Oklahoma Cattlemen’s Association Prepares For Their 66th Annual Convention & Trade Show

Oklahoma City, Okla. – The Oklahoma Cattlemen’s Association is preparing for the 66th Annual Convention and Trade Show, scheduled for July 20-21, 2018. The event will be held at the Embassy Suites in Norman, Okla.
“Our convention committee wanted this year’s convention to focus on business. Since it’s the 66th annual convention, our theme will revolve around Route 66. While many things have changed in the beef industry since the OCA was officially formed in 1953, OCA continues to provide firm, steadfast support to our membership,” said OCA President Weston Givens.
Convention attendees will enjoy a large trade show along with the opportunity to attend five sessions of Cattlemen’s College with varying topics for cattlemen to gain knowledge. Discussion around OCA policy and an OCA General Business meeting will also take place. The final event of convention is the awards banquet where outstanding cattlemen and their accomplishments will be recognized and celebrated.
“Please plan to join your fellow cattlemen at the 66th Annual OCA Convention and Trade Show,” Givens said. “Each time I participate in an event where there are fellow cattlemen around, I learn something, I make a new friend and business contact and I come home with a renewed sense of pride in the business I’ve chose - the Beef Business.”
The OCA is the trusted voice of the Oklahoma Cattle Industry. OCA is the only voice that speaks solely for the cattlemen of Oklahoma and represents beef producers in all 77 counties across the state. The OCA officers, board of directors and membership encourages you to join us in our advocacy efforts to ensure less government intervention, lower taxes and a better bottom line. For more information about OCA membership, the theft reward program or activities call 405-235-4391 or visit www.okcattlemen.org.

Pruitt At EPA Resignation Comes After Growing RFS Anger

By Todd Neeley
DTN Staff Reporter

Omaha (DTN) – Scott Pruitt is out as EPA administrator after the embattled agency head tendered his resignation to President Donald Trump on July 5.
Trump made the announcement via Twitter on July 5: “I have accepted the resignation of Scott Pruitt as the Administrator of the Environmental Protection Agency. Within the Agency Scott has done an outstanding job, and I will always be thankful to him for this. The Senate confirmed Deputy at EPA, Andrew Wheeler, will... on July 9 assume duties as the acting Administrator of the EPA. I have no doubt that Andy will continue on with our great and lasting EPA agenda. We have made tremendous progress and the future of the EPA is very bright!”
After Pruitt’s resignation takes effect on July 6, Wheeler will assume his role as acting administrator.
For those keeping an ethanol scorecard on the change at EPA, Wheeler worked for Sen. Jim Inhofe, R-Okla., for six years, serving as the U.S. Senate Committee on Environment and Public Works staff director and chief counsel. Wheeler has lobbied for a number of different industries in Washington, most notably coal interests. The committee’s primary role is overseeing the EPA. Inhofe has been a longtime critic of the ethanol industry.
Pruitt’s tenure as head of the EPA featured both the good and the bad for farm country.
Pruitt’s EPA is in the process of rewriting the waters of the United States, or WOTUS, rule. The 2015 rule was widely unpopular in the Corn Belt, where farmers and ranchers expressed concern the agency was attempting to expand its regulatory reach.
On the flip side, Pruitt’s handling of the Renewable Fuel Standard has been somewhat confrontational. The agency granted an unprecedented number of small-refinery waivers to the RFS, totaling 2.25 billion gallons in lost biofuel demand in 2016 and 2017. All the while, Pruitt’s EPA had put the RFS timeline back on track in releasing proposed volumes on time.
On July 5, the price of renewable identification numbers spiked on news of Pruitt’s resignation. The market for 2018 D6 ethanol RINs jumped by 6 cents, and 2018 D4 biodiesel RINs were 4 cents higher.
Sen. Charles Grassley, R-Iowa, said the president made the “right” decision. Despite complaining of Pruitt’s missteps with the RFS, Grassley had stopped short of calling for Pruitt’s resignation.
“Administrator Pruitt’s ethical scandals and his undermining of the president’s commitment to biofuels and Midwest farmers were distracting from the agency’s otherwise strong progress to free the nation of burdensome and harmful government regulation,” Grassley said in a statement.
“Fewer things are more important for government officials than maintaining public trust. Administrator Pruitt, through his own actions, lost that trust,” Grassley said.
Iowa Republican Gov. Kim Reynolds said Pruitt’s resignation is an opportunity for the administration to install new leadership at EPA that is committed to renewable fuels.
“I will continue to fight for a robust Renewable Fuel Standard by working with our federal delegation in Washington, D.C., to hold the administration to this promise,” she said. “Iowa farmers deserve nothing less.”
Renewable Fuels Association President and CEO Bob Dinneen said in a statement said the resignation was needed.
“For the past year, Scott Pruitt had been waging war against the Renewable Fuel Standard, the biofuels industry, and the millions of farmers and rural Americans who helped Donald Trump get elected,” Dinneen said. “It appears these missteps finally caught up with Mr. Pruitt, who apparently thought that RFS stood for ‘refinery first strategy.’ Mr. Pruitt’s failure to follow President Trump’s directive to remove the red tape that restricts E15 from being sold in the summertime likely played a part in his demise, and the straw that broke the camel’s back may have been Mr. Pruitt’s recent proposal for 2019 RFS requirements that failed miserably to repair damages done to our nation’s farmers and biofuel producers.
“So, that sound you hear is a collective sigh of relief coming from the Midwest.”

