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Articles from 2017 In August


Perdue allowing dairy farmers to opt out of MPP

Toa55/iStock/Thinkstock dairy cows being milked milking parlor milkers holstien
DOLLARS FOR DAIRY COMING: USDA announced $350 million as part of a broader $2 billion package under the Pandemic Market Volatility Assistance Program.

The U.S. Department of Agriculture's Farm Service Agency announced Aug. 31 that starting Sept. 1, 2017, dairy producers can enroll for 2018 coverage in the Dairy Margin Protection Program (MPP). However, it also announced that Agriculture Secretary Sonny Perdue is allowing producers the choice to opt out.  

“Secretary Perdue is using his authority to allow producers to withdraw from the MPP Dairy program and not pay the annual administrative fee for 2018,” said Rob Johansson, acting deputy undersecretary for farm production and conservation. “The decision is in response to requests by the dairy industry and a number of MPP Dairy program participants.”

To opt out, a producer should not sign up during the annual registration period.

“By opting out, a producer would not receive any MPP Dairy benefits if payments are triggered for 2018,” USDA said, adding that Perdue’s provision will be for 2018 only and is not retroactive.

Jim Mulhern, president and chief executive officer of the National Milk Producers Federation (NMPF), applauded Perdue’s decision, saying the Dairy MPP, in its current form, has been a disappointment to many dairy farmers.

“Today’s announcement to allow farmers to opt out of the program in 2018 is a welcome development in that it acknowledges the widespread dissatisfaction among farmers enrolled in the program," Mulhern said. "Simply put, the way the program was enacted in the 2014 farm bill, it does not meet the needs of America’s dairy farmers today, and declining participation levels amply illustrate farmers’ disenchantment with the MPP.”

Farmers who choose to opt out of the Dairy MPP will be able to enroll in the Livestock Gross Margin program for 2018, Mulhern explained.

NMPF has been working both with USDA and Congress to make significant improvements to the MPP.

“We had earlier suggested to USDA that, given this level of dissatisfaction, one option would be to allow farmers to opt out of the MPP in the coming calendar year,” NMPF added.

In a statement, Zippy Duvall, president of the American Farm Bureau Federation, said the Farm Bureau is pleased with the USDA announcement to allow dairy producers to exit the Dairy MPP. "Dairy farmers need access to effective risk management tools. Farm Bureau and our grassroots members look forward to working with USDA and Congress to enhance the dairy safety net,” he said.

Duvall explained that the Dairy MPP -- which was introduced in the 2014 farm bill -- was intended to offer protection against declines in the national average income-over-feed cost margin. However, he said dairy farmers participating in the program were required to pay a $100 administrative fee each year for the basic coverage option and, once enrolled, were required to remain in the program for the five-year life of the farm bill.

“Approximately 24,000 dairy farms, representing 80% of the U.S. milk supply, are currently enrolled in the program. However, this year, only 2% of the milk enrolled participated at levels above the basic coverage option. The low participation rate is due to the poor performance of MPP in providing a viable safety net to dairy farmers,” he said.

Livestock & poultry cash market comparisons, 8/30/17

Livestock and meat ($)

August 30

August 23

6 mos. ago

Year ago

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

191.50

193.09

206.98

196.49

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

106.50A

110.00

124.50A

110.00

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

158.00A

154.75A

145.25A

143.50A

Lean hogs, carcass, Iowa-Minn. 167-187 lb.(1)

69.21

75.89

70.66

63.53

Feeder pigs, 40 lb. national direct delivered(2)

38.50

39.92

74.78

29.71

SEW pigs, 10 lb., national direct delivered (per head)

22.06

19.11

52.38

19.52

Choice beef, cutout, cwt.

191.91

191.75

208.93

195.74

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

82.18

83.32

78.93

82.74

Hog corn ratio

18.57

20.40

20.32

20.15

Steer corn ratio

30.93

30.92

36.94

36.79

Poultry and eggs (cents)

 

 

 

 

Chickens, Grade A, fresh lb. Chicago

83.55a

85.22a

80.73a

77.60a

Hen turkeys, Grade A, frozen, lb., Chicago

97.50Aa

94.00Aa

101.50Aa

120.00Aa

Young tom turkeys, Grade A. frozen lb. Chicago

97.50Aa

94.75Aa

101.50Aa

129.00Aa

Eggs, Grade A, large, doz., Chicago

77.50

74.50

50.50

75.50

N/A: not available.         A: average.

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

Grain & ingredient cash market comparisons, 8/30/17

Major feed ingredients

August 30

August 23

6 mos. ago

Year ago

Corn No. 2, Chicago, bu.

 

 

 

 

Processor bid*

3.11A

3.235A

3.75A

3.13A

Terminal bid*

3.07A

3.17A

3.60A

2.89A

Milo, Kansas City, cwt.

5.30

5.125

5.75

4.73

Soybeans, Chicago, bu., processor bid

9.18A

9.28A

10.31A

9.53A

Soybean meal, 48% Decatur bid

294.40A

294.30A

332.80A

324.70

Cottonseed meal, Memphis, ton

195.00

195.00

215.00

285.00

Canola meal, Minneapolis, ton

209.60

208.30

260.00

212.20

Linseed meal, solvent, Minneapolis

250.00

250.00

320.00

320.00

Meat and bone meal, Chicago, ton

345.00

335.00

298.00

310.00

Fish meal, menhaden, Atlanta, ton

N/A

N/A

N/A

N/A

Corn gluten meal, 60%, Chicago, ton

508.00

513.00

535.00

508.00

Distillers dried grains, Chicago, ton

113.00

109.00

100.00

135.00

17% dehy. alfalfa pellets, Kansas City, ton

225.00

220.00

230.00

245.00

Millfeeds, midds, Minneapolis, ton

82.00

80.00

75.00

70.00

Molasses, cane, Houston, ton

130.00

130.00

130.00

140.00

Dried citrus pulp, Atlanta, ton

190.00

190.00

185.00

175.00

Whey, whole, Chicago, cwt.

40.00

39.50

48.00

30.00

Rolled oats, Minneapolis, ton

596.00

596.00

587.00

567.00

Barley, Los Angeles, cwt.

