News Update

September 23, 2016

China Takes First Step Toward Resuming Beef Trade

China’s Ministry of Agriculture and General Administration of Quality Supervision, Inspection and Quarantine have announced China’s ban on imports of U.S. beef has been lifted.

The U.S. Meet Export Federation (USMEF) says, “While it is an important first step in the process of resuming beef exports with China, USMEF understands that China must still negotiate with USDA the conditions that will apply to U.S. beef exports entering this market.”

While product will not begin being shipped to China as of now, negotiations can resume and allow for markets to eventually open a large market for beef producers.

For more information email Joe Schuele at jschuele@usmef.org or call 303-547-0030.

— Adapted from a release from USMEF.

Fall Feeder-cattle Market Prospects

Recent changes in feeder-cattle prices have potential impacts for cow-calf and stocker producers this fall. Through July and August, prices for heavy feeder cattle have increased relative to lighter-weight feeder cattle. Several factors appear to be affecting feeder-cattle price relationships.

The August USDA Cattle on Feed report shows an Aug. 1 on-feed inventory of 10.165 million head, 101.6% of last year. July marketings were 99.3% of one year ago, while placements were 101.6% of last year. With two fewer business days this year compared to 2015, these numbers suggest a continued brisk pace of both placements and marketings. The desire to increase feedlot turnover means that feedlots continue to demonstrate a preference for heavy feeder cattle. Since placements began increasing in February, placements of feeders more than 700 pounds (lb.) have increased more than 11% year over year, while placements of cattle less than 600 lb. are down nearly 6% compared to the same six months last year.

All else being equal, feedlots would generally rather feed bigger, older feeder cattle. Especially with continued heavy discounts on deferred live-cattle futures, feedlots are less interested in buying lighter-weight feeders and taking the risk of owning them for a longer period of time.

For more information visit www.angus.media.com.

— Adapted from an article by Derrell Peel first published in Oklahoma State University Extension’s Cow-Calf Corner newsletter and reprinted with permission.

Renovation — New White Clover Variety Developed

The Samuel Roberts Noble Foundation and the University of Georgia–Athens (UGA) have developed a new white clover variety called Renovation. Researchers say it will help agricultural producers improve and maintain healthy, productive pastures.

The goal for the Noble-UGA forage breeding program was to develop new white clover (legume) varieties to help restore perennial grass pastures in the southern United States.

“Renovation was developed to extend the life of perennial grass pastures and improve forage quality,” says Mike Trammell, Noble Foundation plant breeder. “Its genetic makeup results from a southern clover variety bred with a large-leaf variety to produce excellent overall persistence and animal performance.”

Renovation is available for purchase through Smith Seed Services. For more information, please visit www.renovationclover.com.

— Adapted from a release from the Samuel Roberts Noble Foundation.

Angus in the West

In a recent newsletter published by the Nevada Cattlemen’s Association, it was interesting how ranchers have played an important role in the growth of the sage grouse population by some 63% in Nevada, where approximately 80% of all land is owned by the federal and/or state governments. These ranchers play an important part of rural communities by not only tending to their own livelihoods, but also to the rangeland that supports their herds and wildlife.

Across the West, roughly 22,000 ranchers steward approximately 250 million acres of federal land and 140 million acres of adjacent private land. These ranchers are true stewards of the land, and with the vitality of the rangeland at stake, they continue to make it better.

In addition, the fall bull sale season is fast approaching here in the West, and the following will offer some of the available programs from American Angus that may fit into the commercial producer’s management system including access to MaternalPlus^®, BRS and access to the Angus Beef Bulletin, among other useful tools.

For more information visit www.angus.media or contact the American Angus Association at 816-383-5100.

— Adapted from an Angus Beef Bulletin EXTRA article by Terry Cotton, Angus Media.

Time to Tighten the Belt

With cattle prices not where they were a year ago, it’s time as producers enter the fourth quarter of 2016 to manage costs and lock in profit margins for the years ahead.

“We are now in this neutral range where corn is in the $3 range, soybeans are back to $10 and beef is at $1.18,” says AgResource President Dan Basse. “As we look at the markets, we don’t want to be as bearish — but we see it as being limited also.”

Basse says he doesn’t see there being a lot of risk involved in the markets and anticipates beef prices rallying to $1.25 per hundredweight (cwt.) in the future.

“Producers at the moment can catch their breath, focus on costs and then be prepared to work with margin and lock in prices going forward,” he says.

For more information and to watch Basse’s interview, catch The Angus Report.

— Adapted from The Angus Report.

— Compiled by JD Rosman, Angus Media.

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