Thursday, March 7, 2019

Thursday Midday Livestock Market Summary - Feeder Cattle Surge Higher

General Comments
LIVE CATTLE: Front-month April cannot break away from the $129 area as it seems well-priced with underlying cash. There has yet to be any significant business done as buyers and sellers continue to follow the usual pattern of going down to the wire. Bids have been lowered to $125 as buyers set their bids based on yesterday's market movement. They may need to rethink that if business is to be done this week.
Boxed beef cut-outs are mixed at midday with choice $0.68 higher and select up $0.21. Movement is rather light at 65 loads reported (28 loads of choice cuts, 15 loads of select cuts, 7 loads of trimmings, and 15 loads of ground beef).
FEEDER CATTLE:
Feed cattle futures have led the charge as short-covering and bottom-picking is running the market. Contracts are taking back the losses from the previous two days.
LEAN HOGS:
April futures are exhibiting good strength diverging substantially from later months. Spread trading has the market moving in both directions. A good export sales report last week with showed good sales with Mexico the largest destination.
The weighted average price is $0.49 lower at $35.97 with a range of $35.25 to $36.85 on 3,269 head reported sold.
The National Morning Pork report showed 174 loads of pork cuts and 25 loads of trim/process pork. The lean hog index for three fourths is $51.94 ,down 0.01 with a projected two-day index of $51.85, down 0.09.

Thursday Morning Livestock Market Summary - Mixed Trading Activity Expected

GENERAL COMMENTS:
Cash business is doing what it usually does, and that is wait until late in the week before deals are inked. Bids and offers remain mostly $2 apart. The drop in futures since the end of last week could make sellers a bit more willing to take care of business, leaving cash prices mostly steady to a little lower. The inability of the market to rebound so far this week may keep pressure on prices. Supply of cattle is expected to be higher in the second quarter of the year, which may make it difficult to push to new highs.
Lean hog futures have taken a beating in the past months, but after the spike bottom on Feb. 20 futures have been generally sideways. Further futures weakness may develop early in the trading session, but price support should be found under this market. The U.S. is stepping up to prevent African swine fever from entering the country. Cutout values were higher Wednesday, but higher prices did not underpin the market. Cash hogs are expected steady to 50 cents lower.
BULL SIDEBEAR SIDE
1)Traders may step back into the market, taking advantage of the dip in price to positions themselves for the Cattle on Feed report.1)
The recent decline of cattle futures could make buyers less aggressive, paying no more than steady prices with last week.
2)
The discount of June to April futures should keep traders interested in holding and increasing long positions as demand should pick up through the second quarter.
2)The Cattle on Feed report could show plentiful supply through the second quarter, keeping buyers confident supply will be readily available.
3)The potential for a resolution of the tariff war could be a catalyst to propel futures higher as pork exports to China would increase.3)January pork production increased 4% from the previous year with weights up 1% according the National Agricultural Statistics Service report. The number of hogs slaughtered were 3% higher.
4)
The USDA stepping up to prevent the spread of swine fever to the country makes U.S. the main country to go to for pork supply, thereby increasing demand substantially.
4)The January Cold Storage report on Thursday afternoon could show a substantial inventory of pork due to slower exports and strong slaughter activity.


#completecalfcare

Wednesday, March 6, 2019

Maintain Rumen Function and Nutrient Intake for Re-breeding

Early Spring Nutritional Requirements of the Breeding Herd
Calving has progressed in many areas as early spring approaches bringing a new set of challenges to the breeding herd. Fluctuating temperatures, wet snow and mud will create extra demands on cow nutrition and health before ample grazing conditions begin. During the early spring, nutritional support will be necessary to offset the stress of wet and cold conditions the breeding herd will be facing.

Lactation, Re-breeding and Development of Fetal Tissues
Since re-breeding will begin in the March-April period, focus on cow nutrition should be a primary focus to maintain adequate body condition, good milk production and strong cycling. Feeding the cow to support not only her body condition but addressing the nutrient needs of the fetal calf especially during the first trimester of gestation is critical to optimum calf development.