9.30

9.33

8.87

8.93

Feeding wheat, Kansas City, bu.

4.09

4.10

3.90

4.37

*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

Ingredient market prices, 8/30/17

ingredient market image

The following prices, which include delivery, were obtained Aug. 30 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. U.S. short tons, 2,000 lb. N-Nominal. N/A-Price not available. Click to download.

OILSEED PRODUCTS

 

 

(dollars per ton)

 

 

Soybean meal

 

 

(high-protein)

 

 

Atlanta

372.00

-

Boston

310.00

-6.00

Buffalo

N/A

-

Chicago

297.00

2.00

Delmarva

N/A

-

Fayetteville NC

382.00

-

Ft. Worth

324.30

-

Kansas City

285.00

-

Los Angeles

326.00

-

Memphis

N/A

-

Minneapolis

276.30

-7.90

Okeechobee

402.00

-

Portland

331.30

1.15

San Francisco

326.00

-

Twin Falls

N/A

-

Soybean meal

 

 

(low-protein)

 

 

Atlanta

N/A

-

Boston

305.00

-6.00

Buffalo

N/A

-

Chicago

285.00

2.00

Delmarva

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

285.00

-

Los Angeles

307.00

-1.00

Memphis

N/A

-

Minneapolis

N/A

-

Okeechobee

N/A

-

Portland

N/A

-

San Francisco

307.00

-1.00

Soybean hulls

 

 

Atlanta

N/A

-

Buffalo*

N/A

-

Chicago

115.00

-

Fayetteville, NC

N/A

-

Ft. Worth*

N/A

-

Los Angeles

145.00

-

Minneapolis

120.00

-

Okeechobee

N/A

-

San Francisco

145.00

-

Twin Falls

N/A

-

* unpelleted

 

 

Whole cottonseed

 

 

Atlanta

200.00

-

Buffalo

N/A

-

Chicago

235.00

-

Delmarva

N/A

-

Fayetteville NC

200.00

-

Ft. Worth

240.00

-

Los Angeles

335.00

2.00

Lubbock

210.00

-

Memphis

215.00

17.00

Okeechobee

237.00

-

Portland

302.50

-

San Francisco

335.00

2.00

Twin Falls

N/A

-

Cottonseed meal

 

 

Atlanta

325.00

-

Chicago

235.00

-

Delmarva

325.00

-

Fayetteville NC

325.00

-

Ft. Worth

245.00

-

Kansas City

235.00

5.00

Los Angeles

N/A

-

Lubbock

215.00

-

Memphis

195.00

-

Okeechobee

359.00

-

San Francisco

255.00

-5.00

Cottonseed hulls

 

 

Atlanta

170.00

-

Chicago

145.00

-

Fayetteville NC

170.00

-

Ft. Worth

155.00

-

Okeechobee

207.00

-

Los Angeles

N/A

-

Lubbock

130.00

-

San Francisco

167.00

-

Canola meal

 

 

Buffalo

N/A

-

Minneapolis

209.60

1.30

Los Angeles

260.00

-

Montreal

259.00

-

Portland

282.50

-1.15

San Francisco

260.00

-

Twin Falls

N/A

-

Vancouver

N/A

-

Sunflower seed meal

 

 

Fargo

145.00

-

Minneapolis

130.00

10.00

Linseed  meal

 

 

Atlanta

N/A

-

Chicago

275.00

-

Fargo

240.00

-30.00

Fayetteville NC

N/A

-

Ft. Worth

276.00

-30.00

Kansas City

230.00

-5.00

Minneapolis

250.00

-

Safflower meal

 

 

Los Angeles

N/A

-

San Francisco

136.00

3.00

ANIMAL BYPRODUCTS

 

 

(dollars per ton)

 

 

Meat and bone meal

 

 

(ruminant)

 

 

Buffalo

N/A

-

Chicago

345.00

10.00

Delmarva

410.00

-10.00

Fayetteville NC

360.00

-

Ft. Worth

310.00

-

Kansas City

300.00

-20.00

Los Angeles

285.00

-

Memphis

340.00

-

Minneapolis

330.00

-5.00

Portland

260.00

5.00

San Francisco

285.00

-

Meat and bone meal

 

 

(porcine)

 

 

Fayetteville NC

390.00

-

Los Angeles

326.40

-

Memphis

380.00

-

Minneapolis

345.00

-5.00

Flash-dried blood meal

 

 

(ruminant)

 

 

Fayetteville NC

875.00

-25.00

Los Angeles

925.80

0.80

Memphis

850.00

-25.00

Minneapolis

825.00

-

Flash-dried blood meal

 

 

(porcine)

 

 

Fayetteville NC

925.00

-25.00

Memphis

900.00

-25.00

Minneapolis

875.00

-25.00

Poultry byproduct meal

 

 

(feed grade)

 

 

Atlanta

N/A

-

Fayetteville NC

370.00

-

Ft. Worth

290.00

-

Kansas City

N/A

-

Los Angeles

N/A

-

Memphis

370.00

-

Poultry byproduct meal

 

 

(pet food grade)

 

 

Memphis

575.00

-25.00

Fayetteville NC

575.00

-25.00

Hydrolized feather meal

 

 

Atlanta

N/A

-

Delmarva

420.00

-

Fayetteville NC

400.00

-

Ft. Worth

440.00

-

Kansas City

460.00

-

Los Angeles

N/A

-

Memphis

400.00

-

Minneapolis

430.00

-

Menhaden fish meal

 

 

Atlanta

N/A

-

Buffalo

N/A

-

Chicago

1350.00

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Memphis

1300.00

-

Minneapolis

1455.00

-

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

33.00

-

Ft. Worth

N/A

-

Los Angeles

28.63

0.13

San Francisco

27.75

-

Yellow grease

 

 

Buffalo

N/A

-

Chicago

27.00

-

Delmarva

N/A

-

Fayetteville NC

27.00

-

Ft. Worth

28.00

-1.00

Kansas City

25.00

-

Los Angeles

27.63

0.13

Memphis

27.00

-

Minneapolis

28.00

-

San Francisco

26.75

-

Choice white grease

 

