143.00

-

Twin Falls

182.00

-

Wahpeton

N/A

-

Hominy feed

 

 

Atlanta

175.00

-

Boston

152.00

7.00

Buffalo

161.00

-1.00

Chicago

106.00

3.00

Fayetteville NC

N/A

-

Kansas City

105.00

-

Los Angeles

176.00

1.00

Okeechobee

N/A

-

San Francisco

176.00

1.00

Twin Falls

187.00

2.00

BREWERS, DISTILLERS

 

 

(dollars per ton)

 

 

Brewers dried grains

 

 

Chicago

N/A

-

Kansas City

N/A

-

Malt Sprouts

 

 

Chicago

155.00

-

Milwaukee

150.00

-

Winona, Minn

150.00

-

Distillers dried grains

 

 

Atlanta

235.00

-

Boston

234.00

-8.00

Buffalo

200.00

-

Chicago

195.00

-

Fayetteville NC

235.00

-

Kansas City

125.00

-

Los Angeles

244.00

-5.00

Minneapolis

175.00

-

Okeechobee

245.00

-

Portland

239.00

-

San Francisco

244.00

-5.00

Twin Falls

252.00

1.00

Brewers yeast

 

 

(dollars per pound, sacked)

 

 

Chicago

0.75

-

Milwaukee

0.75

-

Minneapolis

0.75

-

ALFALFA

 

 

(dollars per ton)

 

 

Dehydrated pellets

 

 

(17% protein)

 

 

Alfalfa Center

275.00

-

Buffalo

375.00

-

Chicago

355.00

-

Kansas City

290.00

-

Los Angeles

N/A

-

Minneapolis

265.00

-

Toledo

385.00

-

San Francisco

N/A

-

Suncured pellets

 

 

(15% protein)

 

 

Atlanta

N/A

-

Ft. Worth

220.00

-

Kansas City

225.00

-

Los Angeles

N/A

-

Portland

287.00

-

San Francisco

N/A

-

WHEAT MILLFEEDS

 

 

Shorts

 

 

Chicago

150.00

-

Ft. Worth

N/A

-

Los Angeles

167.00

-2.00

Millrun

 

 

Los Angeles

158.00

-2.00

Portland

180.00

-

San Francisco

N/A

-

Twin Falls

155.00

-

Bran

 

 

Buffalo

135.00

-15.00

Chicago

165.00

-

Los Angeles

162.00

-2.00

Minneapolis

N/A

-

Middlings

 

 

Buffalo

105.00

-15.00

Chicago

120.00

-

Fayetteville NC

N/A

-

Ft. Worth

100.00

-30.00

Kansas City

80.00

-10.00

Los Angeles

165.00

-2.00

Memphis

122.00

-13.00

Minneapolis

85.00

-

Okeechobee

N/A

-

DAIRY BYPRODUCTS

 

 

(dollars per hundredweight)

 

 

Dried skim milk

 

 

Ft. Worth

98.75

-2.00

Minneapolis

98.75

-2.00

Dried buttermilk

 

 

Ft. Worth

91.00

-1.50

Minneapolis

91.00

-1.50

Whole whey

 

 

Chicago

42.50

-0.75

Ft. Worth

42.00

-0.50

Kansas City

54.00

-

Minneapolis

42.00

-0.50

Whey protein concentrate

 

 

Ft. Worth

93.00

-1.50

Milwaukee

93.00

-1.50

Lactose

 

 

Ft. Worth

23.75

-

Minneapolis

23.75

-

OATS, RICE PRODUCTS

 

 

(dollars per ton)

 

 

Rolled oats

 

 

Chicago

514.00

-

Kansas City

430.00

-

Minneapolis

490.00

-

Crimped oats

 

 

Chicago

430.00

-

Kansas City

335.00

-

Minneapolis

431.00

-

Pulverized oats

 

 

Chicago

150.00

-

Minneapolis

138.00

-

Reground oat feed

 

 

Chicago

75.00

-

Kansas City

65.00

-

Minneapolis

72.00

-

Oats

 

 

(dollars per bushel)

 

 

Buffalo

4.10

-0.05

Minneapolis

3.14

-

Portland*

257.50

-5.00

(*per ton)

 

 

Rice bran

 

 

Atlanta

N/A

-

Ft. Worth

120.00

-10.00

Freeport

N/A

-

Kansas City

135.00

-

Memphis

N/A

-

San Francisco

174.00

-2.00

Stuttgart, Ark.

