AgDay Daily Recap - July 25, 2011

July 25, 2011 07:44 AM
 

TODAY ON AGDAY:
JULY 25, 2011

CATTLE ON FEED:
GOOD MORNING. THE USDA RELEASED ITS LATEST CATTLE ON FEED REPORT FRIDAY AND FEEDYARD INVENTORY IS UP FOUR PERCENT OVER LAST YEAR. THIS AS THE U.S. WATCHES CATTLE NUMBERS CONTINUE TO DWINDLE. CATTLE AND CALVES ON FEED FOR SLAUGHTER IN FEEDLOTS OF ONE-THOUSAND HEAD OR MORE TOTALED 10.5 MILLION HEAD THIS MONTH. UP 4% OVER LAST JULY. ANALYSTS WERE ACTUALLY EXPECTING A NEAR 7% DECLINE IN PLACEMENTS THIS MONTH. STEERS WERE UP 4% AND HEIFERS UP 3%. MARKETINGS OF FED CATTLE HIT JUST OVER 2 MILLION--A 5% INCREASE OVER LAST YEAR.

CATTLE INVENTORY:
MEANWHILE THE "CATTLE INVENTORY" SAW A ONE PERCENTAGE POINT DECLINE FROM A YEAR AGO. USDA SAYS ALL CATTLE AND CALVES IN THE U.S. AS OF JULY 1ST TOTAL 100 MILLION HEAD. LAST YEAR AT THIS TIME IT WAS 101-MILLION. ALL COWS AND HEIFERS THAT HAVE CALVED, CAME IN AT 40.5 MILLION, DOWN 1% FROM YEAR AGO TOTALS. BEEF REPLACEMENT HEIFERS DROPPED 5%. AND THE 2011 CALF CROP IS ALSO EXPECTED TO BE ABOUT 1% SMALLER THAN 2010.

RISING BEEF PRICES:
THOSE FIGURES REPRESENT THE SHRINKING CATTLE HERD IN THIS COUNTRY. USDA SAYS IT'S ONE OF THE SMALLEST HERDS IN DECADES. AND AS WE'VE BEEN REPORTING LATELY, THE HERD SIZE CONTINUES TO DWINDLE - ESPECIALLY IN THE SOUTHERN PLAINS OF TEXAS, NEW MEXICO, OKLAHOMA AND KANSAS. MANY RANCHERS IN THE LONE-STAR STATE ARE LIQUIDATING THEIR HERDS...SELLING PRODUCTIVE COWS DUE TO DROUGHT, A LACK OF PASTURE AND HIGH FEED COSTS. I SPOKE WITH CAVINESS BEEF PACKERS IN HERFORD TEXAS--THEIR OPERATION HANDLES MOSTLY COWS. THEY SAY PRODUCTION IS RUNNING SIX DAYS WEEK DURING WHAT IS NORMALLY THEIR SLOW TIME. WHILE MOST OF THE INVENTORY IS OLDER COWS, YOUNGER CATTLE ARE STARTING TO COME IN AS PRODUCERS CULL DEEPER INTO THEIR GENETICS. MANY CALVES ARE BEING WEANED TWO OR THREE MONTHS EARLY.

CATTLE IN HEAT:
LAST WEEK'S HEAT AND HUMIDITY TOOK A TOLL ON CATTLE, SPECIALLY IN THE UPPER MIDWEST. THE LATEST FIGURES SHOW ABOUT 1,500 HEAD OF CATTLE IN SOUTH DAKOTA DIED FROM THE HEAT. MINNESOTA HAD ABOUT A THOUSAND. THERE ARE ALSO REPORTS OF LOSSES IN IOWA, ALTHOUGH THERE HAVE BEEN NO SPECIFIC NUMBERS. JEFF RUSACK FROM AGDAY AFFILIATE KDLT-TV IN SIOUX FALLS, SOUTH DAKOTA REPORTS ON LOSSES IN THAT STATE. THAT WAS JEFF RUSACK REPORTING. LIVESTOCK ASSOCIATIONS SAY IT'S IMPORTANT TO REPORT CATTLE LOSSES TO THEIR LOCAL FARM SERVICES AGENCY OFFICE. LIVESTOCK DEATHS FROM HEAT WILL QUALIFY UNDER THE LIVESTOCK INDEMNITY PROGRAM. BUT PRODUCERS ONLY HAVE 30 DAYS TO FILE A NOTICE OF LOSS REPORT AFTER THE DEATH SO THAT THEY CAN BE INCLUDED. UNDER THE 2008 FARM BILL, THE LIVESTOCK INDEMNITY PROGRAM CAN COVER UP TO 75% OF THE VALUE OF ANIMAL.

