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July 2010 - Tennessee Farm Bureau News
Fruits of the Backyard Field Day has something for everyone
Beef Cattle Outlook By Emmit L. Rawls UT Professor Agricultural Economics
Markets continue being rattled Markets continue to be rattled by “outside” markets and demand issues that we thought were improving. Since early May fed cattle prices have declined from $101 per hundred to the low $90s. A normal decline is about $12 from the spring high normally in March or April to the summer low which usually occurs in July. Fed cattle futures, which along with corn drive feeder cattle prices, have also declined, but have been offset to some extent by a declining corn market. An excellent planting season has created expectations of a large corn crop which has weakened futures and nearby cash prices. USDA has raised the amount of corn used for ethanol production and the amount of ethanol used in gasoline could be raised later this year. These factors leave some element of uncertainty as to what feed cost will be. There has been a modest decline in stocker calf prices and heavier feeder cattle prices. Historically, we see a decline in stocker cattle prices as grass fever subsides. Yearling cattle purchased in mid June will be marketed in the fall, and current prices place their breakeven coming out in the mid $90s, well above current October futures. In mid-June prices for 700 to 800 pound steers averaged $105 compared to $103 in May and $91 a year ago. Yearling cattle supplies could be tighter than usual late summer to early fall as many calves went to market at the very strong prices we had this spring. We do not know how many left the state, but grass availability across the country has been the best in years. The decline in wholesale cutout
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values which drive fed cattle prices have experienced a free fall since early May. Through mid-June there had been 18 consecutive days in which beef packers had been forced to take lower prices for boxed beef. Retailers and food service buyers were shifting to more moderate priced meat proteins to attract customers. Beef prices normally bottom in July as hot weather drives more folks inside and there is less cookout activity. Fed cattle prices have improved 60 to 70 percent of the time from July into August and September. I expect the feeder market to continue to be somewhat volatile as commodity markets react to European and weather factors. Even though feeder prices have come off their spring highs, prices are still high relative to the past two years. Livestock Risk Protection insurance is one means to protect from lower prices due to unknown events causing prices to decline. It offers downside protection, while leaving the opportunity for higher prices. Fed cattle are expected to strengthen this fall back into the $90s. Unless corn prices rise sharply, feeder prices could decline less than the normal fall bottom in the October - November period. Some areas of the state are beginning to become dry, so remember that calves must be in a gaining condition to hold the money together if prices are falling. Remember to take advantage of opportunities to market your calves in larger groups through graded sales or similar opportunities through your local market. t
The third annual Fruits of the Backyard Field Day was in mid-June at the Middle Tennessee AgResearch and Education Center in Spring Hill. Despite the heat, several hundred were in attendance. The event serves people from not only Middle Tennessee but from all over the state and in fact, some came from as far away as Colorado. Three seminars covered a variety of issues facing both homeowners and producers. There were vendors there to provide education, valuable information on their products, how they can be used to help and different techniques in which to use their products. The program was put together to help make your backyard a more productive and enjoyable place to spend time with family and friends. Center director, Kevin Thompson says, “With the changing economy we are seeing the urban sector that are very interested in producing for profit, fruits from their back yard. This field day really focuses on that aspect.” The topics discussed were Grapes, Blueberries and Other Fruit Crops – Edible Landscaping at its Best! by Dr. David Lockwood; Gardening in Small
Spaces, by Wendel Smith and Fire Ants and Fire Ant Control in the Backyard, by Dr. Karen Vail. There was also plenty of time for attendees to ask questions and talk one on one with these field experts. Dr. David Lockwood comments, “For those who haven’t grown fruits before there are crops that are much easier to grow and their chances of success are much higher, it’s one of those you have to learn to walk before you can run situations, the ease and success of growing blueberries will hopefully build enthusiasm to try growing something a little more difficult like bunch grapes.” Dr. David Lockwood is the professor of Plant Sciences at UT and he encourages people to try growing some of these backyard fruits and thinks you might be surprised. “We want to give people an idea of what they can do and expect a reasonable return on the effort and the investment.” This event is open to the public and appeals to all ages so make plans to attend next year and bring a friend or backyard neighbor. t Colby Paul is the summer intern for TFBF Communications Department
2010 UT Livestock Judging Team enjoys very productive spring
The 2010 Junior Team - From left: Amanda Carlile (Putnam County), Heslie Powell (Sequatchie County), Lee Rose (Williamson County), Evan Bartley (Bedford County), Levi Holt (Overton County), Richard Cutshaw (Greene County) and Brooke Carter (McMinn County). They are coached by David Roper and assistant coach Will Mayfield.
The 2010 UT Livestock Judging team recently completed a busy yet competitive spring. The team began their collegiate judging careers shortly after the completion of finals in December with a trip to Yukon, Okla. to participate in the Express Ranches Winter Workout. The team remained in Texas and Oklahoma visiting industry leading operations in preparation for the Exposure Cattle Judging Contest in Stillwater, Okla. The team finished 9th out of 21 teams, with Levi Holt and Heslie Powell finishing in the top 20. The second contest was located at the historic Southwest Livestock Show and Rodeo in Ft. Worth, Texas. They had a challenging day but survived their first large contest that consisted of 12 classes and 8 sets of reasons. A week later the team traveled to the Dixie National Beef Judging Contest in
Jackson, Miss. They bounced back and performed well, netting a Top 5 Steer Judging, with Evan Bartley finishing 8th high in the Steer Division. The next stop was on home soil at the 2010 UTSLA Roundup in which they finished first. Additionally, 6 team members finished in the top 10 with Evan Bartley 1st, Levi Holt 3rd and Heslie Powell 5th. Over spring break, the team headed to Texas to compete at the Houston Livestock Show and Rodeo. Amanda Carlile was 14th high in placing. They finished the spring season by competing in the Purdue Block and Bridle Spring Contest in West Lafayette, Ind. The team received 5th overall honors to round out the season. The team will have the summer off before returning to school the week before classes start to begin preparations for the fall. t