June 16, 2017 Tennessee Market Highlights Number: 24

FED CATTLE: Fed cattle traded $5 lower on a live basis compared to last week. Prices on a live basis were mainly $128 to $132 with some at $134 while dressed trade ranged from $205 to $217 with most near $210. The 5-area weighted average prices thru Thursday were $130.23 live, down $4.91 from last week and $210.15 dressed, down $9.19 from a week ago. A year ago prices were $121.03 live and $195.03 dressed. It appears the finished cattle mar-ket has begun its price descent from its spring high just as the market moves into summer. Finished cattle prices were strong throughout the spring months and it ap-pears cattle prices will carry significant mo-mentum into the summer market. Prices have started to soften, but the market con-tinues to carry considerable strength when comparing to seasonal tendencies. One reason prices have remained high is due to the leverage feedlot managers have over packers. When packers are producing profitable margins and cattle feeders are extremely current in cattle marketing then this provides the cattle feeder the oppor-tunity to demand higher prices. The current marketing situation looks to persist for sev-eral more months.

BEEF CUTOUT: At midday Friday, the Choice cutout was $249.87 up $0.13 from Thursday and up $4.52 from last Friday. The Select cutout was $219.67 down $0.86 from Thursday and up $1.72 from last Fri-day. The Choice Select spread was $30.20 compared to $30.75 a week ago. The sum-mer grilling season is a strong supporter of beef prices especially leading up to the Me-morial Day holiday. Following the first ma-jor grilling holiday, beef prices are usually supported by other grilling holidays, but prices do begin to soften. As Father’s Day and Independence Day approach, there have not been any signs of the market mov-ing lower. The Choice and Select cutout prices would indicate strong demand for beef products as production remains above

a year ago as do prices. Beef prices are find-ing major support from domestic outlets while export markets continue to provide additional support. It may be difficult for the U.S. beef market to be in a much better situation than it is right now with reduced beef production in Australia, Brazilian meat companies facing challenges that have trad-ing partners skeptical, China reopening their market to U.S. beef, and strong taste for beef domestically. All of these factors have helped support beef prices and thus packer margins and the expectation is for these conditions to persist for several more months.

OUTLOOK: The calf and feeder cattle mar-kets have been exceptionally strong through the first five and a half months of the year, but softness in the calf market was present this week based on Tennessee weekly auction market averages. The softer prices for freshly weaned calves should not be concerning for producers as prices have strengthened over a two month period that generally results in softer prices. Prices will likely continue to soften through the fall months as most stocker producers already have pastures stocked for summer grazing resulting in a declining quantity demanded for these calves. There will be producers who continue to purchase a few animals along the way especially if they are using feed sources other than pasture, but pro-ducers using pasture as the primary feed source are generally cautious during sum-mer months as drought conditions are only two weeks away at any given time. The fall market for freshly weaned calves will con-tinue to be softer as the quantity of calves supplied seasonally increases. The decline in prices from summer through fall will largely hinge on weather conditions as cattle numbers are not expected to put much pressure on calf prices. The yearling cattle market appears to be favorable through the summer and likely through

(Continued on page 2)

Livestock Comments by Dr. Andrew P. Griffith Trends for the Week Compared to a Week Ago

Slaughter Cows

Steady to $1 higher

Slaughter Bulls

Steady

Feeder Steers

$1 to $5 lower

Feeder Heifers

Steady to $4 lower

Feeder Cattle Index

Wednesday’s index: 152.73

Fed Cattle

The 5-area live price of $130.23 is down $4.91. The dressed price is down $9.19 at $210.15.

Corn

July closed at $3.84 a bushel, down 3 cents since last Friday.

Soybeans

July closed at $9.39 a bushel, down 2 cents since last Friday.

Wheat

July closed at $4.65 a bushel, up 20 cents since last Friday.

Cotton

July closed at 71.88 cents per lb, down 3.81 cent since last Friday.

2

much of the fall. Demand by feedlots for yearling cattle is very strong. Much of the strength in the market is due to the large profits that have been accumulating the past several months. Cattle feeders have been pushing cattle out of pens at a rapid pace due to strong profit margins. The rapid pace has resulted in lower cattle weights at harvest and a strong demand to refill pen space. Harvesting the cattle at lighter weights has resulted in some cattle being pulled off feed a little “green,” but cattle feeders have little concern as profits remain strong. Feedlots are current in cattle marketings which provides leverage over packers, but as packers continue to pull cattle forward, those feedlots will continue to pull cattle off of farms resulting in a strong feeder cattle market.

