Livestock

Weekly Commodity Market Update

Brownfield’s Weekly Commodity update featuring former OSU Extension Ag Economist Ben Brown.

This Week’s Topics:

  • Market recap
  • Consumer sentiment at two-year high
  • Oilseed outlook
  • Managed money profit taking
  • Managing when to sell
  • Record December soybean crush
  • Reports to watch

This week Will and Ben discuss marketing crops around profit taking

Market recap (Changes on week as of Monday’s close):

  •  March 2024 corn down $0.02 at $4.45
  • December 2024 corn down $.06 $4.75
  • March 2024 soybeans down $.04 at $12.23
  • November 2024 soybeans down $.04 at $11.97
  • March soybean oil down 2.19 cents at 48.16 cents/lb
  • March soybean meal down $7.50 at $355.80/short ton
  • March 2024 wheat flat at $5.96
  • July 2024 wheat down $.07 at $6.12
  • March WTI Crude Oil up $2.02 at $74.67/barrel

Weekly Highlights 

  • The December National Oilseed Processors Report showed their members crushed a record 195.3 million bushels of soybeans in December- up from 189 in November and 177.5 million last December. Cumulative soybean crush is running 40 million bushels of last years pace with USDA expected an 88-million-bushel year over year increase.
  • The US economy continues to show resistance. The Home Builder Confidence Index reported a reading of 44 increased from 39 in December and analysist expectations of 39. This signal that while contracting its not contracting as fast. Lower mortgage rates boosted confidence.
  • Consumer sentiment jumped to the highest level since July 2021 reflecting optimism regarding slowing inflation and rising incomes.
  • The US labor market remains tight as jobless claims fall under 200,000 and lowest level in 16 months. Employers may be adding fewer workers but they are holding on to the ones they have and paying higher wages.
  • It was a fairly risk on week for US commodities. Open interest positions increased for Chicago wheat (5.7%), Corn (8.1%), soybeans (4.9%), soybean oil (5.6%), soybean meal (6.2%), and cotton (2.7%) while rough rice fell (2.1%).
  • Producers and merchants increased their futures and options positions of Chicago corn more than 25,000 contracts with managed money increasing their net short position 29,819 contracts. The managed money net short for corn is quickly reaching a resistance level close to the largest net short in 15 years.
  • Managed money for soybeans also increased the net short 45.5 thousand contracts.
  • US crude oil stocks excluding the strategic petroleum reserve were down 105 million gallons while gasoline stocks increased 125 million gallons on a slight week over week reduction in gasoline demand.
  • US ethanol production pulled back to 310 million gallons but well above the 296 million gallons last year. Ethanol stocks have built to a 10 year high. The cold weather will likely slow US ethanol production over the next several weeks. Higher natural gas prices and lower ethanol prices are cutting into ethanol plant margins.
  • Export sales were bullish for corn and wheat last week while neutral for beans and grain sorghum. Sales were higher week over week across the board.
  • Weekly grain and oilseed export inspections were rather neutral. Corn, soybeans, and grain sorghum were all down week over week, while total wheats were slightly higher.
  • Friday’s USDA Cattle on Feed as of January 1 report showed all cattle on feed at 102.1% of last year.

Winter Application of Manure in Ohio

– Glen Arnold, CCA, Field Specialist, Manure Nutrient Management

Most producers have had the needed dry weather this fall to get livestock manure applied to fields. However, a wetter than normal corn crop and full elevators, did delay corn harvest longer than normal in some areas. For livestock producers waiting on frozen ground to apply manure, here are some things to keep in mind. Frozen ground would be soil that you cannot inject the manureWinter Manure Application into or cannot conduct tillage within 24 hours to incorporate the manure.

Permitted farms are not allowed to apply manure in the winter unless it is an extreme emergency, and then movement to other suitable storage is usually the selected alternative. Several commercial manure applicators have established manure storage ponds in recent years to help address this issue.

 

 

 

Continue reading Winter Application of Manure in Ohio →

There’s Potential for Poisoning During Fall Grazing

– Jordan Penrose, Ohio State University Extension Agriculture and Natural Resources Educator, Gallia County (previously published in Farm & Dairy)

With fall fast approaching, it may be time to assess potential problems that could arise when livestock are grazing, such as trees and grasses. A good practice of walking or driving through your pastures will help you know what is growing in or around them.

