Monday Memo
June 12, 2017
NCBA Hails Final Agreement That Clears Way For U.S. Beef's Return to China For First Time Since 2003

Craig Uden, president of the National Cattlemen's Beef Association (NCBA), today released the following statement in response to the U.S. Department of Agriculture's (USDA's) announcement that it has reached a final agreement with Chinese officials on a deal that will allow U.S. producers to begin beef exports to China for the first time since 2003.
  "NCBA commends the leadership of President Trump and our skilled negotiators who were able to restore U.S. beef access to China, something that has been a top priority for NCBA for 13 years. NCBA worked closely with USDA throughout the entire process. In recent years, China has become one of the largest import markets for beef, and these terms are a reflection of China's trust in the safety and quality of U.S. beef. We hope that by getting our foot in the door we can develop a long lasting and mutually beneficial relationship with China."
Click here to view the final details of the protocol that USDA announced today. 
Cattle Quick Thoughts
Another scandal in Brazil is sending waves through the global beef industry. JBS, a Brazilian-based company, is the largest meatpacking company in the world and recently admitted to bribing almost 2,000 politicians in Brazil for exchange for government subsidized financing. As a result, the holding company for JBS has agreed to pay $3.1 billion in penalties. Earlier this week, JBS agreed to sell its beef units in Argentina, Uruguay, and Paraguay for $300 million “to reduce its financial leverage.” JBS has since stated that its U.S. holdings are not for sale. It is still unclear what impact this and the food inspection bribery scandal (by multiple companies in Brazil) will have on beef exports from Brazil, the second largest beef exporting country. However, any impact that occurs will likely be negative. There may be opportunities for U.S. beef exports to gain share in some global markets due to these disruptions.
Source: Josh Maples, MSU Extension
Feedlot Numbers Grow with Strong April Placements

Stronger than expected April placements pushed the May 1 feedlot inventories to 102 percent of year ago levels. April placements were 111 percent of last year, above the average trade guess though not outside the range of expectations.  April marketings were 102.7 percent of last year, also above expectations and a continuation of strong feedlot marketings. 
Slowly growing feedlot inventories reflect the increase in feeder supplies resulting from three years of herd expansion.  The May 1 on-feed inventory is the highest monthly cattle on feed total since February of 2013 and the highest May total since 2012.  A combination of short and long-run regional factors and trends has resulted in some interesting comparisons of cattle feeding in the major feedlot states.  The data comparisons below are based on the current cattle on feed data series that dates back to 1992.
Texas has been the largest cattle feeding state since the early 1970s, but has trended down in recent years.  Texas feedlot inventories have not grown very fast in recent months with the May 1 inventory of 2.46 million head unchanged from last month and 1.2 percent lower than last year.  In fact, the current inventory is only 2.1 percent above the recent low of 2.41 million head in May, 2015, a low that goes back to 1997.  Current Texas feedlot numbers are 20.1 percent lower than the all-time monthly inventory peak of 3.08 million head in February/March of 2001 and 18 percent lower than the more recent peak of 3.0 million head on-feed in November 2011.
For more click here.
Death Tax Survey
The Death Tax is in direct conflict with the desire to preserve and protect our nation’s family-owned farms and ranches. This survey has been designed to evaluate the impact of the death tax on the U.S. livestock industry. Please know that should you choose to participate in this survey, your responses will be kept strictly confidential.
To complete the survey please click here.
Brown Loam Branch Experiment Station Field Day 
On June 16 the Brown Loam Branch experiment Station will host a Beef Cattle - Herd Health Field Day. Topics covered will include: Grazing Management, Cattle Market Valuing, Bull EPDs,UAV Technology in Beef Production, Veterinary Feed Directive Regulations, Herd Health BMPs, and much more. Lunch will be sponsored by Gaddis McLaurin & Nutrena.
To register please call  (601) 857-5952. 

Making Tracks 2017
Thirty-seven MJCA members are in Starkville on Mississippi State's Campus to take part in "Making Tracks" Wax Junior Leadership Conference. The camp is starting off with Dr. Jackie Courson teaching the attendees more about an auction. The campers will learn about animal health, beef quality assurance, animal i.d., marketing, and much more. 
Cattle Market Notes
Week Ending June 9, 2017
Dr. Josh Maples

Cash Cattle:
Cash traded fed cattle prices were mixed through Thursday. Live cattle were up $1.12 to an average of $135.14, while dressed steers were up $4.20 to an average of $219.34.
Feeder cash prices were sharply higher this week in Mississippi. Mississippi feeder steers weighing 450-500 pounds were up $8 to an average of $167.50 while 750-800 pound steers were up $8.50 to $140. Average feeder prices this week in Oklahoma City were 181.69 for 500-550 pound steers and 160.45 for 750-800 pound steers. OKC stockyards were closed last week.

Cattle futures prices were mostly lower this week. June live cattle were up 35 cents to $131.35 while August live cattle were down $2.15 to $124.18. August feeder cattle were $4.93 to $154.50 while September feeder futures were down $4.55 on the week to $154. Corn futures prices were higher this week with July and September up 15 and 16 cents to $3.88 and $3.95, respectively.


Boxed beef values were up this week. Choice boxes averaged $250.22, up $4.82 from a week ago. Select boxes averaged $219.84, up $1.61 from last week. The choice-select spread grew to $30.38, up $3.21 from last week.


15 - Lee CCA
16 - Brown Loam Beef Cattle Field Day, Raymond

Total Recipe Time: 35 to 40 minutes
Makes 6 servings

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