N/A

-

Rice millfeeds

 

 

Atlanta

N/A

-

Ft. Worth

80.00

-

Freeport

N/A

-

Kansas City

100.00

-

Memphis

N/A

-

Stuttgart, Ark.

N/A

-

Rice hulls

 

 

Ft. Worth

55.00

-

Kansas City

70.00

-

DRIED PULP

 

 

(dollars per ton)

 

 

Citrus pulp pellets

 

 

Atlanta

193.00

-

Fayetteville NC

203.00

-

Okeechobee

173.00

-

Los Angeles*

N/A

-

*(sold wet)

 

 

Beet pulp pellets

 

 

Atlanta

N/A

-

Boise

N/A

-

Chicago

220.00

-

Fayetteville NC

N/A

-

Kansas City

475.00

-

Minneapolis

160.00

-

Portland

210.00

-20.00

Saginaw

175.00

-

Beet pulp shreds

 

 

Mpls (sacked)

340.00

-

Los Angeles*

156.00

1.00

San Francisco

N/A

-

Twin Falls

N/A

-

*bulk, wet

 

 

GRAINS

 

 

Barley feed

 

 

Kansas City (bu.)

5.20

-

Los Angeles (cwt)

9.35

0.52

Portland (ton)

195.00

-

San Francisco (cwt)

9.35

0.52

Feed wheat

 

 

Atlanta (bu.)

N/A

-

Fayetteville NC (bu.)

N/A

-

Kansas City (bu)

4.85

0.05

Los Angeles (cwt)

N/A

-

San Francisco (cwt)

N/A

-

Corn

 

 

(dollars per bushel)

 

 

Atlanta

6.26

-

Boston

4.11

-0.01

Buffalo (per ton)

155.00

-3.00

Chicago

3.87

-0.05

Delmarva

4.10

-0.03

Fayetteville NC

5.30

-

Ft. Worth

N/A

-

Kansas City

3.76

-

Los Angeles*

9.48

-0.06

San Fran (rail)*

9.48

-0.06

San Fran (truck)*

N/A

-

Memphis

4.03

0.01

Minneapolis

3.58

-

Okeechobee

5.53

-

Portland (per ton)

175.25

-0.13

(*per cwt)

 

 

Milo

 

 

(dollars per bushel)

 

 

Atlanta

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

4.41

-0.05

Los Angeles*

11.21

-

Memphis

4.38

0.03

*(per cwt.)

 

 

Ground grain screenings

 

 

(dollars per ton)

 

 

Ft.  Worth

148.00

4.00

Kansas City

65.00

-

OTHER

 

 

(dollars per ton)

 

 

Almond hulls

 

 

Los Angeles

170.00

-3.00

San Francisco

150.00

-

Bakery feed

 

 

Atlanta

165.00

-

Buffalo

164.00

-

Fayetteville NC

175.00

-

Memphis

160.00

-

Minneapolis

165.00

-5.00

Feed urea

 

 

Buffalo

N/A

-

Ft. Worth

N/A

-

Los Angeles

N/A

-

Minneapolis

N/A

-

Salt

 

 

Kansas City

58.00

-

Los Angeles

50.00

-

Cane molasses

 

 

Ft. Worth

N/A

-

Houston

150.00

-

Kansas City

195.00

-

Los Angeles

N/A

-

Memphis

N/A

-

Minneapolis

195.00

-

New Orleans

150.00

-

San Francisco

N/A

-

 

Volume:87 Issue:16

Livestock & poultry cash market comparisons, 4/27/15

Livestock & poultry cash market comparisons, 4/27/15

Livestock and meat ($)

April 22

April 15

6 months ago

Year ago

Steers, Choice, carcass, 550-700 lb., cwt., Omaha

260.06

258.45

251.00

232.64

Steers, Choice, 1,050-1,200 lb., cwt. Southern Plains

158.00

162.50A

164.00

146.00

Feeder Steers, 600-700 lb., cwt., Oklahoma City

243.25A

243.00A

248.75A

202.00A

Lean Hogs, Carcass, Iowa-Minn. 167-187 lb.(1)

63.75

62.19

99.41

112.73

Feeder Pigs, 40 lb. National Direct Delivered(2)

66.10

65.11

87.92

136.88

SEW Pigs, 10 lb., National direct delivered (per head)

34.19

34.56

69.10

80.70

Choice Beef, cutout, cwt.