Unsurprised By Tariff Action, Farmers Urge Quick Resolution

By Katie Dehlinger
DTN Farm Business Editor

Mount Juliet, Tenn. (DTN) – Soybeans represent 41% of the value of U.S. products on China’s retaliatory tariff list, and for South Dakota farmer Brandon Wipf, the financial toll adds up fast.
“You’re probably looking at over $100 an acre in loss,” he told DTN. “We have to do some thinking about purchases that we were maybe going to make that might be delayed now because there will be a portion of our crop that we’re going to have to store, potentially for a while. It starts to become a big dollar figure really quickly.”
The U.S. imposed 25% tariffs on $34 billion worth of Chinese goods as punishment for the country’s intellectual property theft and laws forcing technology transfer. Beijing responded with an equal amount of tariffs affecting more than 400 commodities, including soybeans, pork and poultry.
After months of buildup, Wipf said the news isn’t a surprise, but that doesn’t make it any more pleasant.
“If you’ve positioned yourself to be able to survive for a while without cash flow, great, but we know farm incomes are down 50% since 2013, and there’s a lot of people that aren’t in a position to do that,” he said. “I heard that farm loan rejections are up, and it could be the nail in the coffin for some individuals. Whether or not you’re personally affected by it, you certainly have to feel for those people.”
The value of U.S. soybean exports to China has grown 26-fold in 10 years, from $414 million in 1996 to $14 billion in 2017, according to the American Soybean Association. Futures prices have dropped more than $2 per bushel since talk of the tariffs began back in March.
Jim Sutter, CEO of the U.S. Soybean Export Council (USSEC), said there are real, long-term ramifications no matter how long the tariffs remain in place.
“Particularly from a reliability standpoint, to see this sort of thing happening puts a dent in our reliability armor,” he said. “I think what this does is opens the door for Brazil to continue their expansion plans.” It also gives China more reason to invest in Brazilian infrastructure to help make its transportation network more reliable.
Sutter said China’s tariffs apply to all shipments arriving in port after the tariffs were formally implemented, and he expects to see the number of cancellations rise.
“I think it’s yet to be seen whether they have to buy anything from the U.S. I’ve seen a lot of forecasts ranging anywhere from zero to 15 million metric tons perhaps of imports from the U.S. It’d be hard to imagine that they could go to zero, so I think it might be something, but it sure won’t be the same volume that we’ve seen the last few years, unless there’s some resolution to this problem.”
Sutter said there’s a long list of people who want to see a resolution to this situation, and he’s optimistic the U.S. and Chinese governments will find one, because the tariffs hurt both sides. U.S. soybean farmers will be paid a lower price for their crop, and Chinese hog producers will have to pay more for their feed, regardless of where they buy their soybeans.
As of July 6, Brazilian FOB soybean prices were 98 cents per bushel higher than prices in New Orleans.
“We’re continuing to do our work in China because we are optimistic this market’s not lost forever – that we will have an opportunity to be a supplier to that market again once this situation gets taken care of,” Sutter said. “Plus, we’re working very hard to let the rest of the world know that U.S. soy is on sale.”
He said lower prices are attracting business from a number of buyers that wouldn’t normally buy from the United States this time of year, like Egypt, Taiwan, Pakistan and a number of Southeast Asian nations. He said the USSEC is also working to build demand in markets that currently have very low meat consumption.
“We want to get into those places and really help them develop as China developed. That’s not going to happen overnight, but we think that by taking that step, and really focusing on that, it could be an important thing for long-term demand prospects for U.S. soy,” Sutter said.
While soybeans bear a large part of the value of China’s tariff burden, pork products are being hit with another burden. China already had a 12% tariff on pork products and added 25% on April 2 as retaliation for the U.S. steel and aluminum tariffs. July 6 announcement adds another 25%, bringing the overall tariff rate to 62%.
A study by Iowa State University found producers lost about $18 per pig following the April tariff hike. On an annualized basis across the industry, that adds up to $2.2 billion, and National Pork Producers Council communications director Dave Warner said it’s too soon to know what affect tariff will have.
Complicating matters is the U.S. pork industry was primed for expansion, with the U.S. expecting 8% production growth for this year and next year combined. With five new slaughter facilities under construction, packing capacity is set to increase 10%.
“All of this was done predicated on getting the TPP done and growing our exports,” he told DTN. “And of course these tariffs don’t grow it, they shrink it.”
Another issue to consider, he said, is it’s hard to find an alternative buyer for the types of pork products the U.S. sold to China, like variety and organ meats.
Warner said the pork industry recognizes what the administration is trying to accomplish with tariffs and agrees that China needs to play by the rules. But now it’s time for USDA to explain the details of how it plans to help farmers dealing with the fallout of a trade war they didn’t create, he said.

