March 16, 2018 Tennessee Market Highlights Number: 11

FED CATTLE: Fed cattle traded steady to $1 higher compared to a week ago on a live basis. Prices on a live basis were mainly $127 to $128 while dressed prices were mainly $205 to $206.

The 5-area weighted average prices thru Thursday were $127.94 live, up $1.18 from last week and $205.81 dressed, up $1.97 from a week ago. A year ago prices were $128.75 live and $208.01 dressed.

Despite all the rumblings of the high cattle on feed numbers and the soon to be glut of beef on the market, finished cattle prices continue to find support. Sure, this is the first week in which finished cattle prices dipped below year ago prices from the same week since mid-September of last year, but finished cattle have consistently traded in the $125 to $130 price range for eight consecutive weeks. It is difficult to imagine at this juncture that fed cattle pric-es can make a run like they did one year ago into the May and June timeframe and trade over $130 for nine consecutive weeks, and such an occurrence would be surprising. However, analysts have consist-ently underestimated the strength of beef demand.

BEEF CUTOUT: At midday Friday, the Choice cutout was $225.72 up $0.73 from Thursday and up $2.96 from last Friday. The Select cutout was $217.91 up $0.86 from Thursday and down $0.74 from last Friday. The Choice Select spread was $8.55 com-pared to $6.71 a week ago.

Wholesale beef prices have continued to push higher though the push is a little earli-er than normal. Choice and Select cutouts have gained $15 and $12 respectively in the past four weeks following flat trade the first month and a half of 2018. Higher cutout prices are being driven by the rib and loin primal which is to be expected as the mar-ket moves closer to grilling season. Rib pri-mal values last week were nearly $44 per hundredweight higher than the same week

one year ago while loin primal values were $9 softer over the same time period. What is a little more surprising is the strength in the chuck and brisket. The chuck primal was $15 higher than the same week last year while the brisket was $54 per hun-dredweight higher. The increase in brisket value represents a 33 percent increase in brisket value which definitely provides sup-port. What is driving support for chuck and brisket at this time? Could it be the an-nouncement by McDonalds to serve only fresh beef in its quarter pound burgers? More information will have to be revealed before there is a clear answer.

OUTLOOK: Losses of $9 to $12 on spring and summer feeder cattle futures contracts in the past four weeks has put a damper on many producers’ attitudes. Fall and winter contracts have only declined $7 over the same time period, but the sentiment would be that they have time to fall further. Look-ing at support, the May contract is only a couple of dollars higher than a major sup-port point just above $139. Does this sup-port mean the May feeder cattle contract will not decline further or push lower than the support price? The simple answer is no, but it will take a lot of negative sentiment across the industry for prices to continue pushing lower than the established sup-port. Though feeder cattle futures s have softened the past four weeks which has placed weakness in the cash feeder cattle market, the same cannot be said for the calf market. Warm temperatures, signifi-cant rainfall, and a greening of pastures locally have many summer stocker opera-tions in heated competition to secure calves for spring and summer grazing. The prices being paid today for calves will be difficult to turn into positive margins unless the feeder cattle market reverses course and begins strengthening. Based on Ten-nessee weekly auction averages, steer pric-es were $3 to $5 lower compared to one

(Continued on page 2)

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

Slaughter Cows

Steady to $2 lower

Slaughter Bulls

$2 to $3 lower

Feeder Steers

$3 to $5 lower

Feeder Heifers

Steady to $2 lower

Feeder Cattle Index

Wednesday’s index: 142.81

Fed Cattle

The 5-area live price of $127.94 is up $1.18. The dressed price is up $1.97 at $205.81.

Corn

May closed at $3.82 a bushel, down 8 cents since last Friday.

Soybeans

May closed at $10.49 a bushel, up 10 cents since last Friday.

Wheat

May closed at $4.67 a bushel, down 22 cents since last Friday.

Cotton

May closed at 82.85 cents per lb, down 1.67 cents since last Friday.

