Corn prices going up while cattle prices fall
The grass is getting green and the rain we’ve had lately is sure making things better on the farms across Warren County.
Last week’s announcement of an eight percent drop in the number of corn acres to be planted this spring had a predictable effect on the cattle market. Corn went over $6 per bushel for fall delivery and almost made it to $6 on the cash market. Feeder steers and bulls on Tennessee auctions were called $5 to $10 lower with feeder heifers $4 to $8 lower. The lower fed and feeder futures thru Wednesday reduced bids on feeder and stocker cattle, despite reduced receipts at auctions.
While grass is green, where it survived 2007 and the winter, it is not long enough to support significant grazing. Some cows are still moving to market due to lack of forage/hay. Once the remaining grass fever declines, feeder prices will follow what is happening in the corn market. Listed in the attached graphic are the prices from last weeks’ feeder calf sale here at the McMinnville barn. Just over 1,400 head went through the ring Wednesday night.
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WHEAT CROP PROMISING
According to the TN AG Statistics Service, wheat acreage is up 48 percent from last year (620,000 acres for all purposes).
Excellent prices and good weather will interest producers in spraying fungicides for diseases control this year. Some producers may have already sprayed an early application.
However, the most effective application is at early heading (Feeke’s scale 10.3). There are several fungicides that you can use on wheat. If you’ve invested in a lot of nitrogen fertilizer this spring for your wheat don’t let disease problems eat up your yield. Give me a call here at the Extension office if you want more information.
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TDA GRANT PROGRAMS
The Tennessee Department of Agriculture’s grant programs have been set to start with applications on June 2 this spring.
The grant programs which offer farmer’s 35 percent cost share on a wide variety of equipment, hay barns, etc., have been very popular with Warren County beef and dairy producers as well as nursery and small fruit and vegetables producers will be much the same as in past years. Warren county producers have invested over 1.2 million dollars in their farming operations over the last two years through this grant program.
They’ve added grants for row crop producers to add additional grain storage but the details haven’t been announced yet. Charles Hord grant coordinator for the TN Department of Agriculture will be here at out beef producers meeting on Monday night, May 5th to bring us the grant details.
Many of the grants require the producer to have a premise ID card and a Beef Quality Assurance certification. Keep the May beef producers meeting on your calendar and if you need more information give me a call here at the Extension office.
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SPRING CATTLE SHOW SATURDAY
If you want to see a bunch of hard working, enthusiastic kids come out to the Warren County Fairgrounds this Saturday.
The spring preview cattle show is put together by a bunch of parents here in Warren County to give their kids and others to get a early start on the cattle show season. John and Terry turner are leader in this group who are expecting exhibitors from across the state. Several breeds of cattle are expected and its fun to watch the young folks compete. The show starts about noon.
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PLANTING INTENTIONS REPORT RELEASED
Tennessee farmers plan to make decisive shifts in crop acreages during 2008, according to a March 1 survey of producers conducted by the Tennessee Field Office of USDA’s National Agricultural Statistics Service.
Similar to last year’s 320,000 acre upward spike in corn, soybean acreage is projected to rise 410,000 acres and, if realized, the largest one year increase since records began in 1924. Also noteworthy is the projected increase of winter wheat acreage, which would mark the highest level since 1984. The large shifts are being prompted by tremendous market prices for soybeans and wheat, combined with high input costs for other crops. This shift in acreage would result in sizable decreases in land devoted to cotton and corn for 2008.
State Director Debra Kenerson commented that, ‘We are seeing the State’s farmers adjust crop acreage to take advantage of changing markets. However, these results reflect producers’ intentions as of March 1 and could change, as weather conditions and other factors dictate.’
The March 1 survey showed the following results: corn acreage, down 25 percent from last year to 650,000 acres; soybeans, up 39 percent to 1,450,000 acres, the highest acreage devoted to this crop since 1986; cotton intentions, at 310,000 acres, down 40 percent from last year’s planted acreage of 515,000 and the lowest acreage since 1983; winter wheat seedings, at 620,000 acres, up 200,000 acres, or 48 percent from the previous year; and hay acreage for harvest, up slightly to 1.75 million acres.
Across the nation Corn growers intend to plant 86.0 million acres of corn for all purposes in 2008, down 8 percent from last year when corn planted area was the highest since 1944. Expected acreage is down from last year in most States as favorable prices for other crops, high input costs for corn, and crop rotation considerations are motivating some farmers to plant fewer acres to corn. Despite the decrease, corn acreage is expected to remain at historically high levels as the corn price outlook remains strong due in part to the continued expansion in ethanol production. Soybean producers intend to plant 74.8 million acres in 2008, up 18 percent from last year, but 1 percent below the record high acreage in 2006.
Cattle Sale report
Med and Lg 1 Steers Heifers
300-350 lbs 112.00 104.00
350-400 lbs 120.00-122.00 97.00-104.00
400-450 lbs 110.50-120.00 95.00-97.50
450-500 lbs 104.50-117.00 92.00-97.00
500-550 lbs 103.50-109.50 86.50-88.50
550-600 lbs 101.50-103.50 84.00-88.00
600-700 lbs 93.50-94.75 82.00-84.50
700-850 lbs 84.00-85.25 77.50-81.25
Med and Lg 2 Steers Heifers
300-350 lbs 109.00-113.00 103.00-113.00
350-400 lbs 116.00-120.00 103.00-106.00
400-450 lbs 108.50-113.00 90.00-94.00
450-500 lbs 103.00-108.00 88.25-90.00
500-600 lbs 100.50-104.00 83.50-88.35
600-700 lbs 87.25-91.75 77.00-79.00
700-850 lbs 83.50-84.50 74.00-75.00