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16 CapitalPress.com April 28, 2017 Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters Dairy/Livestock Dairy Markets Beef demand keeps cattle moving through feedlots Lee Mielke By CAROL RYAN DUMAS Bears emerge as milk supply grows By LEE MIELKE For the Capital Press C ME dairy prices rallied late in the post-Easter week after most had lost ground earlier. Spurred perhaps by Thurs- day’s Milk Production report, block cheddar closed Friday at $1.5450 per pound, up 7 cents on the day and the week and 12 1/4-cents above a year ago. The barrels, after dipping to $1.3825 Thursday, gained 4 1/2 cents Friday to close at $1.4275, unchanged on the week and a quarter-cent above a year ago. Five cars of block were sold on the week at the CME and 38 of barrel, 22 on Friday alone. The blocks ticked up three-quarter cents Monday and held there Tuesday at $1.5525, following a bearish Cold Stor- age report. The barrels were un- changed Monday and Tuesday but the spread is at a higher than normal 12 1/2-cents. Milk continues to be readi- ly available for Midwest chee- semakers, according to Dairy Market News, and a number of recently cut-off milk producers will be sending their milk into Midwest cheese vats due to ac- tions by the Canadian govern- ment. Cheese output in the West is also active, with abundant milk supplies. But, DMN says, “Several fast food chains are making a move to use more natural cheese on their menus.” HighGround Dairy warned in its latest Milk and Feed Mar- ket Update that “supply side fundamentals have become in- creasingly bearish. Production has continued to surge in the U.S. as herds in the Southwest and Midwest have grown at an aggressive pace, which has led to an abundance of milk.” Spot butter fell to $2.0625 per pound last Tuesday but closed Friday at $2.09, up a quarter-cent on the week and 6 cents above a year ago. It gave up a penny and a half Monday but jumped 6 1/4 cents Tuesday, to $2.1375. Butter output continues at active levels with cream avail- able. Stronger-than-expected sales were reported from some manufacturers. Western output is also steady. Cash Grade A nonfat dry milk closed Friday at 85 1/2-cents per pound, up a penny on the week and 10 1/2-cents above a year ago. Monday saw the powder drop a penny, then gain back three-quarters Tuesday and hit 85 1/4-cents per pound. Powder is moving south to Mexico, where drought has taken a toll on milk output, but political tensions keep those ex- ports under suspicion. Capital Press The number of cattle placed into feedlots during March, up 11 percent year over year, was higher than expect- ed and represented the highest placements for March since the USDA data series began in 1996. At 2.1 million head, place- ments increased 210,000 over March 2016, USDA National Agricultural Statistics Service reported. Most analysts were looking for a 6 to 9 percent increase, and that’s probably why futures prices on fed cattle were off on Monday, said Derrell Peel, Oklahoma State University Extension livestock marketing specialist. “Placements are probably the story everyone is focusing on, but placements can be over- Cattle on feed, placements, marketing and other disappearances, March (Feedlots with 1,000-head capacity or more) Item (1,000 head) 2016 2017 Placed on feed, March Fed cattle marketed, March Other disappearance, March* 1,892 1,747 62 Item (1,000 head) 2016 2017 On feed, April 1 10,853 Percent change 2,102 1,914 56 11 10 -10 Percent change 10,904 0.5 *Includes death loss, movement from feedlots to pasture, and shipments to other feedlots for further feeding. Source: USDA NASS played,” Peel said. With three years of herd ex- pansion, no one should be sur- prised by higher placements. What shouldn’t be overlooked are marketings of fed cattle out of feedlots. Those have been at “very good rates” since the middle of last year, helping feedlots to stay current and Capital Press graphic contributing to strong fed cattle markets this year, he said. “They’re as important a sto- ry as just placements,” he said. Marketings out of feedlots during March, at 1.91 million, were up 167,000 head and 10 percent year over year, NASS reported. The number of cattle on feed is growing slowly. The ger-than-expected cattle mar- kets this spring, he said. As long as that continues, there’s no reason for pressure on cattle prices. Cattle markets already made adjustments from the record highs a couple of years ago and are pretty well in balance he said. Looking ahead, the general trend will be growing place- ments. That shouldn’t be a sur- prise, with more cattle out there working through the system. The herd is probably still ex- panding, meaning placements will be larger in 2018 and 2019 as well, he said. There is a potential for sup- ply to pressure cattle prices, and he wouldn’t be surprised if prices came down a little. But continued strong demand could minimize price pressure going forward, he said. “It’s