ASK ANDREW, TN THINK TANK: In recent weeks, several pro-ducers have inquired about retained ownership through the feedlot this year. Many of the inquiries have come from pro-ducers who have fed cattle in previous years, but a few inquir-ies have come from producers evaluating the marketing meth-od for the first time. The producers raising these questions range from small cow-calf operations to large operations. The size of the operation is not as important as the market condi-tions and the genetics behind the cattle to be owned. In rela-tion to market conditions, the market looks promising for re-taining ownership through the feedlot for cattle going on feed this summer. For cattle to be placed in the fall, it would proba-bly be best to give the market more time to develop before a final decision is made. Genetics and ability of an animal to grow efficiently and grade well are also vital. Animals that grade Choice or higher and that have a good feed efficiency are a nat-ural profit hedge. Otherwise, selling as feeder cattle may be the best option. If any producers are interested, I am in the process of putting together a load of cattle to be shipped to the feedlot through the Tennessee Beef Evaluation program in late July.

Please send questions and comments to agriff14@utk.edu or send a letter to Andrew P. Griffith, University of Tennessee, 314B Morgan Hall, 2621 Morgan Circle, Knoxville, TN 37996.

FRIDAY’S FUTURES MARKET CLOSING PRICES: Friday’s closing prices were as follows: Live/fed cattle –June $121.70 -0.80; Au-

(Continued from page 1)

Livestock Comments by Dr. Andrew Griffith

gust $118.18 +0.68; October $115.35 +0.65; Feeder cattle –August $147.88 +0.80; September $147.35 +0.95; October $145.83 +0.98; November $144.13 +0.93; July corn closed at $3.84 up $0.05 from Thursday.

Thursday June 8, 2017

Month Class III Close Class IV Close

Jun 16.34 16.02

Jul 16.49 17.35

Aug 17.13 17.58

Sep 17.43 17.70

Oct 17.49 17.50

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 116,750 427,500

Last week (4 days) 116,500 438,500

Year ago (4 days) 110,750 426,250

This week as percentage of

Week ago (%) 100% 97%

Year ago (%) 105% 100%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 249.74 220.53

Last Week 250.39 220.01

Year ago 226.42 204.26

Change from week ago -0.65 +0.52

Change from year ago +23.32 +16.27

3

Crop Comments by Dr. Aaron Smith

Overview Corn and cotton were down; soybeans were mixed; and wheat was up for the week. U.S. corn and soybean planting is all but complete. As such, focus will turn to the critical pollination period for corn (June-July) and pod filling stage for

soybeans (July-August). The past two years the futures market has provided short lived rallies that offered opportunities to price corn near $4.50 for the December contract. Weather will be the driving factor in determining if the market can produce a similar opportunity this summer. Any rallies, in the futures markets, should be viewed as opportunities to price additional production (with the caveat that projected production is sufficient to meet the additional pricing commitment). Do not trade price risk for pro-duction risk! December cotton futures have continued to slide from the 12-month high on March 20 of 75.72. Support lies near 68 cents. If pric-es are not able to hold 68 cents a move below the 12-month low of 65.5 on August 31, 2016 may occur. Global stocks are projected below 90 million bales (87.71 million bales) and global production is projected to be below global use, however a large domestic cotton crop could be enough to tip the scales to a stock building scenario. Wheat futures continued there rise and have now added over 30 cents since June 1 (closing on Friday at $4.65 ¼). Moderate to severe drought in North Dakota, South Dakota, and Montana decreased national spring wheat crop condition ratings by 10% this week. Given the reduction in total wheat acres this year a major production disruption could provide fuel for increased domestic prices, however record large global stocks will continue to limit advances in prices. Corn July 2017 corn futures closed at $3.84 down 3 cents since last Friday. For the week, July 2017 corn futures traded between $3.70 and $3.85. Across Tennessee, average basis (cash price-nearby futures price) strengthened or remained unchanged at Memphis, Northwest Barge Points, and Lower-middle Tennessee and weakened at Northwest and Upper-middle Tennessee. Overall, basis for the week ranged from 18 under to 25 over the July futures contract with an average of 1 over the July futures contract at the end of the week. Corn net sales reported by exporters from June 2-8 were within expectations with net sales of 23.6 million bushels for the 2016/17 marketing year and 0.5 million bushels for the 2017/18 marketing year. Exports for the same time period were down from last week at 39.1 million bushels. Corn export sales and commitments were 97% of the USDA estimated total annual exports for the 2016/17 marketing year (September 1 to August 31) compared to a 5-year average of 98%. Ethanol production for the week ending June 9 was 1.002 million barrels per day up 3,000 from last week. Ethanol stocks were 22.542 million barrels, up 560,000 barrels. Jul/Sep and Jul/Dec future spreads were 8 and 18 cents, respectively. September 2017 corn futures closed at $3.92 down 3 cents since last Friday.