 

Chicago

30.00

-

Minneapolis

29.50

-

Bleachable fancy tallow

 

 

Buffalo

N/A

-

Chicago

34.00

-

Ft. Worth

34.00

-1.00

Los Angeles

N/A

-

Minneapolis

35.00

-1.00

San Francisco

N/A

-

Vegetable-animal blend

 

 

Ft. Worth

28.50

-1.00

Los Angeles

26.88

0.00

Minneapolis

28.50

-

San Francisco

26.88

0.00

Poultry grease

 

 

(feed grade)

 

 

Delmarva

27.00

-

Fayetteville NC

26.00

-

Memphis

26.00

-

Poultry grease

 

 

(pet food grade)

 

 

Memphis

35.00

-

Fayetteville NC

35.00

-

GLUTEN, HOMINY

 

 

(dollars per ton)

 

 

Corn gluten meal

 

 

Buffalo

N/A

-

Chicago

508.00

-5.00

Kansas City

550.00

5.00

Los Angeles

570.00

-

Corn gluten feed

 

 

Buffalo

N/A

-

Chicago

95.00

2.00

Fayetteville NC

105.00

-

Kansas City

135.00

2.00

Okeechobee

125.00

-

Twin Falls

N/A

-

Wahpeton

N/A

-

Hominy feed

 

 

Atlanta

155.00

-

Boston

138.00

-

Buffalo

N/A

-

Chicago

88.00

-

Fayetteville NC

292.00

-

Kansas City

85.00

-5.00

Los Angeles

165.00

-

Okeechobee

285.00

-

San Francisco

165.00

-

Twin Falls

N/A

-

BREWERS, DISTILLERS

 

 

(dollars per ton)

 

 

Brewers dried grains

 

 

Chicago

N/A

-

Kansas City

N/A

-

Malt Sprouts

 

 

Chicago

120.00

-

Milwaukee

95.00

-

Winona, Minn

95.00

-

Distillers dried grains

 

 

Atlanta

145.00

-5.00

Boston

140.00

-

Buffalo

N/A

-

Chicago

113.00

4.00

Fayetteville NC

145.00

-5.00

Kansas City

140.00

-

Los Angeles

173.00

-

Minneapolis

100.00

-10.00

Okeechobee

155.00

-5.00

Portland

173.50

-

San Francisco

173.00

-

Twin Falls

N/A

-

Brewers yeast

 

 

(dollars per pound, sacked)

 

 

Chicago

0.75

-

Milwaukee

0.75

-

Minneapolis

0.75

-

ALFALFA

 

 

(dollars per ton)

 

 

Dehydrated pellets

 

 

(17% protein)

 

 

Central Neb.

225.00

-

Buffalo

N/A

-

Chicago

300.00

-

Kansas City

225.00

5.00

Los Angeles

N/A

-

Minneapolis

225.00

15.00

Toledo

290.00

-

San Francisco

N/A

-

Suncured pellets

 

 

(15% protein)

 

 

Atlanta

N/A

-

Ft. Worth

190.00

-

Kansas City

200.00

5.00

Los Angeles

N/A

-

Portland

275.00

-

San Francisco

N/A

-

WHEAT MILLFEEDS

 

 

Shorts

 

 

Chicago

85.00

-

Ft. Worth

N/A

-

Los Angeles

130.00

-1.00

Millrun

 

 

Los Angeles

121.00

-1.00

Portland

125.00

-5.00

San Francisco

N/A

-

Twin Falls

N/A

-

Bran

 

 

Buffalo

N/A

-

Chicago

105.00

-

Los Angeles

125.00

-1.00

Minneapolis

N/A

-

Middlings

 

 

Buffalo

N/A

-

Chicago

85.00

-

Fayetteville NC

N/A

-

Ft. Worth

110.00

-

Kansas City

65.00

2.00

Los Angeles

128.00

-1.00

Memphis

116.00

8.00

Minneapolis

82.00

2.00

Okeechobee

N/A

-

DAIRY BYPRODUCTS

 

 

(dollars per hundredweight)

 

 

Dried skim milk

 

 

Ft. Worth

88.00

-1.00

Minneapolis

89.00

-1.00

Dried buttermilk

 

 

Ft. Worth

92.50

1.00

Minneapolis

90.50

-

Whole whey

 

 

Chicago

40.00

0.50

Ft. Worth

39.00

-0.50

Kansas City

34.75

-

Minneapolis

38.50

-0.25

Whey protein concentrate

 

 

Ft. Worth

83.50

-

Milwaukee

83.50

-

Lactose

 

 

Ft. Worth

32.00

-1.00

Minneapolis

32.00

-1.00

OATS, RICE PRODUCTS

 

 

(dollars per ton)

 

 

Rolled oats

 

 

Chicago

400.00

-

Kansas City

450.00

-

Minneapolis

596.00

-

Crimped oats

 

 

Chicago

370.00

-

Kansas City

310.00

-

Minneapolis

423.00

-

Pulverized oats

 

 

Chicago

120.00

-

Minneapolis

138.00

-

Reground oat feed

 

 

Chicago

65.00

-

Kansas City

30.00

-

Minneapolis

72.00

-

Oats

 

 

(dollars per bushel)

 

 

Buffalo

N/A

-

Minneapolis

2.73

0.01

Portland*

202.50

-

(*per ton)

 

 

Rice bran

 

 

Atlanta

N/A

-

Ft. Worth

N/A

-

Freeport

N/A

-

Kansas City

145.00

-

Memphis

N/A

-

San Francisco

N/A

-

Stuttgart, Ark.

N/A

-

Rice millfeeds

 

 

Atlanta

N/A

-

Ft. Worth

N/A

-

Freeport

N/A

-

Kansas City

70.00

-

Memphis

N/A

-

Stuttgart, Ark.