wait-and-see at this point,” he said. S. Idaho Livestock Hall of Fame honors inductees By CAROL RYAN DUMAS Capital Press TWIN FALLS, Idaho — The Southern Idaho Livestock Hall of Fame celebrated its newest inductees at the orga- nization’s 58th annual ban- quet on April 11. The honored inductees were cow-calf operators Duane and Mary Ramseyer of Filer; cattle breeders Cor- dell and Patty Sheridan of Almo; dairy producers Jerry and Carol Visser of Castle- ford; lamb producer, market- er and industry lobbyist Stan Boyd of Eagle; and ag broad- caster Evan Slack of Denver, who also runs cattle in South- ern Idaho. The Ramseyers are from pioneer families in Southern Idaho, and Duane grew up in- volved in his family’s cattle, sheep and pig operation. Af- ter marrying, the Ramseyers ran a cow-calf operation with Duane’s father and brother at Antelope Springs Ranch in Carol Ryan Dumas/Capital Press This year’s inductees into the Southern Idaho Livestock Hall of Fame gather following the organization’s 58th annual banquet in Twin Falls on April 11. From left are Duane and Mary Etta Ramseyer; J.D. and Sabrina Messner (accepting for Evan Slack); Stan Boyd; Cordell and Patty Sheridan; and Jerry and Carol Visser. southern Twin Falls Coun- ty for 25 years, investing in ongoing range improvements that are still paying off in abundant forage. They sold the ranch in the 1980s and continued farming in the Fil- er area. They were members of the 71 Grazing Association, and Duane has been a member of the Idaho Cattle Associa- tion, served on the boards of the American Falls Reservoir and Snake River Sugar Co., served on the Idaho Potato Advisory Commission and has mentored many 4-H proj- ects. The Sheridans grew up on their respective families’ cattle ranches and decided to focus their operation on purebred cattle, establishing a respected breeding program and running a commercial cow-calf operation. They showed cattle at the state, regional and national levels, and Cordell helped or- ganize the Idaho-Utah Gelb- vieh Association and served as its first president. He served as the Cassia County Fair beef superintendent for 12 years and now serves on the fair board. Both served as 4-H leaders for more than 30 years. The Vissers went into partnership with Jerry’s par- ents to expand the family’s Chino Valley, Calif., dairy. They relocated to Idaho to start a new dairy and built an operation that is consistently recognized for its high-qual- ity milk and animal care. Jer- ry has served on the board of Milk Producers Council and the Dairy Herd Improvement Association. Boyd, who also raises lambs, has been involved with the Rocky Mountain Sheep Association for more than 40 years, first as a mar- keter and then as general manager. He also served as long-time executive director of the Idaho Wool Growers Association — shepherding many industry bills through the state legislature — ex- ecutive secretary of the Ida- ho Sheep and Goat Health Board and secretary-treasur- er of the Boise District Graz- ing Board. Slack has been an agricul- tural broadcaster for more than 50 years — providing news, insight and market information to producers in the West. He established the Evan Slack Network, spanning numerous radio stations in 12 states and two Canadian provinces. He is a long-time member of the National As- sociation of Farm Broad- casters, serving as its presi- dent in the 1980s. U.S. milk production recovering from hard winter By CAROL RYAN DUMAS Capital Press No milk shortage Preliminary USDA data pegs March milk output in the top 23 producing states at 17.5 billion pounds, up 1.8 percent from March 2016. Cow numbers totaled 8.71 million, up 15,000 from Feb- ruary and 72,000 more than a year ago. Output per cow averaged 2,012 pounds, up 18 pounds from a year ago. California output was be- low a year ago for the third month in a row, down 2.9 per- cent, on a 45 pound per cow loss and 12,000 fewer cows. Wisconsin was up 1.5 percent on a 30 pound gain per cow but cow numbers unchanged. Texas again showed the biggest year over year gain, up a tank busting 16.4 per- cent, thanks to 47,000 more cows and 110 pounds more per cow. New Mexico was up 9 percent, on an 80-pound gain per cow and 16,000 more cows. Michigan was up 3.5 per- cent on 9,000 additional cows and 30 pounds more per cow. Idaho was down 1 per- cent, on a 45 pound per cow loss, but cow numbers were up 7,000. New York was up 3.6 percent, on a 65-pound gain per cow and 2,000 more cows. industry is doing a good job of managing increased supplies. Feedlots are making money. The cost of gain is favorable, so they’re buying cattle and mov- ing them through — on-feed time is down, he said. “They’re moving more cat- tle through faster,” he said. Feeder cattle markets have also been strong. The relation- ship between fed cattle and feeder cattle works. And with improving pasture in the South- ern and Central Plains, both feedlot and grazing demand will keep feeder cattle prices stable, he