2

week ago while heifer prices were steady to $2 lower com-pared to last week. Similarly, slaughter cow prices were steady to $2 lower than last week. Readers should not let the trends this week fool them as lightweight calf prices are extremely strong. Steers weighing between 450 and 650 pounds averaged $825 to $950 per head which should be profitable for many cow-calf producers. The market has been very seasonable this year and is another sign of the market’s slow move to seasonal tendencies. Producers with calves ready to be marketed should probably do so sooner rather than later as prices will soften as the market moves through the spring and summer months.

ASK ANDREW, TN THINK TANK: A couple of weeks ago, Dean Foods announced they were discontinuing milk contracts with 100 or so dairies which included a dozen or so operations in Tennessee. Essentially, the dairies impacted have until the end of May to find a new outlet for their milk or they will be forced to exit the industry due to having no method to market milk. This has brought several questions across my email and through personal communication. From the beef sector side, this could have an implication on beef markets if all of these dairy operations are forced to sell out. One would imagine these dairy operations would be able to market heifers and some of the young fresh cows. However, there would likely also be a short-term glut of slaughter cows in the region. From an-other standpoint, some of these dairies might consider beef cattle production as an alternative. The resources these dairies have could lend itself to backgrounding feeder cattle or a con-fined beef cattle operation.

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 –April $121.25 -0.60; June $111.75 -0.55; August $109.13 -0.68; Feeder cattle –March $139.98 -0.65; April $140.20 -0.63; May $140.95 -0.65; August $146.25 -0.25; March corn closed at $3.83 down $0.04 from Thursday.

(Continued from page 1)

Livestock Comments by Dr. Andrew Griffith

Thursday March 15, 2018

Month Class III Close Class IV Close

Mar 14.30 13.24

Apr 14.12 13.36

May 14.15 13.56

June 14.55 13.82

July 15.16 14.07

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 116,500 460,000

Last week (4 days) 116,750 456,000

Year ago (4 days) 114,000 439,750

This week as percentage of

Week ago (%) 100% 101%

Year ago (%) 102% 105%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 224.99 216.31

Last Week 223.88 216.78

Year ago 221.32 213.14

Change from week ago +1.11 -0.47

Change from year ago +3.67 +3.17

3

Crop Comments by Dr. Aaron Smith

Overview Corn, cotton, and wheat were down; soybeans were up for the week. This week, on Wednesday, December corn peaked at $4.12 the highest offer-ing, for the December 2018 contract, since August 10, 2017. However, prices declined 8 ¼ cents on Thursday and Friday. Futures prices above $4 per bush-

el represents a good opportunity to start / increase pricing on the 2018 crop. Securing a price on up to 50% (depending on pricing method) of anticipated production should be considered prior to planting. This week November soybeans continued to exhibit volatility. For the week daily trading ranges on the November contract were: 12 ½ cents, 8 ¾ cents, 17 ¾ cents, 14 ¾ cents, and 8 ¼ cents. In the near future volatility is likely to continue due to uncertainty about the Argentinian crop, U.S. planted acreage, and export sales / trade negotiations. December 2018 cotton futures established a new contract high this week at 78.94 cents. Nine months ago December 2018 cotton was trading 12 cents lower near 66 cents, a remarkable change in prices. Strong export sales and global demand have drug both the nearby and harvest contracts higher. July wheat continued its short term down trend. On March 2, July wheat peaked at $5.31 ¾, since then prices have declined 36 ¾ cents. Prices have been supported by drought concerns in the Southern Plains, however large global supplies and expanding do-mestic stock projections, as a result of tepid export sales, continue to provide fuel for further price declines. Corn Across Tennessee, average corn basis (cash price-nearby futures price) weakened or remained unchanged at Memphis, Northwest Barge Points, Northwest, and Upper-middle Tennessee and strengthened at Lower-middle Tennessee. Overall, basis for the week ranged from 12 under to 34 over the May futures contract with an average of 1 over at the end of the week. May 2018 corn futures closed at $3.82 down 8 cents since last Friday. For the week, May 2018 corn futures traded between $3.82 and $3.95. Corn net sales reported by exporters from March 2-8 were above expectations with net sales of 98.6 million bushels for the 2017/18 mar-keting year and 3.9 million bushels for the 2018/19 marketing year. Exports for the same time period were up from last week at 55.4 million bushels. Corn export sales and commitments were 77% of the USDA estimated total annual exports for the 2017/18 marketing year (September 1 to August 31) compared to a 5-year average of 77%. Ethanol production for the week ending March 9 was 1.025 million barrels per day, down 32,000 from the previous week. Ethanol stocks were 24.281 million barrels, up 1.137 mil-lion barrels. May/Jul and May/Dec future spreads were 9 and 21 cents, respectively.