N/A

-

Rice hulls

 

 

Ft. Worth

N/A

-

Kansas City

45.00

-

DRIED PULP

 

 

(dollars per ton)

 

 

Citrus pulp pellets

 

 

Atlanta

190.00

-

Fayetteville NC

200.00

-

Okeechobee

265.00

-

Los Angeles*

N/A

-

*(sold wet)

 

 

Beet pulp pellets

 

 

Atlanta

N/A

-

Boise

N/A

-

Chicago

150.00

-

Fayetteville NC

N/A

-

Kansas City

400.00

-

Minneapolis

175.00

10.00

Portland

200.00

-

Saginaw

195.00

10.00

Beet pulp shreds

 

 

Mpls (sacked)

325.00

10.00

Los Angeles*

115.00

-

San Francisco

N/A

-

Twin Falls

N/A

-

*bulk, wet

 

 

GRAINS

 

 

Barley feed

 

 

Kansas City (bu.)

4.70

-

Los Angeles (cwt)

9.30

-0.03

Portland (ton)

172.50

-2.50

San Francisco (cwt)

9.30

-0.03

Feed wheat

 

 

Atlanta (bu.)

10.58

0.11

Fayetteville NC (bu.)

10.58

0.11

Kansas City (bu)

4.09

-0.01

Los Angeles (cwt)

N/A

-

San Francisco (cwt)

N/A

-

Corn

 

 

(dollars per bushel)

 

 

Atlanta

5.24

-0.31

Boston

3.40

-0.40

Buffalo

N/A

-

Chicago

3.36

-0.12

Delmarva

3.47

-0.26

Fayetteville NC

5.04

-0.31

Ft. Worth

N/A

-

Kansas City

3.35

0.08

Los Angeles*

8.23

-0.20

San Fran (rail)*

8.23

-0.20

San Fran (truck)*

N/A

-

Memphis

3.31

-0.07

Minneapolis

2.77

-0.22

Okeechobee

5.49

-0.31

Portland (per ton)

154.63

-2.00

(*per cwt)

 

 

Milo

 

 

(dollars per bushel)

 

 

Atlanta

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

3.61

-0.05

Kansas City

2.97

0.10

Los Angeles*

8.22

-0.28

Memphis

N/A

-

*(per cwt.)

 

 

Ground grain screenings

 

 

(dollars per ton)

 

 

Ft. Worth

4.17

-

Kansas City

30.00

-

OTHER

 

 

(dollars per ton)

 

 

Almond hulls

 

 

Los Angeles

105.00

-4.00

San Francisco

85.00

-13.00

Bakery feed

 

 

Atlanta

180.00

-

Buffalo

N/A

-

Fayetteville NC

185.00

-

Memphis

175.00

-

Minneapolis

145.00

-2.00

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

130.00

-

Kansas City

255.00

-

Los Angeles

N/A

-

Memphis

N/A

-

Minneapolis

177.50

-

New Orleans

132.50

-2.50

San Francisco

N/A

-

8-30-2017 Ingredient Market

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LIVESTOCK MARKET: Holiday meat demand supports markets

Purestock/Thinkstock meat case

Meat has been showing some demand for both pork and beef before the Labor Day holiday, according to David Williams, director of the Agribusiness Intelligence Protein Group at Informa IEG. This has provided some stabilization to both the beef and pork cutouts, which had been experiencing a seasonal decline due to the “dog days of summer.”

The increased demand has somewhat stabilized futures markets and the cash markets as well, Williams explained.

As for where prices may head following the holiday demand, he said, “We’ll have to wait until the first full week following Labor Day to see how the market can handle larger amounts of supply that are coming from both beef and pork.”

In the beef sector, Williams said there has been not only an increased supply of beef but also an increase in cattle weights as the U.S. has been experiencing optimal cool temperatures, which are “really kind of putting the pounds on cattle.”

The hog sector is experiencing a seasonal uptrend in weights, but they are also above average, Williams said, “and we do have more supply.”

The highly anticipated new processing plants in Iowa and Michigan will help absorb some of the increased supply, but they have only just begun initial testing. “It’s going to be a slow process. My belief is that it’s going to take months,” Williams said.

In the markets, lean hog futures prices will not likely go lower, and cash prices have fallen drastically very quickly, but Williams said this may slow after Labor Day.

The cattle futures market is “a little bit overdone at the moment,” he said, adding that cash prices have traded up. “I believe we’re going to try to stabilize at this $105/cwt. level,” he said.

Cash prices, on the other hand, could rally to the $112-113/cwt. level in October.

Cattle expansion slowdown?

According to Purdue University livestock economist Chris Hurt, one way to monitor whether U.S. producers are expanding or contracting their herds is to examine female (cow and heifer) slaughter relative to steer slaughter.

“When expansion is underway, female slaughter falls relative to steer slaughter as cow/calf producers hold back both cows and heifers from slaughter to increase the size of their breeding herds. Conversely, when liquidation is underway, female slaughter increases relative to steer slaughter as both cow and heifer slaughter accelerate,” he said.

So far this year, Hurt pointed out that female slaughter as a percentage of steer slaughter has been higher than a year ago in every month except February.

“Although the female slaughter pace is running ahead of last year, it's been about the same or somewhat below both the five- and 10-year averages for each respective month this year. Considering this longer-term perspective, the slaughter data suggest that interest in expansion has slowed down, but it does not suggest that any herd liquidation is underway,” he said.

According to Hurt, an additional consideration with respect to herd expansion/contraction is the, as of now, unknown impact Hurricane Harvey will have on Texas cattle producers.

“Texas is home to the largest beef cow inventory of any state in the nation, and as of this weekend, 54 Texas counties, where over 1 million beef cows reside, were declared a disaster area,” he said. “How large of an impact the storm will have on both fall 2017 calf marketings and cow inventories is not clear, but the magnitude of the rainfall totals and resultant flooding point to the potential for significant calf and cow losses.”

Market recap

Live cattle futures were mixed this week, but mostly lower. October contracts closed higher Monday at $108.375/cwt. but lower Thursday at $105.40/cwt.

Feeder cattle futures followed the same trend. September contracts closed higher at $145.875/cwt. but turned lower Thursday at $142.575/cwt.

The Choice and Select beef cutouts closed higher at $191.91/cwt. and $191.34/cwt., respectively.

