Evening Report (VIP) -- December 20, 2013

December 20, 2013 08:31 AM
 

 

COF REPORT: PLACEMENTS LIGHTER THAN EXPECTED... USDA says cattle feedlot inventories totaled 10.725 million head on Dec. 1, roughly 100,000 head fewer than traders were anticipating. This is second lowest Dec. 1 feedlot number since USDA's current data series began in 1996. The mildly smaller-than-expected On Feed number was due to the combination of Placements coming in nearly four percentage points under expectations and Marketings slightly outpacing the pre-report guess.

Report details

USDA

Avg. Trade Guess

Range

% of year-ago levels

On Feed

95
95.4

94.4-96.1

Placements

97

100.9

95.0-104.2

Marketings

95

94.6

93.7-95.7

 

A weight breakdown of calves entering feedlots last month shows all categories except 600 pounders declining from year-ago levels. Lightweight placements dropped 10.7%, 6-weights rose 13.3%, 7-weights dropped 6.0% and heavyweight placements came in 6.2% under year-ago levels in November.

The On Feed and Marketing categories were very close to the pre-report guesses, meaning there will be little impact on nearby live cattle futures from this data. But deferred cattle futures should find some support from the lower-than-expected Placements figure.

 

 

APHIS PROPOSES PLAN TO ALLOW BEEF IMPORTS FROM BRAZIL... USDA’s Animal and Plant Health Inspection Service (APHIS) is proposing to amend its regulations to allow, under certain conditions, beef imports from specific Brazilian states. Earlier in the week, USDA and Brazil's Ministry of Agriculture, Livestock, and Food Supply (MAPA) issued a joint statement affirming their mutual commitment to science-based rulemaking and announcing both countries agreed to a path forward to address rules that currently limit bilateral beef trade. The proposed regulation changes would allow the importation of chilled or frozen beef while continuing to protect the U.S. from an introduction of foot-and-mouth disease (FMD). Click here for more.

 

 

EPA PROMISES TO 'TAKE ANOTHER LOOK' AT RFS PROPOSAL... After meeting with a bipartisan group of 16 senators on Wednesday, the Environmental Protection Agency (EPA) has agreed to "take another look" at a controversial proposal to reduce mandates for corn-based ethanol and other biofuels next year, according to Iowa Senator Tom Harkin.

The farm-state senators said EPA’s proposed rule "would hurt the biofuels industry by lowering the biodiesel target below current industry production levels and reduce the total biofuels target by over a billion gallons, discouraging investment and hurting jobs and rural communities across the country."

 

 

'SOYBEAN HIGHWAY' TO BECOME TOLLWAY... A Brazilian toll road operator won the rights earlier this week to operate a section of highway BR-163 (the "soybean highway"), reports Pro Farmer South American crop consultant Dr. Michael Cordonnier.

"This will turn these roads into toll roads and when that happens, they are supposed to get a lot better. This is the part of BR-163 that goes from the Mato Grosso/Mato Grosso do Sul border heading south to the state of Parana. Actually, this part of the road was in pretty good condition. The part of the road that really needs fixing is within the state of Mato Grosso and another company won the rights to turn that into a toll road," says Dr. Cordonnier.

Bottom line: This will help improve traffic flow, but now the truckers have to pay tolls whereas they did not have to pay before.

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