Feed cost shift could trim feeder cattle imports
A recent shift in feed costs now makes it likely that fewer feeder cattle will be coming into the U.S. from Canada, a market analyst said.
Troy Vetterkind, director of livestock analysis and trading at Vetterkind Cattle Brokerage, said feed barley prices in Canada have declined over the last couple of weeks to the point where the cost of weight gain is slightly less in Canada than in the U.S.
Vetterkind referred to calculations from a cattle feeder in Canada who said the cost of gain at his feedyard is roughly 93 to 95 cents a pound, compared to a cost of gain in the U.S. of $1 to $1.05 and moving higher with rising corn costs.
Relative costs at other feedlots could be different depending on corn or barley positions.
Up until the decline in barley prices the situation had been just the opposite and despite record-high corn prices that are above $7 a bushel, it was cheaper to feed cattle in the U.S. than in Canada, market analysts and brokers said.
That's why U.S. feeder cattle imports from Canada are at record levels for the year, and a reason for a year-to-date decline in the number of fed cattle destined for immediate slaughter, the analysts said.
In its latest report, the U.S. Department of Agriculture reported that through June 19, the U.S. had imported 340,909 feeder steers and heifers, up from 198,281 in the same period a year earlier.
Daniel Bluntzer, livestock market analyst at Frontier Risk Management, said this year's imports are "two to three times the normal pace of imports, which means it was 5,000 per week and is now 15,000."
State veterinarians discuss brucellosis concerns
Helena, Mont. (AP) - State veterinarians from Montana, Idaho and Wyoming say cattle will continue to be plagued by a livestock disease as long as it remains prevalent in wildlife in and around Yellowstone National Park.
The state officials met June 27 in Helena to discuss ways of jointly dealing with cases of brucellosis, a disease that can cause pregnant cows to abort their calves. The disease is dreaded by the livestock industry because it is expensive to eradicate and creates problems for ranchers attempting to export cattle.
Montana and Wyoming are in the midst of investigations to determine the cause of recent infections. Montana is losing its prized brucellosis-free status after a second case in less than two years. Wyoming could also lose its status if another cow tests positive.
The veterinarians said cattle in a danger zone around Yellowstone National Park will continue to get the disease as long as it remains in the park's bison and elk herds. They said more federal money has to be spent on a practical vaccine for wildlife, and the park must get serious about managing the herd.
All states face more cases until that happens, said Montana state veterinarian Marty Zaluski.
"It is sad to admit that," Zaluski said at Friday's meeting. "But that is the situation."
Cattlemen backing rancher with diseased cows
Cheyenne, Wyo. (AP) - Wyoming livestock and animal health officials said June 27 that most cattlemen have expressed support for the western Wyoming rancher whose cows tested positive for brucellosis.
Wyoming state veterinarian Walter Cook said the Daniel-area rancher with the infected cattle is having a hard time deciding whether to slaughter all his cattle.
If the rancher doesn't slaughter the herd, federal rules call for Wyoming to lose its brucellosis-free status. That would result in strict testing requirements for Wyoming cattle before they're exported to other states.
"It's going to be his choice," Cook said at a Helena, Mont., meeting of livestock officials from Wyoming, Montana and Idaho. "We can't force him to do it."
The rancher, whose name has not been released publicly, will have 60 days starting next week to make a decision about "depopulating" his herd. Brucellosis has only been found in a small percentage of the herd.
But Cook said many cattlemen have argued that it would be pointless for the rancher to make up his mind about slaughtering the herd yet. The state's epidemiological investigation into surrounding herds is just beginning.
If a second herd is found to contain brucellosis, that would also cause Wyoming to lose its brucellosis-free status, according to federal rules.
Cook said he expects that to happen. "I truly think that Wyoming will lose its status again. It's only a matter of time."
Cattlemen open relief effort for farms and ranches devastated by Midwest flooding
The National Cattlemen's Foundation, in cooperation with the National Cattlemen's Beef Association (NCBA), has launched a disaster relief effort to assist farm and ranch families impacted by catastrophic flooding in the Mississippi River corridor and surrounding areas.
Thousands of family farm and ranch operations in Iowa, Missouri, Indiana, Illinois, and Wisconsin have been devastated by flooding caused by persistently heavy rains and subsequent levee failures on the Mississippi River and other major waterways. Many families have been completely displaced from their homes, or remain without power, potable water, and other utilities. Crop losses are enormous, including hay and forage normally used for livestock feed, as well as crops targeted for fall harvest. Downed fences and other property damage have also resulted in stranded and lost livestock, with thousands of farmers and ranchers struggling to make repairs and keep their operations functioning as well as possible.
NCBA is joining forces with state cattlemen's associations across the nation to provide assistance through the National Cattlemen's Foundation. Every dollar contributed will directly assist families struggling to keep their farms and ranches operating under these difficult conditions. In conjunction with the foundation, state cattlemen's associations from states in the affected region will manage distribution of all funds donated.