Lean hog futures continued a downward trend at the beginning of the week but found strength heading into the holiday weekend. October contracts fell through Wednesday to $60.225/cwt. but recovered some of the losses Thursday, closing at $61.40/cwt.

Pork cutout values continued to fall this week. The wholesale pork cutout closed lower at $83.58/cwt., down from $87.18/cwt. the prior week. Loins and hams were lower at $82.18/cwt. and $68.56/cwt., respectively. Bellies continued to fall this week, closing at $126.28/cwt. on Thursday.

Hogs delivered to the western Corn Belt continued to fall, closing Thursday at $64.26/cwt., down from $70.58 the prior week.

The U.S. Department of Agriculture reported the Eastern Region whole broiler/fryer weighted average price at 95.78 cents/lb. on Aug. 25.

According to USDA, egg prices were steady, with a higher undertone. Offerings were light to, at times, moderate. Supplies were light to moderate, while demand was moderate to good.

Large eggs delivered to the Northeast were higher at 83-87 cents/doz. Prices in the Southeast and Midwest were also lower at 84-87 cents/doz. and 75-78 cents/doz., respectively. Large eggs delivered to California were higher at $1.25/doz.

For turkeys, USDA said the market was steady to weak. Offerings were mixed, while demand was light to sometimes moderate. Prices for hens and toms rose to 92 cents to $1.03/lb.

EU opens in-depth investigation into Bayer/Monsanto merger

fotokostic/iStock/Thinkstock. tractor plowing field farming

The European Commission has opened an in-depth investigation into Bayer’s acquisition of Monsansto due to concerns that the merger may reduce competition in areas such as pesticides, seeds and traits.

The commission said the proposed acquisition would create the world's largest integrated pesticide and seed company because it would combine two competitors with leading portfolios in non-selective herbicides, seeds and traits and digital agriculture.

“Both companies are active in developing new products in these areas,” the commission stated. “Moreover, the transaction would take place in industries that are already globally concentrated, as illustrated by the recent mergers of Dow and DuPont and Syngenta and ChemChina, in which the commission intervened to protect competition for the benefit of farmers and consumers.”

Commissioner Margrethe Vestager, in charge of competition policy, said seeds and pesticide products are essential for farmers and, ultimately, consumers, which emphasizes the need to be thorough.

“We need to ensure effective competition so that farmers can have access to innovative products, better quality and also purchase products at competitive prices and at the same time maintain an environment where companies can innovate and invest in improved products,” she said.

The European Commission has preliminary concerns that the proposed acquisition could reduce competition in a number of different markets resulting in higher prices, lower quality, less choice and less innovation. In particular, the initial market investigation identified preliminary concerns in the following three areas:

* Pesticides. Monsanto's pesticide product glyphosate is the most sold non-selective herbicide in Europe. Bayer produces glufosinate ammonium, also a non-selective herbicide and one of the very few alternatives to glyphosate. According to the commission's preliminary investigation, Monsanto and Bayer are two of a limited number of competitors in this field capable of discovering new active ingredients and developing new formulations, including addressing the growing problem of weed resistance to existing products.

In addition, the European Commission said it will further assess both Monsanto's activities in biological pesticide products that would compete with Bayer's existing portfolio of chemical pesticide products and the parties' overlapping activities in products that tackle varroa mites, a parasite affecting bee colonies in Europe.

* Seeds. Bayer and Monsanto are both active in the breeding of vegetable seeds. The commission's initial investigation showed that the parties have high combined market shares in a number of these vegetable seeds markets and that some of their products compete directly with each other.

Bayer and Monsanto are also active in the breeding and licensing of seeds for several field crops. Monsanto has the highest market share in oilseed rape seeds in Europe. Bayer, with the highest market share in oilseed rape seeds at the global level, is one of the few players with the means to compete intensively in this market. Furthermore, the commission noted that both parties are important licensors of cotton seeds to their competitors in Europe, and both are investing in research and innovation programs for wheat.

* Traits. The European Commission's preliminary investigation indicated that Monsanto has a dominant position in several traits markets worldwide. Additionally, Bayer is one of the few competitors to Monsanto in certain traits markets and has notably developed alternative herbicide tolerance traits to Monsanto's.

“The commission will investigate in particular whether the transaction could lead to a reduction of competition in these markets, taking into account the existing links between the few worldwide competitors through cross-licensing and through research and development cooperations,” it said.

The commission will further investigate whether competitors' access to distributors and farmers could become more difficult if Bayer and Monsanto were to bundle or tie their sales of pesticide products and seeds, especially with the advent of digital agriculture.

“Digital agriculture consists of the collection of data and information about farms with the aim of providing tailored advice or aggregated data to farmers. Both Bayer and Monsanto are currently investing in this emerging technology,” the European Commission explained.

Time frame for decision

The European Commission was informed of the transaction on June 30, 2017. It now has 90 working days, until Jan. 8, 2018, to make a decision. The commission said opening the in-depth investigation does not prejudge the final result of the investigation.

Bayer and Monsanto submitted commitments on July 31 to address some of the commission's preliminary concerns. However, the commission considered these commitments insufficient to clearly dismiss its serious doubts as to the transaction's compatibility with the European Union Merger Regulation. The commission, therefore, did not test them with market participants.

Given the worldwide scope of Bayer's and Monsanto's activities, the European Commission said it is also working closely with other competition authorities, notably with the U.S. Department of Justice and the antitrust authorities of Australia, Brazil, Canada and South Africa.

Names in the News: September 2017

Names in the News

SUPERIOR FARMS, Sacramento, Cal. — Bob Mariano has joined the company as director of marketing. Mariano was previously with Raley's.

 

KENT NUTRITION GROUP INC., Muscatine, Iowa — Laura Compart has joined the sales team as fleet retail sales specialist. Compart will be responsible for sales and service of company branded products sold in fleet, farm and home retail outlets throughout Minnesota and Iowa.

Kimberly Flanders has been promoted to store manager of the Bangor, Maine, store. Flanders was most recently assistant manager.

 

CANADIAN BIO-SYSTEMS, Calgary, Alb. — Paul Garvey has joined the company as sales manager, poultry. Garvey will focus on servicing demand for bio-based feed additives that support "raised without antibiotics" production, including an emphasis on facilitating aligned programs and strategies among producers, feed mills, processors and retailers.

