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Theses six states account for 62% of national milk production. (Artwork: Lindsey Pound Source: USDA)Theses six states account for 62% of national milk production. (Artwork: Lindsey Pound Source: USDA)

Apr 28

TSTA Weekly Update, 04/28/2022

  • Written by NewsAdminA Editor
  • Category Cattle
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Weekly Update from the Texas Seed Trade Association
 
Member News
Registration is officially open for ASTA’s new Leadership Summit, June 25-29 in Indianapolis! Make plans now to send your team to a professional development, advocacy and training opportunity that will benefit your company and your industry for years to come.
For more information, including the latest schedule of events, visit the conference webpage.
 
In an effort to update and maintain our membership records we request you take a few moments and fill out the very brief info request at the following link.
 
 
The link is secure and the information will be used internally by the Texas Seed Trade Association and never shared without your permission. This request is on behalf of your association's board of directors and officers and we greatly appreciate your cooperation. Thank you!
 
4/28/22 - If you have not updated your information please take a moment and do so now. We appreciate it! We continue to update this database and need your input!
 
If you have not paid your share of land rent, and other services, for the winter growouts please reimburse the association at your earliest convenience. Thank you! Should you need us to reissue an invoice please let us know.
 
As a result of conversations among the Texas State Seed & Plant Board membership this morning there are likely to be requests for re-certification of whet seed. The Texas Wheat Producers have communicated with the board their concern over likely shortages of quality certified wheat seed due to on-going drought conditions in Texas and on the High Plains/Great Plains. No action was taken at this morning's meeting but Chairman David Baltensperger discussed that provisions for re-certification may be deliberated at the next regularly-scheduled board meeting. TSTA staff was requested to communicate a heads-up to our members who provide certified wheat seed. TSTA staff has been in contact with the leadership of the Texas Wheat Producers and have assured them our mwwe will do all that is possible to ensure quality certified wheat seed to their growers.
 
 
News Bits
 
Cool, wet weather in some key U.S. growing areas continues to impact corn and soybean planting.
 
The USDA says 7% of U.S. corn is planted as of Sunday, compared to the five-year average of 15%, and 2% has emerged, compared to 3% on average.
 
3% of soybeans are planted, compared to 5% normally in late April.
 
27% of U.S. winter wheat is in good to excellent condition, 3% lower than last week largely due to drought conditions in parts of the Plains, with 11% of the crop headed, compared to the usual rate of 19%.
 
13% of spring wheat is planted, compared to 15% on average, with 2% emerged, compared to the typical pace of 4%, with cold temperatures and snow a factor in portions of the northern U.S. Plains.
 
12% of cotton is planted, compared to 11% on average, mainly due to the faster than normal rate in California.
 
Weather in the Delta is delaying rice planting, with activity at 26% complete, compared to the five-year average of 47%, and 19% of the crop has emerged, compared to usual pace of 28%.
 
The USDA's next set of supply, demand, and production numbers is out May 12th.
 
CME Group announced some price limits for grains and oilseeds would be reset starting May 1 for the trade date of May 2, 2022. This is part of the usual semi-annual review of limit resets that occurs on May 1 and Nov. 1.
 
Daily corn limits will change from 35 cents per bu. to 50 cents, with the new expanded limit moving to 75 cents.
 
Soybean future limits will increase to $1.15, up from 90 cents with a $1.75 expanded limit.
 
The daily limit for SRW and HRW wheat futures will drop 15 cents from the current level to 70 cents with expanded limits of $1.05.
 
The soyoil limit would increase from 40 cents per pound to 50 cents with a 75-cent per pound expanded limit.
 
Soymeal futures will increase from $25 per ton to $30 per ton with a $45-per-ton expanded limit.
 
Beginning in February 2022, already elevated global wheat prices surged in the wake of the conflict between Russia and Ukraine, who together accounted for 28 percent of all wheat exports in marketing year 2020/21. Throughout the current marketing year (2021/22), tight supplies have been forecast for key exporting countries including Argentina, Australia, Canada, the European Union, Kazakhstan, Russia, Ukraine, and the United States. Collectively for these countries, ending stocks are projected at the lowest level since the 2013/14 marketing year.
 
For most of the current marketing year, tight supplies have supported relatively high global wheat prices. Those prices have been driven higher as commodity markets reflect uncertainty about not only the ability of Russia and Ukraine to continue exporting in coming months, but also the implications of the conflict on Ukraine's spring planting which typically begins in March.
 
TEXAS IS NOW THE THIRD LARGEST DAIRY STATE, PASSES IDAHO
By Karen Bohnert, AgWeb.com
 
Theses six states account for 62% of national milk production. (Artwork: Lindsey Pound Source: USDA)
 
Texas milk production growth has steadily rose over the last two decades. The latest USDA March 2022 Milk Production report shows the Lone Star State climbed 6.7%, which helped them push past Idaho, to now rank No. 3 for milk production.
 
According to Juan Piñeiro, Assistant Professor and Extension Dairy Specialist with Texas A&M, Texas's milk production has increased an impressive 190%, going from 5.1 billion lb. to 14.8 billion lb. from 2001 to 2020.
 