CATEPILLAR:
IN AGRIBUSINESS MACHINERY MAKER CATERPILLAR RELEASED ITS LATEST QUARTERLY REPORT. WORLD WIDE SECOND QUARTER PROFITS JUMPED 44 PERCENT COMING IN AT JUST OVER ONE BILLION DOLLARS.  TOTAL REVENUE WAS ALSO UP NEARLY 40% TO 14 BILLION. DESPITE SALES AND REVENUES SETTING ALL TIME RECORDS WALL STREET TOOK A NEGATIVE PERSPECTIVE. THE COMPANY TOOK A HIT ON PROBLEMS IN JAPAN AND ACQUISITION EXPENSES. CATERPILLARS STOCK FELL NEARLY 6% TO AROUND 105.

RICE OUTLOOK:
AND THE USDA MADE REVISIONS TO THE RICE OUTLOOK FOR THE YEAR.  THE U.S. CROP IS EXPECTED TO HIT ONE POINT 8-7 BILLION POUNDS. THAT'S 23% LOWER THAN LAST YEAR AND THE SMALLEST IN MORE THAN A DECADE. THE REDUCTION IS DRIVEN BY FEWER ACRES BEING PLANTED. EXPORTS OF U.S. RICE ARE ALSO EXPECTED TO BE SMALLER THAN PREVIOUSLY ANTICIPATED.

ANALYIS:
MARK GOLD

IN THE COUNTRY; CALI ALFALFA:
AS I MENTIONED LAST WEEK, THE NATION'S HAY ACRES ARE WAY DOWN THIS YEAR--THEIR LOWEST POINT SINCE DATA BEGAN BEING COLLECTED IN 1919. WHICH IS WHY EVERY CUTTING COUNTS. TODAY WE HEAD TO THE GOLDEN STATE, THE NATION'S BIGGEST ALFALFA GROWER, FOR A LATE NIGHT RIDE THROUGH THE ALFALFA FIELDS AS PRODUCERS WORK TO BALE THIS IMPORTANT CROP. TRACEY SELLERS OF CALIFORNIA COUNTRY TV HAS OUR STORY. THANKS TRACY--TRACY SELLERS REPORTING. STILL TO COME, FOOD AND YOUR FAMILY HEADS TO THE DAIRY STATE TO MEET AN ICE CREAM ENTREPRENEUR WHO UNDERSTANDS THE IMPORTANCE OF QUALITY PRODUCTS.

ICE CREAM MONTH:
IN FOOD AND YOUR FAMILY IT'S THE LAST WEEK OF JULY AND WE DON'T WANT TO FORGET TO CELEBRATE "ICE CREAM MONTH". IN FOND DU LAC, WISCONSIN, A FARMSTEAD ICE CREAM SHOP IS WINNING LOTS OF FANS AND LOTS OF AWARDS. AND YET KELLEY COUNTRY CREAMERY HAS BEEN OPEN ONLY ABOUT A YEAR. PROVIDED BY THE WISCONSIN MILK MARKETING BOARD, WE VISIT THE ICE CREAM SHOPPE WHICH PROVES EVEN IN A DOWN ECONOMY, A GOOD PRODUCT CAN KEEP PEOPLE COMING IN THE DOORS.

CONTACT PAGE:
WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. OR DROP AN EMAIL TO INBOX@AGDAY.COM. YOU CAN ALSO CHECK US OUT ON SOME OF THAT NEW TECHNOLOGY, AT WWW.FACEBOOK.COM/AGDAY.
 

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