 

ANPARIO, Nottinghamshire, U.K. — Helen Houghton has been appointed corporate development director. Houghton will assist in the development of strategic new sales channels and specific sales-related projects globally and will also assume line manager responsibility for marketing and the global pricing strategy team. She was previously with Boehringer Ingelheim Animal Health.

 

CROPLIFE AMERICA, Washington, D.C. — Jay Vroom will retire from his position as president and chief executive officer at the end of 2018, after nearly 30 years.

 

NEOGEN CORP., Lansing, Mich. — John Adent has been named president and chief executive officer. Adent was most recently CEO.

Richard E. Calk Jr. has resigned as president and chief operating officer.

 

SANDERSON FARMS INC., Laurel, Miss. — Christy Holifield has been named corporate cash management manager. Holifield will be responsible for supporting treasury and cash management operations and for developing strategies to maximize efficiencies, safeguard assets and minimize costs. She was most recently corporate cash management accountant.

 

CHORE-TIME, Milford, Ind. — Frank Luttels has been named layer product manager. Luttels will be responsible for managing product lines, developing marketing plans and sharing knowledge with employees, distributors, animal husbandry companies, trade associations and more.

 

HAYSSEN FLEXIBLE SYSTEMS, Duncan, S.C. — Douglas McGraw has been named president. McGraw was previously with Topa Equities Ltd.

 

BROOKSIDE AGRA, O'Fallon, Ill. — Mary Doerschuck has joined the company as product registration and compliance manager. Doerschuck will coordinate product registrations, trademarks and renewals and handle tonnage reports, export documentation and accounts payable and receivable. She will also provide sales, customer service and administrative support.

 

FARM FOUNDATION, Oak Brook, Ill. — Megan Provost will join the foundation as vice president of policy and programs, effective Oct. 2. Provost is currently with Dow AgroSciences.

 

MAXI-LIFT INC., Dallas, Texas — Matt Porter has joined the company as technical sales specialist for the Great Plains region. Porter will focus on driving sales and increasing territory market share. He was previously with Arm & Hammer Animal Nutrition.

 

NUTRIAD, Dendermonde, Belgium — Karen de Ridder has been appointed business development manager preservation and functional ingredients.

 

 

STONEHAVEN CONSULTING, Andermatt, Switzerland — Brian Kopp has been appointed partner. Kopp was previously with Elanco Animal Health.

 

FIELDREVEAL, Watertown, S.D. — Matt Hesse has been named chief executive officer. Hesse was previously with Winfield United.

 

VERISEM B.V., Amsterdam, Netherlands — Philippe Rousseau was named global chief executive officer. Rousseau will direct the operations of the three primary companies — Brotherton Seed Co. Inc., Condor Seed Production Inc. and Suba Seeds Co. — as well as any future acquisitions or new business developments. He was previously with Syngenta.

 

ZINPRO CORP., Eden Prairie, Minn. — Daniel Hosch has joined the company as account manager — Iowa. Hosch will provide feed companies, nutritionists and producers in Iowa and surrounding areas with performance minerals sales support to encompass multiple species, including beef, dairy, equine, show and swine, among others.

 

COTTON INC., Cary, N.C. — Dr. Jesse Daystar has been appointed vice president and chief sustainability officer. Daystar will oversee and coordinate internal and external sustainability efforts. He was previously with Duke University.

 

SELECT SIRES, Plain City, Ohio — Brandon Thesing has joined the company as regional account manager. Thesing will be responsible for delivering genetic sales support to clients in the Interstate 29 region of Nebraska, South Dakota, Iowa and Minnesota. He was previously with Minnesota Select Sires Co-op Inc.

 

U.S. GRAINS COUNCIL, Washington, D.C. — Mohamed Salah Bouthour joined the council as regional marketing specialist in the Tunis, Tunisia, office. Bouthour will support council activities in the Middle East and North Africa markets. He was previously with S.G.S.

Catalina Correa has joined the council as regional marketing specialist for the Western Hemisphere based in Medellin, Colombia. Correa will support ongoing marketing programs in the region, with a focus on Central America. She was previously with Solla.

Yantian Zeng has joined the council as program manager in the Beijing, China, office. Zeng will manage the trade and policy programs in China and assist with government relations and ethanol programming. She was previously with the U.S. Soybean Export Council.

 

SORGHUM CHECKOFF, Lubbock, Texas — Dr. Kim McCuistion has been named animal nutrition director. McCuistion will assist with efforts related to animal nutrition, market development and end-user relations. She was previously with Texas A&M University-Kingsville.

 

TOPIGS NORSVIN USA, Burnsville, Minn. — Dr. Kristine Harms has joined the company as veterinarian. Harms will be responsible for multiplication veterinary support, health and biosecurity auditing and training, veterinary responsibilities related to the import/export of animals and other regulatory duties.

 

FEVERTAGS LLC, Amarillo, Texas — Jeff Baxter has joined the company as global sales and marketing manager. Baxter will be responsible for managing global distribution partnership relations and for leading sales and marketing launch efforts in bovine attractive markets for the FeverTags TempVerified technology. He was previously with Thermo Fisher Scientific.

 

IMMUCELL, Portland, Maine — Rick Choate has joined the company as regional sales and marketing manager. Choate will lead sales and marketing efforts in the western U.S. region.

Dale Miller has joined the company as regional sales and marketing manager. Miller will lead sales and marketing efforts in the northeastern U.S. and Canada.

 

BJM PUMPS, Old Saybrook, Conn. — Jay Gallagher has retired as Atlantic regional sales manager.

Steve Mosley has been named Atlantic regional sales manager. Mosley will be responsible for establishing and supporting pump distribution and selling channels for the Atlantic region. He was most recently application engineer.

 

CENTRAL LIFE SCIENCES, Schaumburg, Ill. — Kirk Dailey has joined the Livestock Feed Additives division as sales development manager. Dailey will be responsible for sales of the feed-through fly control solution for swine and associated products. He was previously with Prairieland Feeds.