260.27

261.02

249.43

233.80

Pork Loin, 185 lb. 51-52% lean, cutout, cwt.(3)

85.86

80.75

110.45

121.77

Hog Corn Ratio

16.53

16.47

28.16

23.52

Steer Corn Ratio

41.47

42.78

50.85

27.70

Poultry and eggs (cents)

 

 

 

 

Chickens, Grade A, Fresh lb. Chicago

102.17a

100.29a

101.69a

108.45a

Hen Turkeys, Grade A, Frozen, lb., Chicago

105.00Aa

104.00Aa

118.50Aa

105.00Aa

Young Tom Turkeys, Grade A. Frozen lb. Chicago

106.50Aa

104.00Aa

118.00Aa

105.00Aa

Eggs, Grade A, Large, doz., Chicago

102.50

102.50

117.50

122.50

N/A: not available

A: average

 

 

 

(1) Replaces live hogs; live hogs are 0.755 of quote.
(2) Replaces Sioux Falls, 50-60 lbs. (2/26/07)
(3) National FOB plant, replaces national daily carlot.
Livestock, meat, poultry and egg prices from USDA.

 

Volume:87 Issue:16

High-flying pork prices alight

High-flying pork prices alight

THE global pork industry has been searching for stability during the first quarter of 2015, with strong supply growth and relatively weak demand driving the market, according to the Rabobank "Q2 Pork Quarterly" report.

Rabobank said pork prices are sharply lower as robust global supply growth — driven by the U.S., Russia and Brazil — has outpaced rather subdued demand, dragging producer profitability into negative territory.

After favorable profit margins in 2014 that resulted from porcine epidemic diarrhea virus (PEDV) losses reducing supplies, the hog inventory has since rebounded, and global pork prices have fallen close to 40% from the historic highs of last summer, the report notes.

"The increasing competition in the global export market will result in continuous price and margin pressure in most countries around the globe," Rabobank animal protein analyst Albert Vernooij said. "Therefore, after the buoyant — at least price-wise — last couple of years, the global pork industry is slowly moving towards the bottom of the cycle."

As the U.S. supply recovers from PEDV-related declines, Rabobank said the question is to what degree the recovery will be affected by the strengthening U.S. dollar and lower prices.

"This will be crucial to the expected export recovery after the disappointing start to 2015," the report notes.

In the European Union, the report suggests that prices will follow seasonal developments but will remain lower than the historical average and below breakeven levels. The report says prospects for the EU remain meager, with higher production and lackluster demand limiting seasonal improvement of pork prices to, at best, the seasonal average.

With the industry slowly improving, prices bottomed out in China during March. The report says the main question is whether the large herd contraction of the last 18 months will return producer margins to profitability and spur increased imports.

In Brazil, prospects remain positive but less buoyant than in the first quarter, driven by domestic consumption pressure and difficult Russian export negotiations, according to the report.

Rabobank said it continues to believe that Brazil's pork exports will increase during 2015; however, after a weak start, the pace of growth might not be sufficient to surpass 10%, as it previously predicted.

 

Avian flu impact

With more cases of highly pathogenic avian influenza (HPAI) emerging last week, there was concern about the impact the disease might have on livestock markets.

Steve Meyer and Len Steiner recently wrote in the "Daily Livestock Report" that, so far, the supply impact on the turkey market has been much more significant than any demand effects.

Turkey demand from Mexico has been the greatest concern since Mexico is the largest market, accounting for 63% of total U.S. turkey exports in 2014.

While U.S. exports to Mexico in January were up 15.9%, they were 2.3% lower in February after Mexico banned imports from some states affected by HPAI. However, Meyer and Steiner said it doesn't appear that Mexico wants to cut off access to the U.S. turkey or chicken supply.

The effect of HPAI on the broiler industry remains the real risk for livestock producers, Meyer and Steiner said.

"So far, and despite all the talk in the press, we think the effect of HPAI on broiler production has been nonexistent," Meyer and Steiner said. "Most cases of HPAI have been in states that account for a very small part of U.S. chicken output."

Negative publicity seems to be the biggest threat to the poultry industry right now, according to industry experts.

 

Beef market

Even though U.S. beef prices have eased from the record levels seen in the second half of 2014, they are expected to remain firm for the next two to three years, according to Rabo Agri Finance vice president for Food & Agribusiness Research & Advisory Don Close.

Close said after years of liquidation due to drought, U.S. beef herd rebuilding started last year, and while cows are being retained for this rebuilding, the prices for lean manufacturing beef should remain high for the next few years.