Nationally, the Crop Progress report estimated corn emerged at 94% compared to 86% last week, 95% last year, and a 5-year aver-age of 94%; and corn condition at 67% good-to-excellent and 8% poor-to-very poor. In Tennessee, the Crop Progress report esti-mated corn condition at 83% good-to-excellent 3% poor-to-very poor; corn planted at 99% compared to 98% last week, 99% last year, and a 5-year average of 99%; corn emerged at 97% compared to 95% last week, 99% last year, and a 5-year average of 98%; and corn silking at 1% compared to 1% last year and a 5-year average of 5%. In Tennessee, September 2017 cash forward contracts averaged $3.77 with a range of $3.70 to $3.98. December 2017 corn futures closed at $4.02 down 4 cents since last Friday. Down-side price protection could be obtained by purchasing a $4.10 December 2017 Put Option costing 31 cents establishing a $3.79 fu-tures floor.

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

Soybeans July 2017 soybean futures closed at $9.39 down 2 cents since last Friday. For the week, July 2017 soybean futures traded between $9.25 and $9.43. Average soybean basis weakened or remained unchanged at Memphis, Northwest Barge Points, and Lower-middle Tennessee and strengthened at Upper-middle and Northwest Tennessee. Basis ranged from 36 under to 7 over the July futures contract at elevators and barge points. Average basis at the end of the week was 11 under the July futures contract. Net sales reported by exporters were within expectations with net sales of 12.5 million bushels for the 2016/17 marketing year and 11.5 million bushels for the 2017/18 marketing year. Exports for the same period were up from last week at 18 million bushels. Soybean export sales and commitments were 106% of the USDA estimated total annual exports for the 2016/17 marketing year (September 1 to August 31), compared to a 5-year average of 100%. July soybean-to-corn futures price ratio was 2.45 at the end of the week. Jul/Aug and Jul/Nov future spreads were 4 cents and 11 cents, respectively. August 2017 soybean futures closed at $9.43 down 2 cents since last Friday.

Nationally, the Crop Progress report estimated soybeans planted at 92% compared to 83% last week, 91% last year, and a 5-year average of 87%; soybeans emerged at 77% compared to 58% last week, 77% last year, and a 5-year average of 73%; and soybean condition at 66% good-to-excellent and 6% poor-to-very poor. In Tennessee, the Crop Progress report estimated soybean condition at 82% good-to-excellent and 3% poor-to-very poor; soybeans planted at 74% compared to 62% last week, 73% last year, and a 5-year average of 69%; and soybeans emerged at 59% compared to 45% last week, 58% last year, and a 5-year average of 52%. In Tennessee, October / November 2017 soybean cash contracts average $9.29 with a range of $8.98 to $9.52. November/December 2017 soybean-to-corn price ratio was 2.36 at the end of the week. November 2017 soybean futures closed at $9.50 up 2 cents since last Friday. Downside price protection could be achieved by purchasing a $9.60 November 2017 Put Option which would cost 49 cents and set a $9.11 futures floor. Cotton July 2017 cotton futures closed at 71.88 cents down 3.81 cents since last Friday. For the week, July 2017 cotton futures traded be-tween 70.9 and 75.75 cents. Delta upland cotton spot price quotes for June 15 were 70.41 cents/lb (41-4-34) and 71.66 cents/lb (31-3-35). Adjusted world price (AWP) decreased 0.72 cents to 67.31 cents per pound. Net sales reported by exporters were down from last week with net sales of 69,400 bales for the 2016/17 marketing year and 197,600 bales for the 2017/18 marketing year. Exports for the same period were down from last week at 233,300 bales. Upland cotton export sales were 103% of the USDA esti-mated total annual exports for the 2016/17 marketing year (August 1 to July 31), compared to a 5-year average of 105%. October