July 2018 corn futures closed at $3.91, down 7 cents since last Friday. In Tennessee, September 2018 corn cash forward contracts averaged $3.90 with a range of $3.80 to $4.14. December 2018 corn futures closed at $4.03, down 4 cents since last Friday. Down-side price protection could be obtained by purchasing a $4.10 December 2018 Put Option costing 29 cents establishing a $3.81 fu-tures floor. Soybeans Average soybean basis strengthened or remained unchanged at Northwest and Lower-middle Tennessee and weakened at North-west Barge Points, Memphis, and Upper-middle Tennessee. Basis ranged from 48 under to 3 under the May futures contract at

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

elevators and barge points. Average basis at the end of the week was 24 under the May futures contract. May 2018 soybean fu-tures closed at $10.49, up 10 cents since last Friday. For the week, May 2018 soybean futures traded between $10.27 and $10.54. Net sales reported by exporters were above expectations with net sales of 46.6 million bushels for the 2017/18 marketing year and 2.8 million bushels for the 2018/19 marketing year. Exports for the same period were down from last week at 33.1 million bushels. Soybean export sales and commitments were 88% of the USDA estimated total annual exports for the 2017/18 marketing year (September 1 to August 31), compared to a 5-year average of 93%. May soybean-to-corn price ratio was 2.75 at the end of the week.

May/July and May/Nov future spreads were 11 and -8 cents, respectively. July 2018 soybean futures closed at $10.60, up 12 cents since last Friday. In Tennessee, Oct/Nov 2018 soybean cash contracts average $10.18 with a range of $9.89 to $10.50. November 2018 soybean futures closed at $10.41, up 11 cents since last Friday. Downside price protection could be achieved by purchasing a $10.60 November 2018 Put Option which would cost 68 cents and set a $9.92 futures floor. November/December 2018 soybean-to-corn price ratio was 2.58 at the end of the week. Cotton Delta upland cotton spot price quotes for March 15 were 82.53 cents/lb (41-4-34) and 84.28 cents/lb (31-3-35). Adjusted world price (AWP) increased 0.99 cents to 75.12 cents per pound. May 2018 cotton futures closed at 82.85 cents, down 1.67 cents since last Friday. For the week, May 2018 cotton futures traded between 82.04 and 85.03 cents. Net sales reported by exporters were down from last week with net sales of 321,400 bales for the 2017/18 marketing year and 199,200 bales for the 2018/19 marketing year. Exports for the same period were down from last week at 414,400 bales. Upland cotton export sales were 101% of the USDA estimated total annual exports for the 2017/18 marketing year (August 1 to July 31), compared to a 5-year average of 87%. May/Jul and May/Dec cotton futures spreads were 0.13 cents and -4.57 cents, respectively.

July 2018 cotton futures closed at 82.98, down 1.21 cents since last Friday. December 2018 cotton futures closed at 78.28, down 0.44 cents since last Friday. Downside price protection could be obtained by purchasing a 79 cent December 2018 Put Option costing 5 cents establishing a 74 cent futures floor. Wheat In Memphis, old crop cash wheat ranged from $4.94 to $5.01. May 2018 wheat futures closed at $4.67, down 22 cents since last Friday. May 2018 wheat futures traded between $4.67 and $4.98 this week. May wheat-to-corn price ratio was 1.22. Wheat net

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

sales reported by exporters were below expectations with net sales of 6.0 million bushels for the 2017/18 marketing year and 2.1 million bushels for the 2018/19 marketing year. Exports for the week were down from last week at 12.3 million bushels. Wheat export sales were 89% 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 96%. May/Jul and May/Sep future spreads were 18 cents and 35 cents, respectively.