"The U.S. continues to see solid demand for ground (minced) beef, and our appetite for premium burgers has not yet peaked," he said.

Close said all U.S. prices for cattle are still exceptionally high historically, with little change on the horizon.

The U.S. Department of Agriculture showed an increase in U.S. beef cow numbers of 600,000 head between Jan. 1, 2014, and Jan. 1, 2015, which is evidence that expansion of the local herd started to take place last year.

"Expectations are for U.S. cow numbers to build between 1% and 2% per year for the next four to six years," Close said. "As long as so many cows are being retained for expansion, the prices for 90CL (lean) manufacturing beef should stay quite high for at least the next few years, and while prices will hold firm, they may return to more seasonal patterns."

 

April cold storage

The latest USDA "Cold Storage" report revealed significantly higher inventories for the major proteins versus the same period in 2014 (Figure).

Total red meat supplies in freezers decreased 3% from February but increased 18% from last year's total.

The beef supply decreased 2% from the previous month to 479.78 million lb. but increased 18% from last year.

Frozen pork supplies were 668.56 million lb., a 3% decrease from February but an increase of 16% from the same period last year. Pork belly stocks, at 68.66 million lb., increased 1% from last month but decreased 14% from last year.

Total frozen poultry supplies, at 1.103 billion lb. on March 31, increased 4% from the previous month and 19% from a year ago. Chicken increased to 751.94 million lb., a 3% increase from the previous month and a 27% jump from last year. At 347.638 million lb., turkey in cold storage increased 8% from last month and 3% from March 31, 2014.

High-flying pork prices alight

Market recap

Live cattle futures moved lower last week. April contracts closed $2.45 lower at $155.35/cwt. last Monday but gradually gained throughout the week to close at $159.30/cwt. last Thursday.

Feeder cattle futures were also lower than the previous week. April feeder cattle contracts closed lower last Monday at $211.825/cwt. but saw a boost Thursday to close $1.725 higher at $214.225/cwt.

Choice and Select cattle edged slightly higher last Thursday, settling at $260.27/cwt. and $251.19/cwt., respectively.

Lean hog futures seemed to be on a roller coaster last week. May lean hog futures closed lower last Monday at $70.275/cwt. but then closed higher on Tuesday at $71.60/cwt. They went lower again on Wednesday but, like live cattle and feeder cattle futures, closed higher Thursday at $71.95/cwt.

Hogs delivered to the western Corn Belt last Thursday were reported at $62.73/cwt., only a slight increase from the previous week.

Wholesale pork cutout values finished $3.68 higher last Thursday at $71.16/cwt. Loins finished $3.96 higher at $85.86/cwt. Hams continued to climb higher with a $7.35 increase last Thursday to settle at $59.64/cwt., up from $48.37/cwt. the week before. Bellies closed lower at $63.62/cwt., down from $70.22/cwt. the week prior.

In the poultry markets, the Georgia dock increased slightly to $1.155/lb. last Wednesday, compared to $1.08/lb. last year. Breast meat prices increased to $1.965/lb., while leg quarters decreased to 48.5 cents/lb. Wings were lower last week, closing at $1.755/lb. on Wednesday.

USDA said New York and regional egg prices were steady last week, with an unsettled undertone at times due to the emerging cases of avian influenza. Large eggs were priced at $1.09-1.13/doz. delivered to the Northeast, $1.11-1.14/doz. to the Southeast and $1.00-1.03/doz. to the Midwest. Large eggs delivered to California increased to $1.86/doz. from $1.79/doz. the week before.

The turkey markets were steady to firm last week, with light to fair demand. Prices for hens and toms were reported in the ranges of $1.02-1.08/lb. and $1.02-1.11/lb., respectively.

Volume:87 Issue:16

Dry weather should speed corn planting

Dry weather should speed corn planting

WHILE it is too early to panic, farmers need dry weather to plant corn in much of the Midwest. Forecasts show drier conditions for much of the Midwest beginning this week and lasting into May.

As of the prior week, 9% of the corn was planted, which was ahead of the 6% pace in 2014 but behind the five-year average of 13%. Iowa was at 7%, which matched the five-year average and was ahead of last year's 2%.

In central Iowa, farmers were able to resume planting corn last Thursday after weekend rains of 1-2 in. had sidelined equipment for a few days. Prior to the rain, central Iowa had been fairly dry, so the fields quickly absorbed the moisture, Iowa State University extension field agronomist Mark Johnson said.