Tanner Shelley has joined the specialty agriculture sales team as sales development manager. Shelley will be responsible for sales of the Bug Free Grains lineup for the East Coast territory. He was previously with Vantage South.

Eugene Spellman has joined the Livestock Feed Additives division as regional sales manager. Spellman will be responsible for sales of the feed-through fly control solution for swine and associated products. He was previously with Merck Animal Health.

Dannis Warf has joined the specialty agriculture sales team as regional sales manager. Warf will be responsible for sales of the Bug Free Grains lineup in the territory comprised of Iowa, Illinois, Indiana, Ohio and Michigan. He was previously with Royal Pest Solutions and Fumigation.

 

ZINPRO CORP., Eden Prairie, Minn. — Sarah Fan has joined the global marketing team as marketing coordinator — China. Fan will focus on coordinating digital marketing campaigns and communications via channels such as WeChat and the Chinese-language website and will help organize company activities at trade shows and seminars.

Sophie Hansen has joined the global marketing team as marketing assistant — North America. Hansen will coordinate and assist marketing efforts for customers in the U.S. and Canada.

Annette Heijer has added marketing responsibilities to her current role as office manager for the European office in Boxmeer, Netherlands. Heijer will spend half her time working as part of the international marketing team and will lead several marketing projects and event planning efforts to support sales throughout the International Sales Division.

 

CROPLIFE AMERICA, Washington, D.C. — Ethan Mathews has joined the organization as director of government relations. Mathews will be responsible for the development, implementation and management of legislative and political pesticide policy strategies in support of the organization's objectives. He will manage government relations activities on the federal policy efforts and will engage with external allies and member companies through the committees and issue management teams. He was previously with the National Corn Growers Assn.

 

ANPARIO, Nottinghamshire, U.K. — Heidi Hall has been appointed global technical manager — swine. Hall was previously with AB Agri.

 

PMI NUTRITIONAL ADDITIVES, Arden Hills, Minn. — Dr. Benjamin E. Bass has joined the company as a swine research and technical support manager. Bass was previously with Diamond V.

Brynn Kepler has joined the company as technical sales specialist for the Upper Midwest. Kepler will cover sales in South Dakota, western Minnesota, northwestern Iowa and northeastern Nebraska. She was previously with Hubbard Feeds.

Marcia Itle-O'Connor has joined the company as technical sales specialist for the Northeast region.

Katrine Parmley-Gates has joined the company as formulation specialist.

Brad Peissig has joined the company as technical sales specialist. Peissig will support producers in Wisconsin and eastern Minnesota. He was previously with Land O'Lakes.

 

CROPLIFE AMERICA, Washington, D.C. — Dr. Brenda Stahl has joined the organization as director of human health policy. Stahl will be responsible for the development, implementation and management of science and regulatory policy strategies on human health issues in support of the association's objectives. She will work with member leaders to manage the human health and policy groups and committees. She was previously with the Food & Drug Administration's Office of Food Safety.

 

UNITED EGG PRODUCERS, Johns Creek, Ga. — Dr. Larry Sadler has been named vice president of animal welfare. Sadler will work with egg farmers, customers, supply chain managers and industry thought leaders to focus on continuous improvement and find solutions that advance the health and well-being of hens. He was previously with Kraft Heinz.

 

DIAMOND V, Cedar Rapids, Iowa — Kevin Corizzo has joined the company as content marketing manager/technical writer. Corizzo will work with the scientific, technical and marketing teams to connect expertise in animal nutrition, animal health and food safety to farm, food and consumer markets around the world. He was previously with BVS Performance Solutions.

 

NUSCIENCE GROUP, Drongen, Belgium — Roland Brugger has been appointed chief innovation officer. Brugger will be responsible for the future innovation focus of the company, guiding research, product management and product development. He will also represent the innovation team and projects on the executive committee. He was previously with Neovia.

 

PINNACLE OPERATING CORP., Loveland, Colo. — Robert Marchbank has been named president and chief executive officer. Marchbank will lead the agriculture retail and wholesale distribution businesses across 27 states. He was previously with ProBuild Holdings Inc.

 

COBB-VANTRESS INC., Siloam Springs, Ark. — Dr. Gene Shepherd has been appointed managing director of world quality assurance and veterinary services. Shepherd will lead the team of health, biosecurity and animal welfare experts. He was previously manager of veterinary programs within the North American facilities.

 

ARYSTA LIFESCIENCE NORTH AMERICA, Cary, N.C. — Greg Adams has joined the company as territory sales manager for Arkansas, Louisiana, Mississippi and southern Missouri.

 

FORM-A-FEED, Sioux Falls, S.D. — Ian Wood has joined the company as dairy production and nutrition specialist. Wood will work with dairy producers in the Midwest.

 

ZINPRO CORP., Eden Prairie, Minn. — Tanner Schmidt has joined the company as account manager — Pacific Coast. Schmidt will be responsible for cultivating sales of performance minerals and providing technical sales support to feed and premix companies, nutritionists and livestock producers in California, western Oregon, western Washington and western Nevada. His primary focus will be on beef cattle, but he also will work with dairy, equine, show animals and all other species.

CBiRC introduces idea for new molecules, innovation, value

With crude oil selling for less than $50 a barrel, there's little economic incentive to develop biorenewable chemicals as only drop-in replacements for petrochemicals.

That's a reality that has leaders of the National Science Foundation Engineering Research Center for Biorenewable Chemicals (CBiRC) based at Iowa State University proposing a new model for creating, applying and commercializing chemicals made from corn stalks, wood chips and other sources of biomass.

The researchers' model is based on nine years of CBiRC work to study, de-risk and develop biorenewable technologies. The model calls for identifying "bioprivileged molecules" that offer unique properties that could lead to new products.

The model was introduced by CBiRC's Brent Shanks and Peter Keeling in a recent perspectives article, "Bioprivileged Molecules: Creating Value from Biomass," published by the journal Green Chemistry. Shanks is the director of CBiRC, an Anson Marston distinguished professor in engineering at Iowa State and the Mike & Jean Steffenson chair in chemical and biological engineering. Keeling is the industrial collaboration and innovation director for CBiRC.