The expansion of milk processing capacity and new plant construction in the Panhandle has spurred the increase in both cow numbers and production that Texas has seen.
 
A privately-owned maker of Mexican-style cheese, Cacique LLC, is scheduled to begin operation of a processing facility in Amarillo this fall. Just 50 miles north, in Dumas, another plant is also under construction. A new Leprino mozzarella cheese and dairy ingredients plant is scheduled to break ground in Lubbock this summer, with anticipated completion in two phases by early 2026.
 
Additionally, northeast of the Panhandle, Hilmar Cheese Company is building a cheese and whey protein processing plant that is expected to be fully operational in 2024 in Dodge City, Kan.
 
"Some of the milk from the Texas panhandle will be diverted towards that plant," Piñeiro says.
 
To view the complete report, click here.
 
CATTLE INDUSTRY'S OPPOSITION TO GOVERNMENT MANDATE AMPLIFIED THROUGH SENATE HEARING
National Cattlemen's Beef Association (NCBA) reports:
 
Washington - The Senate Committee on Agriculture, Nutrition, and Forestry today held a hearing to discuss transparency and oversight within cattle marketing, specifically the Cattle Price Discovery and Transparency Act (S.4030) and additional oversight through the Office of the Special Investigator (S.3870). The hearing has been proceeded by months of debate over the need for increased transparency in cattle marketing, and today's conversation highlighted the vehement opposition to government mandates by a majority of U.S. cattle producers.
 
"The majority of cattle producers have made it clear that one-size-fits-all solutions, such as the government mandate on cattle sales included in the Cattle Price Discovery and Transparency Act, is not the solution the industry is looking for," said NCBA Vice President of Government Affairs Ethan Lane. "What is being proposed right now concentrates on what works for one region, it simply doesn't work for the rest of the country."
 
Kansas Livestock Association and NCBA member Shawn Tiffany testified in opposition to a government mandate as it could potentially result in fewer marketing opportunities and less incentive for producers to invest in genetics and innovative production techniques that lead to higher-quality beef.
 
"Every producer wants fair market value for the animals we raise and produce and many of us achieve that true value through value-based alternative marketing arrangements. Accordingly, I do not support a government mandate, of any kind," said Tiffany. "Regardless of how well intentioned the concept of helping producers obtain fair market value for their animals, the end result will be fewer marketing options for U.S. producers."
 
As the trusted leaders and definitive voice of the U.S. cattle and beef industry, NCBA stands committed to turning the focus to solutions with broad industry support, such as a cattle contract library, 14-day delivery, expedited carcass weight reporting, daily formula base price reporting, and incentives for expansion of regional processing capacity.
 
Editor's Note: We pass this along because the seed industry is currently under a very similar "federal review" (investigation) as the cattle business just underwent. In past Weekly Updates we urged caution for cattle groups who appeared thankful and supportive of the Biden administration's willingness to investigate and "fix" their problems. We await a recent good example of how government can do virtually anything "better" or more efficiently than industry. Cattle prices today are at a seven year high.
 
OKLAHOMA STATE LIVESTOCK SPECIALIST SAYS SIGNIFICANT HERD LIQUIDATION INEVITABLE THIS YEAR
Source: Oklahoma Farm Report radio network
 
Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Mark Johnson.
 
Today, Dr. Peel talks about how the drought is impacting cattle markets.
 
"The latest Cattle on Feed report showed a record April feedlot inventory of 12.1 million head, up 1.7 percent year over year. The quarterly inventory of steers on feed was up 1.8 percent year over year while the inventory of heifers on feed was up 1.7 percent over one year ago. The total inventory included 62.3 percent steers and 37.7 percent heifers.
 
"The current level of heifers on feed does not suggest heifer retention for herd expansion. For example, from 2014-2016 in the last herd expansion, the average level of heifers on feed was 33.6 percent.
 
"Beef cow slaughter for the year to date is up 17.5 percent year over year. This combined with the large number of heifers in feedlots and the fact that heifer slaughter is up 2.0 percent year over year thus far in 2022 suggests that female numbers are being pulled down even before the worst drought impacts are felt.
 
"Perhaps the ongoing drought, carried over from 2021 for many producers, combined with strong feeder cattle and cull cow prices is prompting early adjustments in herds.
 
"At the current pace of cow slaughter, the beef cow herd could decrease up to four percent year over year in 2022. This would be the largest yearly decrease in the beef cow inventory since the 1980s.
 
"The pace of cow slaughter may slow in the second half of the year but is expected to remain strong in the second quarter and significant herd liquidation seems inevitable this year.
 
Editor's Note: Drought, feed prices, and transportation issues have created a perfect storm exacerbated by runaway inflation reducing demand for "expensive" beef; the result of which is we have too many cows. Maybe there's a government program that can fix this - see above article. This will impact the seed industry as a measurably large portion of our seed plants food crops for cattle that may be a bit less necessary even after the drought abates.
 
 
Texas Seed Trade Association | www.texasseedtrade.com
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The articles, views, and opinions expressed in the Weekly Update do not necessarily reflect the policies of the Texas Seed Trade Association or the opinions of its members.
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