Direct Receipts

Direct Receipts: 34,300

Texas 11,700. 80 pct over 600 lbs. 35 pct heifers. Steers: Medium and Large 1 FOB Current FOB Current 450 lbs 188.00; 650-685 lbs 160.09; 725-730 lbs 142.94; 750-775 lbs 145.56; 800-810 lbs 143.14; 850 lbs 141.96; July-Aug 650 lbs 157.00; 775 lbs 148.35; Aug 600-625 lbs 159.80; 650 lbs 158.50; 750 lbs 149.70; Sept 600 lbs 162.60; 700 lbs 158.50; 750 lbs 150.41; 800 lbs 146.00; Oct 750 lbs 148.70; 800 lbs 146.80; Del Current 750 lbs 153.00; 825 lbs 141.00; 950 lbs 135.00. Medium and Large 1-2 FOB Current 570 lbs 158.83 Mex; 675 lbs 145.85; 725 lbs 146.06; 750-775 lbs 137.79; 875-895 lbs 129.26; Aug 750 lbs 142.55; 800 lbs 142.66; Del Current 515 lbs 156.90 Mex; 750-785 lbs 146.85; 805 lbs 145.00. Heifers: Medium and Large 1 FOB Current 560 lbs 153.00; 600 lbs 150.00; 650-700 lbs 143.83; 700-725 lbs 140.61; 800 lbs 133.88; July-Aug 700 lbs 145.35; Aug 575 lbs 154.00; 600-625 lbs 146.45; 675 lbs 145.50; 700-725 lbs 144.74; Sept 650-675 lbs 143.48; 700-725 lbs 141.05; 825 lbs 134.00; Oct 700 lbs 141.60; Del Current 725 lbs 140.00. Medium and Large 1-2 FOB Current 745 lbs 128.00; 750 lbs 135.91; Aug 750 lbs 132.93.

Oklahoma 1100. 100 pct over 600 lbs. 6 pct heifers. Steers: Medium and Large 1 Current 950 lbs 134.00; July 800 lbs 146.82; Sept 800 lbs 145.11. Medium and Large 1-2 Current 615 lbs 162.71; 800-825 lbs 140.92. Heifers: Medium and Large 1 Current 725 lbs 137.00.

New Mexico 700. 100 pct over 600 lbs. 39 pct heifers. Steers: Medium and Large 1 Current 750 lbs 151.00; Aug 750 lbs 151.65. Medium and Large 1-2 Current 625 lbs 144.50 Mex. Heifers: Medium and Large 1 Aug 750 lbs 139.40.

Kansas 2300. 100 pct over 600 lbs. No heifers. Steers: Medium and Large 1 FOB July-Aug 875 lbs 140.00; Del Current 615 lbs 166.00; July-Aug lbs 148.00; Sept 800 lbs 146.22. Medium and Large 1-2 Del Current 800 lbs 143.00.