Continue reading There’s Potential for Poisoning During Fall Grazing →

Poultry Litter Application

By: Glen Arnold, OSU Extension

Stockpiles of poultry litter can be seen in farm fields across Ohio. While common each year in wheat stubble fields, there are also stockpiles commonly found in soybean fields. Getting the poultry litter to the fields ahead of spreading makes time makes the whole process more efficient. Poultry litter is an excellent source of plant nutrients and readily available in most parts of the state. With fall harvest just around the corner these poultry litter piles will soon be spread across farm fields.

Poultry litter can be from laying hens, pullets, broilers, finished turkeys, turkey hens, or poults. Most of the poultry litter in the state comes from laying hens and turkey finishers. Typical nutrient ranges in poultry litter can be from 45 to 57 pounds of nitrogen, 45 to 70 pounds of P2O5, and 45 to 55 pounds of K2O per ton. The typical application rate is two tons per acre which fits nicely with the P2O5 needs of a two-year corn/soybean rotation.

Like all manures, the moisture content of the poultry litter greatly influences the amount of nutrients per ton. Handlers of poultry litter have manure analysis sheets indicating the nutrient content.

Poultry manure from permitted operations needs to follow the Ohio Department of Agriculture standards when being stockpiled prior to spreading.

These include:

– 500 feet from neighbors

– 100 feet from a public road

– 300 feet from streams, grassed waterways, wells, ponds, or tile inlets

– not on occasionally or frequently flooded soils

– stored for not more than six months

– not located on slopes greater than six percent

– located on soils that are deep to bedrock (greater than 40 inches to bedrock)

Farmers who want to apply the poultry litter delivered to their fields are required by Ohio law to have a fertilizer license, Certified Livestock Manager certificate, or be a Certified Crop Advisor.

What’s so Critical about Fall Cutting?

Amber Friedrichsen, Associate Editor, Hay and Forage Grower
(Previously published in Hay & Forage Grower: August 29, 2023)

The critical fall period for alfalfa has been said to start about six weeks before the first killing frost, which is roughly around the first week of September for most of the Midwest. This hard stop in harvest schedules is supposed to ensure plants store enough energy in their roots to survive the winter, but with improved alfalfa varieties, variable stand conditions, and warmer weather patterns, how critical can this period really be?

Despite heat indices recently reaching the triple digits in some parts of the Central U.S., temperatures will likely calm down as we flip the calendar from August to September. The sun is also setting noticeably earlier each day, and the combination of milder temperatures and shorter day lengths sends a signal to alfalfa to prepare for fall dormancy.

 

 

 

 

Continue reading What’s so Critical about Fall Cutting? →

Pricing profitably: Direct-to-consumer meat sales have the potential to increase farm revenue

By Brianna Gwirtz, OCJ field reporter
(Previously published online with Ohio’s Country Journal: August 27, 2023)

The input costs to farm have been continually rising for many years. The U.S. Department of Agriculture’s (USDA) February 2023 Farm Sector Income forecast projected total farm production expenses in 2023 at nearly $500 billion, up 4% from the prior year, but up $87 billion, or more than 28%, from 2020. For those raising livestock, looking outside of the typical commodity markets and focusing on direct-to-consumer meat sales may be an opportunity to increase revenue.

 

 

 

Continue reading Pricing profitably: Direct-to-consumer meat sales have the potential to increase farm revenue →

Mineral Supplementation on Pasture

– Ted Wiseman, OSU Extension, Perry County (originally published in Farm & Dairy)

Grazing livestock require minerals to promote growth, milk production and several metabolic functions. How do we know that our mineral program is adequate to meet the needs of our grazing livestock? In previous articles we have stressed the importance of analyzing hay samples for winter feeding. But how many of us have sampled our pastures for nutrient content? We know that magnesium in early spring is important to prevent grass tetany, but what about the rest of the year?

Continue reading Mineral Supplementation on Pasture →

Preharvest Intervals for Soybean Herbicides Applied Postemergence

Preharvest intervals indicate the amount of time that must elapse between the herbicide application and crop harvest. Failure to observe the preharvest interval may result in herbicide residue levels in the harvested portion of the crop in excess of established limits. Also, livestock grazing or foraging treated soybean is not allowed on the labels of many postemergence soybean herbicides. Table 1 contains information regarding preharvest intervals and grazing restrictions for a number of postemergence soybean herbicides.

Table 18 from the OSU Weed Control Guide shows the PHI and feeding restrictions for postemergence soybean herbicide applications.