"Bioprivileged molecules by their origin from biological-derived molecules and concomitant plethora of functionalities have the potential to greatly expand the bioproduct horizon beyond the scope of petrochemicals," Shanks and Keeling wrote in the paper.

The two define bioprivileged molecules as chemical intermediates that come from biological sources and can be efficiently converted to various products, including new chemicals and drop-in replacements for existing chemicals.

Shanks and Keeling also presented their ideas about bioprivileged molecules during a January workshop supported by the National Science Foundation and a June conference sponsored by the U.S. Department of Energy.

"What we're talking about is novel molecules with new properties," Keeling said. "These molecules haven't been thought about because they weren't possible from petrochemicals, but there could be great value in this novelty."

Shanks said CBiRC — established in 2008 with the goal of combining the tools of biologists and chemists to develop hybrid technologies for producing biorenewable chemicals — has pointed the way to just such an approach.

No new molecules

Oil refineries turning crude oil into fuels also produce light gases as a byproduct. Companies have taken those gases and turned them into the intermediate molecules (alkenes and aromatics) that feed the petrochemical industry and produce its plastics, fibers, adhesives, detergents, paints, inks and much more.

That industry has been in business for more than a century. As a result, it's working with familiar molecules and efficient processes that produce low-cost chemicals.

Shanks said researchers affiliated with CBiRC, which has been supported by a series of grants totaling $35.26 million from the National Science Foundation, weren't finding economically viable ways for biobased chemicals to replace those petrochemicals from inexpensive crude oil.

However, he said the petrochemical industry hasn't produced new commercial molecules in two decades. That has created what could be an opening for valuable biobased chemicals.

Shanks said, "The question you have to ask is, 'Do we have all the molecules we need?' Are we done?"

He said CBiRC researchers have been asking scientists and engineers in the consumer products industry if they had all the molecules they needed, and "the resounding answer we get is no. They say, 'We need new innovation, new products, new molecules.'"

So, where are those molecules going to come from?

Shanks and Keeling point to biomass from plants as a source of new intermediate molecules.

"Biomass-derived feedstocks hold particular promise for dramatically increasing the pool of possible intermediates because they provide a rich array of chemical complexity," they wrote in their paper.

The resulting chemical products could be next-generation pharmaceuticals, nutraceuticals, antimicrobials, insecticides, herbicides, consumer goods and specialty chemicals.

"There is no doubt that biomass-derived molecules hold great promise for generating products with enhanced properties," they wrote.

It will take a lot of testing to figure out exactly what bioprivileged molecules can do. Shanks and Keeling wrote that the way forward should include new computational and experimental strategies to test biobased chemicals for new and valuable applications.

Keeling said CBiRC is working to show the way by developing approaches to systematically identify bioprivileged molecules as well as high-throughput strategies that can quickly evaluate thousands of new molecules for applications in various industries.

"We're saying, 'Let's make molecules,'" Keeling said. "It's very hard to design your way to a new molecule. So we're taking new, bioprivileged molecules and seeing where they can best be used."

Unified approach urged for plant, animal breeding

BBSRC close up of growing corn plants

Unifying the approaches to plant and animal breeding through the use of genomic selection is crucial to achieving global food security, according to a global team of leading scientists.

In a paper published this week in the international journal Nature Genetics, scientists from the U.K.'s National Institute of Agricultural Botany (NIAB), The Roslin Institute at the University of Edinburgh in Scotland and Scotland’s Rural College (SRUC) assert that global collaboration and investment across the two disciplines is central to increasing agricultural productivity and resilience.

Exploiting scientific critical mass and the high volume of genomic data about plant and animal species now available would help address questions that are common to both disciplines. This would lead to "game-changing" advances in breeding while simultaneously creating a platform for new scientific discoveries and "products" — such as plants that can grow with less water or lower nutrient levels — that may be of particular benefit to the developing world.

SRUC professor, principal and chief executive Wayne Powell co-authored the paper with professor Ian Mackay, head of quantitative genetics at NIAB; Tinashe Chiurugwi, former NIAB research scientist, and professor John Hickey, chair of animal breeding at The Roslin Institute.

“Genomic selection has made it possible, for the first time since the dawn of agriculture, to carry out genetic selection without relying on the assessment of visible characteristics, known as phenotyping," Powell said. “Genomics provide a common technology base, allowing the bringing together of plant and animal breeding that would create a step change in the rate of genetic gain for crops, livestock and aquaculture while also providing a very strong platform for new discoveries. Not only will we be able to produce new varieties and breeds; we will also have a better understanding of the biological processes that underpin their performance.

“We already have examples of where genomic selection is making major changes in the private sector, such as its use in the dairy industry, where the interval between generations of cattle has been shortened from five to two years. However, there is a huge opportunity for it to be used to deliver public good by bringing benefits to the developing world,” Powell added.

The unification of animal and plant breeding will require a coordinated global effort by scientists and research funders, the advancement of scientific skills and the development of new partnerships spanning the public and private sectors, the authors said.

Hickey explained, “While plant and animal breeding have the same roots and the same goals, they have diverged somewhat over the decades due to biologically induced requirements for different technical approaches. Genomic selection is the technology through which they can again coalesce. This will require new ways of structuring breeding programs and the research programs that support them.”

The Nature Genetics paper was the result of the "Implementing Genomic Selection in CGIAR Breeding Programs" workshop that brought together public and private plant and animal breeders with genomics technology vendors. The workshop was funded by the food security research consortium CGIAR and the U.K. Biotechnology & Biological Sciences Research Council.

NIAB is a major international center in plant research, crop evaluation and agronomy, with nearly 100 years of experience and an international reputation for independence, innovation and integrity. With headquarters in Cambridge, U.K., and regional offices across Britain, NIAB spans the crop development pipeline and has the specialized knowledge, skills and facilities required to support the improvement of agricultural and horticultural crop varieties, to evaluate their performance and quality and to ensure that these advances are transferred into on-farm practice through efficient agronomy.

SRUC supports innovation and sustainable development in agriculture and the rural sector in Britain and internationally.