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

2017 cotton futures closed at 70.86 down 3.47 cents since last Friday. Jul/Oct and Jul/Dec cotton futures spreads were -1.02 cents and -2.52 cents, respectively. Nationally, the Crop Progress report estimated cotton planted at 92% compared to 80% last week, 87% last year, and a 5-year aver-age of 90%; cotton squaring at 15% compared to 11% last week, 12% last year, and a 5-year average of 12%; and cotton condition at 66% good-to-excellent and 5% poor-to-very poor. In Tennessee, cotton condition was estimated at 83% good-to-excellent and 6% poor-to-very poor; cotton planted at 98% compared to 97% last week, 99% last year, and a 5-year average of 96%; and cotton squaring at 18% compared to 10% last week, 13% last year, and a 5-year average of 9%. December 2017 cotton futures closed at 69.36 down 3.13 cents since last Friday. Downside price protection could be obtained by purchasing a 70 cent December 2017 Put Option costing 3.82 cents establishing a 66.18 cent futures floor. Wheat July 2017 wheat futures closed at $4.65 up 20 cents since last Friday. July 2017 wheat futures traded between $4.31 and $4.68 this week. July wheat-to-corn price ratio was 1.21.Wheat net sales reported by exporters were within expectations with net sales of 13.7 million bushels for the 2017/18 marketing year. Exports for the week were up from last week at 22.9 million bushels. Wheat export sales were 26% of the USDA estimated total annual exports for the 2017/18 marketing year (June 1 to May 31), compared to a 5-year average of 25%. Jul/Sep and Jul/Dec future spreads were 16 cents and 37 cents, respectively. In Tennessee, June/July 2017 cash wheat ranged from $4.09 to $4.84.

Nationally, the Crop Progress report estimated winter wheat condition at 50% good-to-excellent and 16% poor-to-very-poor; win-ter wheat headed at 92% compared to 87% last week, 95% last year, and a 5-year average of 91%; winter wheat harvested at 17% compared to 10% last week, 10% last year and a 5-year average of 15%; spring wheat emerged at 95% compared to 90% last week, 99% last year, and a 5-year average of 92%; and spring wheat condition at 45% good-to-excellent and 20% poor-to-very poor. In Tennessee, winter wheat condition was reported at 65% good-to-excellent and 8% poor-to-very poor; winter wheat coloring at 97% compared to 94% last week, 96% last year, and a 5-year average of 93%; winter wheat mature at 87%; and winter wheat har-vested at 32% compared to 7% last week and 18% last year. September 2017 wheat futures closed at $4.81 up 21 cents from last Friday. July 2018 wheat futures closed at $5.38 up 20 cents since last Friday. Downside price protection could be obtained by pur-chasing a $5.40 July 2018 Put Option costing 45 cents establishing a $4.95 futures floor. Additional Information: If you would like further information or clarification on topics discussed in the crop comments section or would like to be added to our free email list please contact me at aaron.smith@utk.edu.

6

Friday, June 9, 2017 — Thursday, June 15, 2017

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Jul 9.41 9.31 9.32 9.31 9.34

