16 CapitalPress.com
April 28, 2017
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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.