Good Rumen Function Helps
Excell™ maintains good rumen function by supporting the microbial populations in the digestive system of the rumen and intestine for efficient nutrient digestion and adsorption needed for lactation, body condition and animal reproduction. When rumen function is optimized, microbial protein and volatile fatty acid production can better support the major nutritional needs of the cow  when she needs them for good lactation and strong estrus and breeding.

Optimum rumen function will help:
  • Support the extra energy needs during the wet and cold conditions common in early spring
  • Provide adequate cow nutrition for milk production and maintenance of body condition
  • Get cows cycling early so they re-breed on their first cycle
  • Provide the right nutrition during the first 30-60 days of fetal development when most fetal tissue develops
Nutrient Needs During Cold, Windy and Wet Weather
Early spring creates tremendous stress on cows and calves in cold, wet and muddy conditions. Most nutritional requirements on beef cows are based on mild 30 to 60-degree F temperatures but the requirements increase substantially in cold, wet and windy conditions. The University of Oklahoma beef department has developed a simple way to calculate the additional feed requirements in adverse conditions:
  • Cold: Add 1% additional energy for every degree F the wind chill is below 32-degree F.
  • Wind: Add 2% additional energy for every degree F wind chill is below 59-degree F.
  • Cold, windy and wet: Add both cold and windy calculations together.
Muddy Conditions can Increase Energy Requirements by 10 Percent
Cattle dealing with muddy conditions after winter snow melt usually results in performance and health issues. Mud can depress feed intake by 15 percent versus what it would be under the same conditions without mud.

Mud and manure is notorious for harboring disease-causing microorganisms which grow rapidly in the warm spring weather. These pathogens can cause many issues in both cows and calves and must be monitored closely and treated with a targeted oral paste for the pathogen.

Foot rot is a common issue in wet, spring weather. The bacteria can live up to 10 months in unfrozen ground or manure. Foot rot is not the only microbial threat.  Mud is also a good home for organisms that cause scours such as E. coli, Clostridium perfringens, salmonella, and the protozoa, cryptosporidium and coccidia.

The Nutritional Program During Early Spring
The forage program makes up the major portion of the feeding program and greatly influences the performance parameters of the beef herd. A good nutritional program that addresses each phase of production and environmental weather condition is very important.

Forage testing will take the guess work out of forage quality and a balanced supplementation program can be formulated to provide the missing nutrients needed during these demanding periods.

The additional nutritional demand of cold and wet spring weather can depress dry matter intake during this period of cycling and re-breeding when the cow’s nutritional requirement is high. This depression can seriously affect body condition, re-breeding and fetal development during the first 60 days of gestation.

Considerable research has shown that adequate nutrition of the fetus at the right time during pregnancy significantly impacts overall health and immunity of the calf. This concept of “fetal programming” is becoming a major management tool in cow herd management.

During the first trimester, implantation, placental growth, organ development and initial myogenesis (the formation of muscle tissue) begins. The research suggests calves will not perform to genetic expectations if nutrients are deficient at these times.

Energy
Energy is probably the most important nutritional element in beef cattle production since it is the fuel for growth and development, maintenance of body condition and metabolic functions of the animal. Cows need energy for milk production, maintaining body heat in cold weather as well as rebreeding and developing the fetal calf tissues.

Protein
Protein is the second limiting nutrient in most beef cow rations and is the principal building block of most tissues. Without adequate amounts of protein in the diet, rumen function can be depressed, feed intake can drop, and overall digestive efficiency declines.

Vitamins, Minerals and Reproduction
Feeding the proper level of vitamins and minerals is essential for the growth, health and reproduction of beef cows and calves. Since vitamins and minerals are essential components for many specific metabolic functions, deficiencies can cause significant issues in growth, reproduction and health areas. 