"The temperature has been a problem, but we have not been too wet," said Johnson, who estimated that the nine-county area in central Iowa he serves is about 20% planted, with some areas at 25%.

Temperatures have been below normal for much of the Midwest, but Johnson said farmers who are planting do not appear to be concerned about soil temperatures.

The National Weather Service forecasts below-normal rainfall for the western half of the Midwest and for most of the central and northern Plains through May 2. It is also forecasting below-normal temperatures for the Midwest.

The parade of storms in the Midwest has provided ample soil moisture to sustain the corn once it is planted. The latest readings from the U.S. Department of Agriculture put topsoil moisture at 86% adequate to surplus in Iowa, 92% in Illinois and 98% in Indiana.

Concerns about weather are common as planting begins: Fields are either too dry or too wet, or temperatures are too low. With today's big machines, a lot of ground can be planted in a short time once conditions improve. A year ago, Iowa went from having 2% of its corn planted to 15% in a week, and Illinois went from 5% to 32%.

Johnson said planting delays would have to extend well into May before farmers consider switching from corn to soybeans.

On April 27, USDA will issue the season's first planting progress estimates for soybeans. At this time a year ago, 3% of the soybeans were planted, and the five-year average was 4%.

 

Sales report

USDA's latest weekly export report showed that old-crop corn and wheat export sales were better than expected and up considerably from the prior week (Table). Soybean export sales were down for the week for both crop years, USDA said of business for the week ended April 16.

Exports of old-crop corn totaled 34.2 million bu., up 48% from the previous week, led by Japan, Mexico and Colombia. New-crop business of 244,094 bu. was at the low end of trade forecasts, shipped to unknown destinations and Trinidad.

Old-crop wheat sales were 14.6 million bu., up sharply from the previous week, while new-crop sales of nearly 4.7 million matched the trade's view. The current wheat crop year concludes May 31.

Old-crop soybean sales were nearly 3.8 million, down 67% from the prior week but within forecasts. China, Mexico and Japan were the leading buyers. New-crop business of nearly 300,000 bu. was down from a week earlier and short of forecasts, with Japan the sole buyer.

"Export numbers for last week reported Thursday were a mixed bag, with both good news and bad. The results for wheat may be the most positive. The 14.6 million bu. of old-crop business was the best in six weeks and improves the odds that USDA's lowered expectations for the 2014 crop will be met," said Bryce Knorr, Farm Futures senior grain analyst. "Both sales and shipments are running above the rate forecasted by USDA for the rest of the marketing year ending May 31.

"New-crop corn and soybean business is also lower than normal, though harvest is still five months or more away. End users simply expect prices to be lower later this summer," Knorr said.

Knorr's calculations peg old-crop soybean export commitments 3 million bu. below USDA's forecast.

"Some of those sales will be rolled to new crop or cancelled, but it's an indication the government likely is too low with its forecast," he said.

Soybean meal sales of 107,400 metric tons for the 2014-15 crop were down 18% from the previous week but matched forecasts, with Venezuela, Thailand and the Dominican Republic as the top buyers. Net sales of 22,800 mt of 2015-16 supplies were led by El Salvador and Ecuador.

Old-crop sorghum sales of nearly 3.3 million bu. went to China, while 22.8 million in 2015-16 business went to unknown destinations. China cancelled nearly 2 million bu. of new-crop business.

"China continues to buy sorghum from the U.S. as an alternative to corn. However, China did cancel a new-crop shipment. If that's a one-off, it's no problem, but if it's an indication that government policies towards allowing imports of minor feed grains may change, it could be troublesome," Knorr said.

 

Export sales for week ending April 16, million bu.

 

Corn

Soybeans

Wheat

Old-crop sales

34.2

3.8

14.6

New-crop sales

0.2

0.3

4.7

Total sales

34.4

4.0

19.3

Previous week

24.3

19.8

5.9

Trade estimates

21.7

10.1

7.4

USDA forecast

12.9

0.2

1.1

Export shipments

41.0

5.7

20.5

USDA forecast

41.7

6.9

24.4

% of USDA commitments

86

100

99

Avg. for the week, %

80

90

94

% of USDA shipments

56

93

83

Avg. for the week, %

62

81

82

Sources: USDA, Reuters.

 

River conditions

Shipping logistics improved on the Upper Mississippi and Ohio rivers last week as water levels dropped or remained steady. Water remained high on the Lower Mississippi, prompting reduced tow sizes and slower transit times, USDA said.