($/bushel) Aug 9.45 9.35 9.36 9.35 9.38

Sep 9.45 9.35 9.36 9.36 9.40

Nov 9.48 9.38 9.39 9.39 9.44

Jan 9.55 9.45 9.46 9.46 9.51

Mar 9.58 9.50 9.51 9.52 9.56

Corn Jul 3.87 3.77 3.81 3.77 3.79

($/bushel) Sep 3.95 3.85 3.88 3.85 3.87

Dec 4.06 3.95 3.99 3.95 3.97

Mar 4.14 4.04 4.08 4.04 4.06

May 4.20 4.10 4.14 4.10 4.12

Jul 4.25 4.15 4.19 4.15 4.17

Wheat Jul 4.45 4.34 4.45 4.43 4.53

($/bushel) Sep 4.60 4.48 4.59 4.57 4.69

Dec 4.81 4.70 4.80 4.79 4.90

Mar 4.98 4.88 4.98 4.96 5.07

May 5.09 5.00 5.10 5.09 5.19

Soybean Meal Jul 305 301 301 301 300

($/ton) Aug 307 303 303 303 302

Sep 308 305 305 305 304

Oct 308 305 305 305 304

Dec 309 307 306 307 306

Jan 311 308 307 308 307

Cotton Jul 75.69 75.13 74.48 73.50 71.91

(¢/lb) Oct 74.33 74.11 73.86 72.92 71.22

Dec 72.49 72.44 71.82 70.95 69.47

Mar 72.38 72.37 71.81 71.02 69.44

May 72.70 72.61 72.04 71.32 69.84

Live Cattle Jun 131.25 128.35 127.50 124.50 122.50

($/cwt) Aug 123.85 121.55 120.87 117.87 117.50

Oct 119.87 118.20 117.37 114.80 114.70

Dec 120.50 118.82 117.92 115.52 115.55

Feb 120.85 119.10 118.27 115.85 116.00

Feeder Cattle Aug 154.17 151.55 149.95 146.12 147.07

($/cwt) Sep 153.62 151.22 149.70 145.70 146.40

Oct 152.27 149.80 148.32 144.10 144.85

Nov 150.87 148.60 147.25 142.85 143.20

Jan 144.85 142.22 141.10 137.55 137.67

Mar 142.50 140.55 139.75 135.77 135.95

Market Hogs Jun 82.47 81.97 82.77 83.00 83.00

($/cwt) Jul 82.70 80.70 82.27 82.57 82.05

Aug 82.05 80.00 80.22 80.40 78.92

Oct 69.50 68.50 69.07 68.57 67.20

Dec 63.55 63.07 63.55 63.10 61.77

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 4,522 (7) Week ago: 6,510 (8) Year ago: 5,528 (11)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

—————————————————————— $/cwt ——————————————————————

Steers: Medium/Large Frame #1-2

300-400 lbs 157.00 195.00 171.16 180.01 161.14

400-500 lbs 144.00 181.00 165.10 170.53 144.45

500-600 lbs 140.00 172.00 157.21 160.96 139.52

600-700 lbs 130.00 162.50 149.58 150.28 131.78

700-800 lbs 129.00 152.00 138.73 143.02 122.89

Steers: Small Frame #1-2

300-400 lbs 130.00 145.00 137.65 160.79 137.17

400-500 lbs 137.50 152.50 145.76 148.45 131.87

500-600 lbs 127.00 141.00 136.61 141.57 ———

600-700 lbs ——— ——— ——— ——— ———

Steers: Medium/Large Frame #2-3

300-400 lbs 137.00 168.00 155.72 167.15 149.69

400-500 lbs 147.00 169.00 160.37 159.58 130.16

500-600 lbs 130.00 158.00 150.27 148.42 127.68

600-700 lbs 130.00 146.00 139.84 144.00 116.56

700-800 lbs 114.00 134.00 127.54 129.37 123.75

Holstein Steers

300-400 lbs 90.00 108.00 102.48 ——— ———

500-600 lbs 92.00 92.00 92.00 94.53 ———

700-800 lbs ——— ——— ——— ——— 95.09

Slaughter Cows & Bulls

Breakers 75-80% 57.50 62.77 62.93 74.58 68.00

Boners 80-85% 66.11 65.13 76.00 58.50 73.50

Lean 85-90% 47.00 65.50 59.18 58.85 71.39

Bulls YG 1 84.00 98.00 89.37 89.58 102.00

Heifers: Medium/Large Frame #1-2

300-400 lbs 137.00 171.00 154.54 161.28 146.56

400-500 lbs 128.00 160.00 149.30 154.77 134.37

500-600 lbs 127.00 157.00 142.97 146.34 126.41

600-700 lbs 120.00 148.00 134.00 135.08 121.16

Heifers: Small Frame #1-2

300-400 lbs 110.00 141.00 131.48 145.04 124.80

400-500 lbs 118.00 134.00 125.41 ——— 118.56

500-600 lbs ——— ——— ——— 117.84 113.73

600-700 lbs ——— ——— ——— ——— ———

Heifers: Medium/Large Frame #2-3

300-400 lbs 130.00 156.00 144.24 151.46 131.12

400-500 lbs 124.00 152.00 140.60 141.38 120.98

500-600 lbs 120.00 153.50 135.00 136.15 116.69

600-700 lbs 117.50 127.50 122.15 122.98 106.54

Prices on Tennessee Reported Livestock Auctions for the week ending June 16, 2017