A vitamin, mineral supplementation program which provides the correct balance of nutrients with the forage program is the best bet for meeting the vitamin, mineral requirements of the cow herd.

Upgrade Your Nutritional Program with Excell™
Research shows RumaCell will help optimize rumen function and efficiency helping the cow get more nutrients out of her feed. This is especially important during times of high nutrient demand such as the last 90 days of gestation, re-breeding and lactation.

#completeherdhealth

Wednesday Closing Livestock Market Summary - Feeder Cattle Pressure Spills Over to Live Cattle

GENERAL COMMENTS: Moderate pressure continued to develop in most livestock trade. Summer feeder cattle contracts led the market lower with triple-digit losses. Limited volume was seen in most contracts, allowing for general market erosion midweek. Cash cattle activity remained generally sluggish Wednesday, and is likely to remain untraded until late in the week. A few token bids developed at $205 per cwt in the North, while asking prices are becoming slightly more available as the day progresses. Cattle are priced at $130 live and $207 and higher dressed. The National Daily Direct afternoon hog report was $0.33 higher ($41.50-$46, weighted average $44.89) on 10,947 head sold. Corn futures were lower in light activity with May down 3 cents per bushel. Dow Jones Index is 100 points lower with the Nasdaq down 60 points.
LIVE CATTLE: Nearby live cattle contracts backed away from early support. Futures settled mixed, $0.45 lower to $0.07 higher. Limited support was seen most of the session as traders continued to focus on rebuilding buyer activity following early week losses. But the April contract slipped back below $129 per cwt in late-day trade as traders focused on the strong pressure in feeder cattle, as well as weakness in most other markets. Limited volume across the complex left little incentive for traders to make significant changes, allowing most contracts to hover within a narrow trading range. Beef cut-outs: higher, up $0.58 (select, $218.37) to up $0.89 (choice, $224.93) with light demand and light offerings, 133 loads (70 loads of choice cuts, 16 loads of select cuts, 4 load of trimmings, 43 loads of coarse grinds).
THURSDAY'S CASH CATTLE CALL: Steady. Despite token bids developing late Wednesday, little direction is still seen in cash cattle markets. This is expected to push most trade off until late in the week, potentially after the Cattle on Feed report Friday afternoon.
FEEDER CATTLE: Deferred feeder cattle contracts were under strong pressure Wednesday. Futures closed $0.22 to $1.05 lower. Additional follow-through pressure quickly stepped into the feeder cattle market, adding more uncertainty. Summer contracts continue to erode, breaking through support levels set in February. The lack of support comes as follow-through pressure in great trade is limiting production cost concerns. Late-summer contracts were under the most pressure, falling $1.05 per cwt, setting a weaker tone for the entire complex. CME cash feeder index for 3/5 is $139.59, down $0.04.
LEAN HOGS: Moderate pressure developed in lean hog trade midweek. Futures settled mixed, $0.82 lower to $0.02 higher. The April contract led the complex lower, falling 82 cents per cwt, on a lack of buyer interest. Even though the front-month futures contract remains nearly $2 per cwt under initial resistance set in mid-February, the still-weak fundamental outlook has continued to limit buyer interest. USDA also announced that it would intensify efforts to prevent African swine fever from entering the U.S. This causes some concern for the hog market, but the main focus remains on the abundant supply of market-ready hogs available to packers. Pork cutouts shifted higher on triple-digit gains in picnic, rib and belly cuts. Pork cutout values added $0.47 per cwt, moving to $63.06 per cwt on 302 loads. CME cash lean index for 3/4 is $51.94, up $0.01. DTN Projected lean index for 3/5 $51.85, down $0.09.
THURSDAY'S CASH HOG CALL: Steady to 50 cents lower. Light price pressure is expected to redevelop Thursday morning following active buyer interest early in the week as processors remain focused on ample market-ready supplies. Thursday slaughter is expected at 477,000 head. Saturday runs are expected near 189,000 head.

#completecalfcare