Cattle Market Caucus
Six major agriculture groups want action and discussion on the state of cattle markets. With a growing spread of packer margins and producer prices, the group of organizations want to improve cattle transparency. The group includes the American Farm Bureau, the National Farmers Union, and the National Cattlemen’s Beef Association.
Farm Bureau President Zippy Duvall calls the meeting an unprecedented event. He says they talked about three major areas of concern: packer capacity and concentration, price transparency and discovery and market oversight. He says the Packers and Stockyards Act needs to be enforced. Ultimately he hopes for more talks..
“We want to continue the dialogue to pursue a fair and transparent livestock marketing system. And, we also, as individual groups with members that set policy, we want to make sure that we take our discussion back to our respective organizations so that we can continue to work for our farmers and ranchers across America,” Duvall said.
Land Price Peak
Average Land prices for high quality land around the nation is reaching peak prices. According to the Farmers National Company, June land estimates have jumped by a lot in the last six months. It gives examples of Illinois reaching $12,300 per acre versus $12,500 from 2014 at the top of the market.
Likewise Ohio is only $150 off the highs at S8,000 per acre. Farmers National Company says the estimates are intended to show trends in land sales, not reflecting individual sales.
A Look at the Markets
Some red in the midweek – analyst Bryan Doherty has more”
“We’re seeing weakness, so we’re seeing another round of commodity liquidation, the energy markets are down sharply almost three dollars a barrel and you’re seeing this after a pretty good drop in the dollar yesterday so not a good sign. The market seems to be focused on planting progress, which is ahead of schedule, rain on the radar good for production, and really a forecast that just is not threatening at all, you’ve got the entire midwest with an abundance of above average rainfall forecast. So we’re seeing mixed to weaker in the cattle complex today and the back months are holding firm in a nice longer term uptrend, they’re off a few dollars from their high. So the long term picture probably looks supportive with these higher grain prices we’re going to see weights inch down. You’re seeing feeders up today on cheaper corn, so a bit of a bull run on feeders. And over in hogs, 25-50 lower continue to consolidate around the 111-112 mark in the July and now that June is the front month allow 110 to 110.50.”
Heat Stress Effect
Heat stress in sows.. could cause health complications for piglets, according to the US Department of Agriculture’s Agricultural Research Service. Piglets born to heat-stressed mothers may have health complications and diminished performance later on in life.
The ARS says this works to hyper sensitize the piglets immune system, making them more susceptible to heat by not sweating as much. Its research shows pigs with heat stress during pregnancy can bring on complications for piglets like inefficient feed use, growth rates and production.