In Tennessee, June/July 2018 cash forward contracts ranged from $4.81 to $5.32 for the week. July wheat-to-corn price ratio was 1.24. July 2018 wheat futures closed at $4.85, down 20 cents since last Friday. Downside price protection could be obtained by purchasing a $4.90 July 2018 Put Option costing 26 cents establishing a $4.64 futures floor. September 2018 wheat futures closed at $5.02, down 20 cents since last Friday. Additional Information: Links for data presented:

U.S. Export Sales - https://apps.fas.usda.gov/export-sales/esrd1.html

USDA FAS: Weekly Export Performance Indicator – https://apps.fas.usda.gov/esrquery/esrpi.aspx

EIA: Weekly ethanol Plant Production - https://www.eia.gov/dnav/pet/pet_pnp_wprode_s1_w.htm

EIA: Weekly Supply Estimates - https://www.eia.gov/dnav/pet/pet_sum_sndw_a_EPOOXE_sae_mbbl_w.htm

Upland Cotton Reports - https://www.fsa.usda.gov/FSA/epasReports?area=home&subject=ecpa&topic=fta-uc

Tennessee Crop Progress - https://www.nass.usda.gov/Statistics_by_State/Tennessee/Publications/Crop_Progress_&_Condition/

U.S. Crop Progress - http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1048

USDA AMS: Market News - https://www.ams.usda.gov/market-news/search-market-news

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, March 9, 2018 — Thursday, March 15, 2018

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Mar 10.29 10.33 10.40 10.28 10.40

($/bushel) May 10.39 10.41 10.48 10.32 10.51

Jul 10.48 10.51 10.59 10.43 10.52

Aug 10.49 10.52 10.60 10.44 10.40

Sep 10.37 10.41 10.49 10.34 10.33

Nov 10.30 10.36 10.44 10.28 10.36

Corn Mar 3.83 3.84 3.85 3.83 3.86

($/bushel) May 3.90 3.90 3.91 3.88 3.94

Jul 3.98 3.98 3.99 3.96 4.00

Sep 4.02 4.02 4.04 4.02 4.06

Dec 4.07 4.07 4.09 4.07 4.13

Mar 4.13 4.14 4.16 4.14 4.17

Wheat Mar 4.89 4.89 4.85 ——— ———

($/bushel) May 4.89 4.90 4.86 4.88 4.78

Jul 5.05 5.07 5.04 5.06 4.96

Sep 5.22 5.23 5.21 5.22 5.12

Dec 5.42 5.43 5.41 5.43 5.33

Soybean Meal Mar 371 369 372 368 371

($/ton) May 373 370 375 370 372

Jul 375 372 377 372 369

Aug 372 370 374 369 367

Sep 369 368 372 367 364

Oct 365 365 369 364 363

Cotton May 84.52 83.28 82.98 83.44 83.53

(¢/lb) Jul 84.19 83.21 82.86 83.20 83.60

Oct 79.88 79.88 79.57 79.20 79.51

Dec 78.72 78.72 78.49 78.02 78.19

Mar 78.80 78.83 78.67 78.20 78.37

Live Cattle Apr 123.12 121.55 121.90 123.00 121.85

($/cwt) Jun 114.30 113.27 113.15 113.25 112.30

Aug 111.65 110.82 110.77 110.77 109.80

Oct 114.40 114.05 113.70 113.70 112.60

Dec 117.50 117.10 116.62 116.80 115.62

Feeder Cattle Mar 142.52 142.17 141.55 142.05 140.62

($/cwt) Apr 143.15 142.57 142.30 142.72 140.82

May 144.65 144.10 143.12 143.62 141.60

Aug 149.75 149.07 148.05 148.80 146.50

Sep 150.62 150.20 149.25 149.72 147.62

Oct 150.55 150.32 149.37 149.70 147.67

Market Hogs Apr 67.85 67.67 67.72 66.87 65.72

($/cwt) May 72.00 71.22 71.85 72.05 72.75

Jun 77.67 77.05 77.47 78.35 79.17

Jul 78.55 77.97 78.42 79.55 80.50

Aug 78.77 78.32 78.72 80.10 81.05

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 8,348 () Week ago: 7,096 (8) Year ago: 4,121 (8)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