said. “Underneath it all is de- mand,” he said. Beef production is expect- ed to continue to increase, but it appears consumers are will- ing to buy that beef as prices adjust downward on higher supply. And exports are up this year. Both have led to stron- Mateusz Perkowski/Capital Press File Cows are milked at Threemile Canyon Farms near Boardman, Ore. The dairy helped forestall a bill that would impose regulations on air emissions from dairy farms across the state. Bills imposing new dairy regs fail to make it out of committee Two proposals debated in Senate Environment Committee By MATEUSZ PERKOWSKI Capital Press SALEM — Two large dair- ies in Oregon have forestalled a bill that would impose regu- lations on air emissions from dairy farms across the state. State regulators would have been required to draw up rules restricting dairy air emissions under Senate Bill 197, which was opposed by the Oregon Dairy Farmers Association and Oregon Farm Bureau. Supporters of the bill ar- gued that a 2008 task force recommended that Oregon’s Environmental Quality Com- mission devise new rules aimed at reducing dairy air emissions, such as methane and other “greenhouse gases.” Opponents countered that Oregon’s air quality is highly regulated by the U.S. Envi- ronmental Protection Agency and that dairies are voluntari- ly adopting measures to re- duce emissions. An alternative to SB 197 was made possible by Three Mile Canyon Farms, a large dairy near Boardman, and Lost Valley Ranch, a pro- posed large dairy nearby, which have agreed to devise “best management practic- es” to control emissions and prevent haze in the Columbia Gorge, said Sen. Mike Dem- brow, D-Portland. Dembrow, chairman of the Senate Environment and Natural Resources Commit- tee, will participate in a work group setting best manage- ment practices, along with representatives of the Oregon Department of Agriculture and Oregon State University. Milk production on U.S. dairy farms in March showed signs of recovery from harsh winter weather that took a toll on cows in February, although the Pacific Northwest and California were still in neg- ative territory for year-over- year production. Six of the 23 major milk-production states showed production losses in March, compared to 14 in February. Nationwide, milk production was up 1.7 percent year-over-year in March, af- ter being down 1.3 percent in February, according to USDA National Agricultural Statis- tics Service. Total production in March nationwide was 18.7 billion pounds, up almost 300 million pounds from March 2016 on 59,000 additional cows and a 21-pound increase per cow. February’s cow count was up 54,000 cows, but output took a hit with a 33-pound decrease per cow, NASS re- ported. States with some of the biggest declines in February and still showing lingering ef- fects of cold, wet weather are California, Idaho, Oregon and Washington. California’s production declined 5.3 percent in Feb- ruary on 14,000 fewer cows and a drop of 85 pounds per cow year over year. Milk pro- duction losses moderated in March to a 2.9 percent decline with 12,000 fewer cows and 45 fewer pounds per cow. Idaho experienced a pro- duction decline of 4.6 percent in February. Despite 7,000 additional cows, per-cow pro- duction was down 110 pounds. The state’s dairy farmers also had 7,000 additional cows in March year over year, but output per cow dropped 45 pounds for a 1 percent year- over year decline in milk pro- duction. Oregon and Washington U.S. milk production in March (Millions of pounds) Area 2016 Percent 2017 change Calif. 3,605 3,501 -2.9 Idaho 1,226 1,214 -1 Ore. 227 218 -4 Wash. 572 553 -3.3 U.S. 18,401 18,710 1.7 Source: USDA NASS Capital Press graphic had 2,000 and 3,000 fewer cows, respectively, in Feb- ruary and March. But lower output per cow contributed to milk production declines in February of 7.2 percent in Or- egon and 7.5 percent in Wash- ington. Oregon was down 95 pounds per cow in February, and Washington was down 125 pounds per cow. Milk-production losses moderated in March to a 4 percent decline in Oregon on a per-cow loss of 40 pounds and a 3.3 decline in Washington on a per-cow loss of 45 pounds. Arizona also took a big hit in February, with a 5.1 percent decline in milk production with 1,000 additional cows but a per-cow loss of 115 pounds. The top per-cow producer in the country, it recovered to a 0.4 percent increase in total milk production in March with 1,000 additional cows year over year and per-cow produc- tion equal to March 2016 at 2,260 pounds. Other areas of the country marked robust production in March, including Texas, up 16.4 percent on 47,000 addi- tional cows and 110 pounds per cow year over year. New Mexico was up 9 percent on 16,000 additional cows and 80 pounds more milk per cow. Colorado increased milk production 7.3 percent on 9,000 additional cows produc- ing an additional 25 pounds per cow. Kansas was up 6.6 percent on 8,000 additional cows producing 20 pounds more milk per cow.