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Over My Shoulder

published: February 5th 2010
by: J.D. Sartwelle, Jr.

January ushered in the new year with better long-range weather prognostications and less than usual expectations about our industry and our economy.  By end of month with more than ample rainfall, the prospects for a good spring were emerging; and there were end of month signs of regaining our political health and even the economy saw improving indicators.  What do they say? It’s always darkest before dawn, well hooray for dawn coming.

January weather for the entire month was weather not seen in several years.  West to East and North to South, no area seemed to be spared from excessive rain, snow, ice, or temperatures that caused much concern in livestock land and in southern areas of citrus production.  It wasn’t an easy month; livestock markets were generally stronger while grain softened.  Outside work took a back seat cause of temps or rain or flat out snowy, wet, muddy conditions.  It was an eventful month in other ways, the big news in Washington was still the economy, health care, senatorial elections, trade disputes, and confirmation hearings while here at home the gubernatorial election season took off like a big bird.

There was ag and livestock news out of the capitol as the month started with Taiwan backtracking on the late year agreement to allow expanded market access for U.S. beef.  Leaders in the House Ways and Means committee urged the Administration to put pressure on Taiwan through the U.S. Trade Representative.  In other export news, late year increases in exports were encouraging but the year still ended with total exports being less than the year before.  South Korea led the late year surge.  Also out of the capitol came USDA revision of the 2009 corn crop that indicated more corn than previously thought to end the year with a 13.2 billion bushel crop and establish a new record yield of 165.2 bushels per acre.  The national ID programs is back on the radar as several livestock groups have banded together to present a statement of 12 principles to USDA and to congress.  The statement stressed confidentiality, minimum costs, operate at the speed of commerce, and be voluntarily phased in over time.  

A new industry self-help initiative has been a new video developed by the Texas Beef Counsel and Texas Farm Bureau that will put a New Face on the Beef Industry.  It utilizes beef producers to tell the modern beef production story to consumers with the goal of education and understanding.

Here at home, the month started cold, then came the moisture and made for some tough conditions.  Outside work was hampered and in many cases was relegated to fixing pipes, working on wells, and feeding cattle.  In the feedyards, with snow, ice and then mud, performance suffered but markets took on stronger tones until the end of the month when there just wasn’t much activity.  During the month though, movement was fairly heavy while packers saw increases in drop credits because of strengths in the hide, tallow, pet foods, and meat and bone meal markets.  The month started with fed cattle prices in the lower to mid eighties and saw a rise to $86.00 before making no trades the last days of the month.

At our local markets, the month saw heavier than usual numbers, partially due to more hold over cattle that were prevented from being marketed because of end of year weather.  The market started slow but was fast to pick up and by end of month saw the heavy calves higher by several dollars and the lighter weights higher by a lot more.  Slaughter cows and bulls picked up steam as the month progressed and ended a few dollars higher than they started.

Slaughter hog numbers backed off slightly during the month and most top weight porkers sold mid to high forties.  Weekly numbers still are over two million head each week but are below year ago numbers.

An improving economy bringing on better domestic demand and expanded exports are what our industry needs.  First things first though, let’s get spring here with more moisture over a wider area so that we can see a better production year than the last few.  Come on February.