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

Steers: Medium/Large Frame #1-2

300-400 lbs 159.00 212.50 181.08 186.15 164.97

400-500 lbs 157.00 185.00 175.85 177.88 153.24

500-600 lbs 141.00 182.50 161.92 165.95 141.97

600-700 lbs 130.00 165.00 147.59 149.63 131.62

700-800 lbs 122.00 147.00 137.39 141.07 120.19

Steers: Small Frame #1-2

300-400 lbs 156.00 180.00 169.16 170.03 141.30

400-500 lbs 147.50 165.00 156.69 159.40 130.77

500-600 lbs 134.00 148.00 142.59 143.95 ———

600-700 lbs 122.00 145.00 131.46 139.98 ———

Steers: Medium/Large Frame #2-3

300-400 lbs 146.00 180.00 166.88 174.61 147.43

400-500 lbs 145.00 173.00 158.26 166.72 137.24

500-600 lbs 136.00 167.00 149.48 152.49 126.64

600-700 lbs 128.00 150.00 133.27 139.97 120.26

700-800 lbs 121.00 133.00 128.59 123.36 110.85

Holstein Steers

300-400 lbs ——— ——— ——— ——— ———

500-600 lbs ——— ——— ——— ——— ———

700-800 lbs ——— ——— ——— ——— ———

Slaughter Cows & Bulls

Breakers 75-80% 54.00 58.46 59.82 62.54 67.00

Boners 80-85% 61.34 62.92 61.04 52.50 70.00

Lean 85-90% 45.00 68.00 53.67 54.98 56.65

Bulls YG 1 75.50 94.50 86.01 88.81 87.52

Heifers: Medium/Large Frame #1-2

300-400 lbs 140.00 180.00 157.94 161.24 141.79

400-500 lbs 130.00 169.00 151.06 152.85 133.83

500-600 lbs 127.00 157.00 142.90 142.66 123.50

600-700 lbs 115.00 150.00 127.85 132.96 114.11

Heifers: Small Frame #1-2

300-400 lbs 131.00 150.00 144.41 142.40 125.68

400-500 lbs 128.00 146.00 136.09 134.40 117.89

500-600 lbs 118.00 138.00 126.19 133.65 107.08

600-700 lbs 112.00 120.00 115.77 123.40 98.35

Heifers: Medium/Large Frame #2-3

300-400 lbs 132.50 167.50 147.48 152.19 130.37

400-500 lbs 121.00 152.00 140.62 140.82 124.51

500-600 lbs 118.00 143.00 132.53 132.76 114.83

600-700 lbs 107.50 130.00 121.17 126.52 99.92

Prices on Tennessee Reported Livestock Auctions for the week ending March 16, 2018

8

Friday, March 9, 2018 — Thursday, March 15, 2018

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

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

No. 2 Yellow Soybeans

Memphis 10.37-10.39 10.37-10.38 10.42-10.42 10.24-10.27 10.32-10.35

N.W. B.P. ——— 10.26-10.30 10.31-10.36 10.15-10.19 10.19-10.25

N.W. TN ——— 10.06-10.07 10.08-10.13 9.92-9.97 10.00-10.06

Upper Md. ——— 10.01-10.31 10.08-10.38 9.91-10.22 9.96-10.30

Lower Md. ——— 9.93-10.16 10.01-10.23 9.84-10.07 9.93-10.15

Yellow Corn

Memphis 4.04-4.07 4.07-4.08 4.01-4.06 3.94-3.98 3.92-3.96

N.W. B.P. ——— 3.97-4.01 3.95-3.99 3.91-3.93 3.85-3.91

N.W. TN ——— 3.80-3.96 3.82-3.97 3.78-3.94 3.76-3.92

Upper Md. ——— 3.80-3.90 3.81-3.91 3.78-3.88 3.76-3.86

Lower Md. ——— 3.79-4.25 3.80-4.26 3.79-4.23 3.77-4.21

Wheat

Memphis 4.99-4.99 5.00-5.00 4.94-4.94 ——— ———

Prices Paid to Farmers by Elevators

100

120

140

160

180

200

220

Tennessee 500-600 lbs. M-1 Steer Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 2018