As of April 21, barge freight rates decreased by 7% and 13% on the Upper Mississippi and Illinois rivers, respectively, while Ohio River rates decreased 9%, USDA said. The decrease was attributed to better navigation conditions and a slight reduction in barge demand as weekly tonnages dropped 3% from the week before.

Barge operators told USDA there is reduced demand for barge services because farmers are busy with fieldwork.

 

Market recap

A strike by Brazil truck drivers gave the soybean market a lift late in the week. It is not clear how long the strike will last or what impact it will have on Brazil's soybean exports, but the news turned attention away from the week's sluggish exports and concerns that new outbreaks of avian flu will hurt soybean meal consumption.

The thinking is that a long strike could shift some buyers of Brazilian soybeans to the U.S., but at this point, that would be a bit premature.

Old-crop soybeans and new-crop November closed last Thursday at about 2.5-week highs.

Argentina is harvesting a big crop, and news reports were that the government raised its soybean crop forecast to 59 million mt from its previous 58 million. USDA currently has that crop at 57 million mt.

Corn futures got a brief early lift last Thursday from better-than-expected exports, but the forecasts for lengthy dry weather in the Midwest brought sellers into the market, and corn closed lower for the day.

As of last Thursday, the market was on track for a lower week. New-crop December also finished lower for the day and was headed for a lower week. Like soybeans, corn was pressured early in the week by worries that bird flu in some commercial U.S. flocks would hurt feed consumption.

The wheat market worked higher last week, helped by USDA reporting no improvement in the overall winter wheat condition last Monday and dialing down ratings for the Kansas crop. Weekly exports added support as they were better than expected for the old crop.

"The trouble with the wheat business is that buying is only from regular customers in Asia and the Americas. We continue to be frozen out of the big markets from North Africa through the Middle East, and that trend may continue into the new crop," Knorr said.

Sales of new-crop wheat to date are the lowest in five years (Figure). "End users around the world still see no urgency to book supplies," he explained.

Dry weather should speed corn planting

Volume:87 Issue:16

Grain & ingredient cash market comparisons, 4/27/15

Grain & ingredient cash market comparisons, 4/27/15

Major feed ingredients

April 22

April 15

6 months ago

Year ago

Corn No. 2, Chicago, bu.

 

 

 

 

Processor bid*

3.79A

3.83A

3.48A

N/A

Terminal bid*

3.65A

3.68A

3.26A

N/A

Milo, Kansas City, cwt.

7.87

7.96

5.94

8.78

Soybeans, Chicago, bu., processor bid

9.60A

9.55A

9.58

N/A

Soybean Meal, 48% Decatur Bid

333.50A

330.00A

381.00A

N/A

Cottonseed Meal, Memphis, ton

275.00

285.00

300.00

400.00

Canola meal, Minneapolis, ton

263.10

257.90

N/A

381.30

Linseed Meal, Solvent, Minneapolis

240.00

240.00

210.00

390.00

Meat and Bone Meal, Chicago, ton

405.00

410.00

395.00

580.00

Fish Meal, Menhaden, Atlanta, ton

N/A

N/A

1,125.00

1,125.00

Corn Gluten Meal, 60%, Chicago, ton

593.00

605.00

560.00

840.00

Distillers Dried Grains, Chicago, ton

195.00

195.00

100.00

240.00

17% Dehy. Alfalfa Pellets, KC, ton

290.00

290.00

300.00

335.00

Millfeeds, Midds, Minneapolis, ton

85.00

85.00

105.00

170.00

Molasses, Cane, Houston, ton

150.00

150.00

150.00

147.50

Dried Citrus Pulp, Atlanta, ton

193.00

193.00

240.00

225.00

Whey, Whole, Chicago, cwt.

42.50

43.25

61.00

65.00

Rolled Oats, Minneapolis, ton

490.00

490.00

517.00

592.00

Barley, Los Angeles , cwt.

9.35

8.83

9.85

13.25

Feeding Wheat, Kansas City, bu.

4.85

4.80

4.90

6.73

* Chicago corn and soybean prices for latest and previous week are the middle of the range of to-arrive bids; soybean meal prices are midrange of processor quotes. Chicago corn and soybean prices provided by USDA Market News. Six months, year ago comparisons are all spot cash. Based on prices reported by Feedstuffs' market reporters.

A: average

N/A: not available

 

Volume:87 Issue:16