The Environmental Protection Agency proposes to reduce the levels of renewable fuels for blending into gasoline and diesel next year. According to the proposal, "While this range represents a reduction in comparison to the statutory volumes for 2014, it nonetheless represents an increase relative to projected 2013 corn-ethanol consumption of about 12.3 billion gal…”
Estimated cattle feeding returns finally started turning positive in September after 29 consecutive months of losses. But, analysts with the Livestock Marketing Information Center say losses could resurface as early as next month because of the high prices feedlots must pay for calves and feeder cattle.
Judging by chatter and heifer prices at auction, more producers are at least contemplating herd expansion. But, looking at the mix of heifers on feed, Nevil Speer at Western Kentucky University says, "Producers don’t appear to be settling into the commitment associated with heifer development.” He adds that could change as marketing season continues.
WASDE pegs this year’s corn crop at a record-large 14.0 billion bu., 1% more than the previous forecast. That would make the crop a staggering 30% larger than last year. The season-average corn price was lowered 30¢ at both ends of the range to $4.10-$4.90/bu.
Steer and heifer calves sold mostly steady this week with instances of as much as $5/cwt. higher. The advance was mostly in the Southeast and the Southern Plains winter wheat region, according to the Agricultural Marketing Service (AMS) Friday.
The export value per head of fed slaughter for beef in August averaged $253.87, up $46.16 from last year. Beef exports accounted for 11% of muscle cuts and 13.6% of total production, both up roughly 1 percentage point.
Analysts with the Agricultural Marketing Service explained Friday that fed cattle prices shattered the previous all-time record high achieved in May by trading at $131-$134/cwt. and at mostly $208 on a dressed basis.
“Though the high absolute price levels for stocker calves is scary for buyers and their lenders, the combination of high price levels and relatively little price rollback means that the value of putting weight on feeder cattle remains very high."
The disconnect between farmers and consumers makes it easy for folks with an agenda to concoct messages they know will have the most effective emotional impact, themselves knowing the fiction and intent underlying such messages.