8

Friday, June 9, 2017 — Thursday, June 15, 2017

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

———————–——————————————— $/bushel ———————————————————–———

No. 2 Yellow Soybeans

Memphis 9.48-9.56 9.36-9.36 9.37-9.37 9.34-9.36 9.37-9.39

N.W. B.P. 9.45-9.51 9.31-9.38 9.32-9.38 9.31-9.33 9.34-9.38

N.W. TN 9.06-9.11 8.96-8.98 8.97-9.02 8.96-9.01 8.99-9.04

Upper Md. 9.21-9.36 9.12-9.26 9.13-9.27 9.11-9.26 9.16-9.29

Lower Md. 9.21-9.27 9.11-9.16 9.12-9.18 9.11-9.17 9.14-9.20

Yellow Corn

Memphis 3.87-3.87 3.77-3.77 3.81-3.81 3.77-3.77 3.79-3.79

N.W. B.P. 3.84-3.85 3.76-3.77 3.80-3.81 3.76-3.77 3.79-3.80

N.W. TN 3.77-3.85 3.69-3.72 3.71-3.76 3.67-3.72 3.64-3.74

Upper Md. 3.77-3.93 3.67-3.81 3.71-3.86 3.65-3.81 3.67-3.83

Lower Md. 4.08-4.12 3.97-4.02 4.01-4.06 3.97-4.02 4.00-4.04

Wheat

Memphis 4.73-4.81 4.62-4.69 4.70-4.75 4.68-4.73 4.78-4.83

Prices Paid to Farmers by Elevators

100120140160180200220240260

Tennessee 500-600 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

85105125145165185205225

Tennessee 700-800 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

8595

105115125135145155165175

5-Area Finished Cattle Prices2015, 2016 and 5-year average

2011/2015 Av g 2016 2017

35455565758595

105115

Tennessee Slaughter Cow PricesBreakers 75-80%

2015, 2016 and 5-year average

2011/2015 2016 2017

9

East Tennessee Livestock Center - June 14, 2017 1 load out of 69 steers; est. wt 825 lbs.; 95% L&M-1s & 5% L&M-2’s; medium flesh; 80% Black/BWF, 15% Chax/Smoky, & 5% red/RWF; $140.75 1 split load out of 70 steers & heifers; est. wt. 825 lbs.; 95% L&M-1s & 5% L&M-2’s; medium flesh; 75% Black/BWF, 15% Chax/Smoky, & 10% red/RWF; $134.00 2 loads out of 110 Holstein steers; avg. wt. 905 lbs.; $101.01 Mid-South Livestock, Unionville - June 12, 2017 1 load of 60 steers; avg. wt. 883 lbs.; $140.25

East Tennessee Livestock Center, Sweetwater, TN Holstein Steer Sale Weighted Average Report for Friday Jun 09, 2017 Cattle Receipts: 1078 For complete report: https://www.ams.usda.gov/mnreports/nv_ls182.txt Lower Middle Tennessee Cattlemens Video Board Sale Feeder Cattle Weighted Average Report for 06/09/2017 Receipts: 608 For complete report: https://www.ams.usda.gov/mnreports/nv_ls184.txt

6/13/17 TN Livestock Producers Fayetteville Receipts: 422 (150 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 136.00-139.00 400-500 lbs 161.00 400-500 lbs 136.00-139.00 500-600 lbs 149.00-158.00 500-600 lbs 135.00-138.00 600-700 lbs 143.50-150.00 600-700 lbs 131.00-135.00 700-800 lbs 143.00 800-900 lbs 96.00-121.00 Bulls: Med & Lg 1-2 400-500 lbs 140.00-149.00 500-600 lbs 141.00-145.00 600-700 lbs 133.00-138.50 6/13/17 Somerville Livestock Sales Receipts: 107 Steers/Bulls: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 138.00-152.00 300-400 lbs 136.00-152.00 400-500 lbs 145.00-157.00 400-500 lbs 138.00-147.00