National Feeder Cattle Summary

St. Joseph, MO — July 6
National feeder cattle receipts: 17,000

There were not enough feeder cattle on offer to establish a trend as the majority of auction barns took the week off in observance of Independence Day with over half of the auction receipts attributed to the drought stricken state of Missouri. Next week all the major markets will be open for business and will give an indication on trends. In the green hills of north central Missouri at Green City Livestock’s Annual Customer Appreciation Sale June 29, the heat index moved the mercury high in the thermometer and the bidding was just as hot as order buyers had to call customers and get higher bids if cattle were going to be procured. July 6 at Lexington Livestock Market in Lexington, NE over 500 head of top quality weaned, vaccinated and dewormed steers weighing 900-950 lbs sold for a weighted average of $152.45 and a top price paid in that weight category of $154. Fed cattle movement in June was strong as cattle slaughter continues moving along at a pretty good clip averaging 655K for the four full weeks in the month. Even though boxed beef values have been in a slide for the past month, negotiated cash fed cattle trade was bullish as strong packer bids surfaced July 6 morning at $112 in the Southern Plains. Southern Plains live fed cattle trading sold $5-6 higher at $112-113.50, while Nebraska dressed sales sold mostly $10-11 higher at $175-180, mostly $180. For the week, Choice cutout closed $3.93 lower at $208.03. While the Select cutout closed 0.14 higher at $198.71. The Choice-Select spread now sets at $9.32 to close the week. The heat dome that has affected much of the Northern Hemisphere recently with many record temperatures reported in the past 10 days. Moisture is much needed in the heart of the country as 49 percent of the U.S. is now classified as a D0 drought designation or worse. The May Restaurant Performance Index reported late last week posted a slight decline from the previous month at $101.2. The Creighton University Rural Mainstreet Index climbed above growth neutral in June for a fifth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since July 2015 the survey has recorded five straight months of overall indices above growth neutral.

Oklahoma 3600. 47 pct over 600 lbs. 42 pct heifers. Steers: Medium and Large 1 350-400 lbs (376) 189.80; 400-450 lbs (423) 182.16; 450-500 lbs (463) 171.48; 500-550 lbs (511) 169.07; 550-600 lbs (558) 164.47; 600-650 lbs (624) 156.92; 650-700 lbs (668) 150.07; 700-750 lbs (714) 150.89; 750-800 lbs (775) 149.52; 800-850 lbs (825) 147.37. Medium and Large 1-2 350-400 lbs (379) 183.24; 400-450 lbs (428) 173.26; 450-500 lbs (481) 161.02; 500-550 lbs (530) 155.62; 550-600 lbs (573) 153.24; 600-650 lbs (635) 138.82; 650-700 lbs (667) 148.97; 800-850 lbs (837) 142.73; 950-1000 lbs (981) 129.35. Heifers: Medium and Large 1 350-400 lbs (379) 160.87; 400-450 lbs (425) 158.33; 450-500 lbs (472) 150.68; 500-550 lbs (529) 149.82; 550-600 lbs (580) 147.53; 600-650 lbs (630) 142.35; 700-750 lbs (712) 134.04; 800-850 lbs (835) 128.90. Medium and Large 1-2 400-450 lbs (427) 148.36; 450-500 lbs (481) 143.26; 500-550 lbs (533) 138.52; 550-600 lbs (580) 130.50; 600-650 lbs (623) 131.95; 750-800 lbs (789) 131.01.

New Mexico 1200. 38 pct over 600 lbs. 44 pct heifers. There were not enough feeder cattle sales to report.

Missouri 8800. 57 pct over 600 lbs. 47 pct heifers. Steers: Medium and Large 1 400-450 lbs (437) 178.69; 450-500 lbs (473) 180.77; 500-550 lbs (522) 176.32; 550-600 lbs (576) 168.65; 600-650 lbs (623) 164.66; 650-700 lbs (674) 160.08; 700-750 lbs (709) 153.08; 750-800 lbs (771) 146.20; 800-850 lbs (826) 146.02; 850-900 lbs (871) 145.73; 900-950 lbs (926) 139.31. Medium and Large 1-2 400-450 lbs (406) 166.81; 450-500 lbs (468) 166.44; 500-550 lbs (534) 156.76; 550-600 lbs (574) 155.99; 700-750 lbs (717) 150.43; few loads 808 lbs 141.37;few loads 870 lbs 138.00; 900-950 lbs (909) 135.34. Holstein Steers: Large 3 part load 566 lbs 90.00. Heifers: Medium and Large 1 350-400 lbs (384) 157.74; 400-450 lbs (431) 158.19; 450-500 lbs (470) 153.75; 500-550 lbs (519) 152.44; 550-600 lbs (580) 149.54; 600-650 lbs (620) 148.35; 650-700 lbs (674) 143.06; 700-750 lbs (715) 140.91; 750-800 lbs (775) 136.12; 850-900 lbs (870) 132.83; few loads 935 lbs 124.75. Medium and Large 1-2 300-350 lbs (322) 161.28; 350-400 lbs (393) 152.18; 400-450 lbs (437) 149.04; 450-500 lbs (475) 145.36; 500-550 lbs (523) 144.96; 550-600 lbs (583) 137.76; 650-700 lbs (673) 140.79; few loads 704 lbs 142.75;750-800 lbs (757) 139.65.

 

 

 

 

 

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Friday, July 13, 2018 1:54 PM