Video Sales Self-Reported and Self-Graded Livestock Markets

Video Board Sale and Graded Sales

500-600 lbs 129.00-147.00 500-600 lbs 130.00-140.00 600-700 lbs 130.00-145.00 600-700 lbs 118.00-123.00 700-800 lbs 123.00-134.00 700-800 lbs 123.00-124.00 6/9/17 Coffee County Livestock Market Graded Goat and Sheep Sale Manchester, TN Receipts: 485 (310 Goats; 175 Sheep) Goats sold per hundred weight (cwt) unless otherwise noted, weights, actual or estimated. Slaughter Classes: Kids Selection 1 Selection 2 Selection 3 20-30 lbs 203.00-230.50 205.00-214.00 31-45 lbs 275.00-276.00 225.00-230.00 202.00-219.00 46-60 lbs 285.00-290.00 258.00-267.00 200.00-230.00 61-80 lbs 240.00 235.00 181.00 81-100 lbs 196.00 177.00 Feeders 25-55 lbs 167.50-202.50 Yearlings 50-100 lbs 150.00-233.00 Nannys 76-125 lbs 145.00-156.00 Nannys Over 125 lbs 148.00-152.00 Nannys Thin 120.00 Billys 76-125 lbs 150.00-160.00 Billys Thin 131.00 SHEEP: Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt). Choice and Prime 20-40 lbs 210.00 Good 180.00-215.00 Choice and Prime 40-60 lbs 200.00-227.00 Good 180.00-201.00 Choice and Prime 60-80 lbs 202.00-220.00 Good 165.00-180.00 Choice and Prime 80-100 lbs 170.00-203.00 Choice and Prime 125 lbs 140.00 Feeders 25-65 lbs 143.00-174.00 Yearlings 124.00-135.00 Ewes 70.00-122.00 Ewes Fat 85.00-98.00 Rams Fat 94.00

Columbia Graded Sheep and Goat Sale Weighted Average Report for 06/12/2017 Receipts: 988 (745 goats; 243 sheep) Last Sale: 491 For complete report: https://www.ams.usda.gov/mnreports/nv_ls320.txt

Video Board Sale and Graded Sales

Sheep and Goat Sale

10

Time to price calves is now Wes Ishmael Jun 05, 2017

“If you’re going to price spring calves for the fall and winter market, I’d sure get it done,” says Derrell Peel, Extension live-stock marketing specialist at Oklahoma State University.

He made that observation as the market headed into the mid-dle of May, a week after the highest fed cattle prices of the year, and while regional calf and feeder cattle prices continued to climb higher year over year for the first time since 2015.

All of those prices could be lower by the time you read this — but not necessarily. Either way, odds are that current prices are higher than you guessed before calving started.

It’s been that kind of year: hard to call, but pleasantly so, says Peel.

“We’re seeing the remnants of what cattle feeders were setting up during the last half of last year, pulling cattle forward,” Peel says. Slaughter levels continue higher year over year, but the market continues to offer feeders incentive to market cattle on a timely basis, given the wide discount between front-month Live Cattle futures and the cash market.

As fed cattle prices increased, so did the marketing incentive. All of that helped depress carcass weights and dilute expected beef production.

At the same time, Peel points out that domestic and interna-tional beef demand remains positive, especially considering growing supplies of pork and poultry.

In broader terms, market fundamentals remain strong. But, prices were feeling toppy heading into the second half of May. Thus, the encouragement from Peel and other livestock econo-mists to consider price risk management sooner rather than later.

“I believe it’s time to get some price floor insurance purchased on fall calves in particular,” said Stephen Koontz, agricultural economist at Colorado State University, in an early-May issue of In the Cattle Markets. “The fundamentals are there but are short-term, and will not likely persist through the summer. I do

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not believe these [pricing] opportunities will continue until cow-calf enterprises have the chance to market the current calf crop on video auctions.”

The broad range of price risk management tools include every-thing from forward contracts, to Livestock Risk Protection in-surance, to a straight hedge with futures, to options, to both simple and elaborate combinations of various tools. It depends on resources, specific goals and appetite for risk.

Koontz offered the following example, based on mid-May mar-kets:

“October feeder cattle options are very pricey at-the-money; after all, it’s a long time until October. But a put with a $130 strike price is trading around $2.35 per cwt. That’s $1,175 with-out commissions to buy a floor at $130.”

More liquid options are at higher strike prices and have higher premiums, Koontz explained. “A price floor at $130 plus a rea-sonable Colorado basis of $20 per cwt on a steer calf weighing 500 to 600 pounds is a cash price floor of $150 per cwt. Com-pared with last fall, that’s a number that’s hard to argue with.”

Retained ownership is another option, be it through the stock-er phase or feedlot. For that matter, more value could be add-ed to cows leaving the herd.

“If you have forage or feed resources, you have to figure out the best use for them,” Peel says. “For instance, do you sell your cull cows, or do you keep them and use some of your low-er-quality feed? I think all of these things have to be on the radar.”

If you’re still wondering whether to protect current prices, or to what degree, Peel remembers advice he received years ago from a grain marketing peer: “Will it hurt worse to give up a potentially higher price, or gamble that the price moves low-er?”