85

105

125

145

165

185

Tennessee 700-800 lbs. M-1 Steers Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 201 8

8595

105115125135145155

5-Area Finished Cattle Prices2017, 2018 and 5-year average

2012/2016 Av g 2017 2018

35455565758595

105

Tennessee Slaughter Cow PricesBreakers 75-80%

2017, 2018 and 5-year average

1.00 2017 2018

9

Blue Grass Stockyards - March 13, 2018 1 load of 60 steers; mostly blk/bwf; est wt. 850 lbs.; $134.50 1 load of 60 steers; blk/bwf; est. wt. 850 lbs.; $136.00 Athens Stockyard - March 13, 2018 1 load of Holstein steers; est. wt. 975 lbs.; $91.60 1 load of heifers; mixed; est. wt. 790 lbs.; $122.50 1 load of steers; mixed; est. wt. 890 lbs.; $129.50 East Tennessee Livestock Center - March 14, 2018 1 load out of 100 steers; BQA certified producer; est. wt. 825 lbs.; 100% L&M-1s; medium flesh; 100% black/BWF; $136.50 Hardin County Stockyard - March 14, 2018 1 load of 70 steers; M&L-1&2s; est. wt. 712 lbs.; medium flesh; mixed; $142.50 2 loads of 122 heifers; M&L-1-2s; est. wt. 793 lbs.; medium flesh; mixed; $125.00

East Tennessee Livestock Center, Sweetwater, TN Graded Holstein Steer Report for Friday Mar 9, 2018 Cattle Receipts: 899 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 03/09/2018 Receipts: 342 For complete report: https://www.ams.usda.gov/mnreports/nv_ls184.txt

3/13/18 TN Livestock Producers Fayetteville Receipts: 601 (330 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 180.00-187.00 300-400 lbs 153.00-160.00 400-500 lbs 171.00-176.00 400-500 lbs 153.00-161.50 500-600 lbs 150.00-165.00 500-600 lbs 140.50-150.00 700-800 lbs 131.50-133.00 600-700 lbs 125.00-130.00 800-900 lbs 120.00-128.00 800-900 lbs 116.00 Bulls: Med & Lg 1-2 400-500 lbs 174.00-180.00 500-600 lbs 146.50-154.50 600-700 lbs 127.00 700-800 lbs 124.50

Video Sales & Loads Self-Reported and Self-Graded Livestock Markets

3/9/18 Coffee County Livestock Market Graded Goat and Sheep Sale Manchester, TN Receipts: 576 (316 Goats; 260 Sheep) Next Sale Mar 23, 2018 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 301.00 250.00-285.00 226.00 31-45 lbs 275.00-280.00 262.00-270.50 239.00-248.00 46-60 lbs 280.00-285.00 265.00-279.00 230.00-235.00 61-80 lbs 210.00-250.00 200.00 81-100 lbs 185.00 170.00 Feeders 202.00-300.00 Yearlings 140.00-200.00 Nannies 130.00-180.00 Nannies Thin 100.00-120.00 Billies 140.00-150.00 Billies Thin 124.50-130.00 SHEEP: Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt). Choice and Prime 20-40 lbs 250.00-270.00 Good 193.00-241.00 Choice and Prime 40-60 lbs 229.00-253.00 Good 200.00-20.00 Choice and Prime 60-80 lbs 211.50-221.00 Good 200.00 Choice and Prime 80-100 lbs 180.00-190.00 Good 180.00 Choice and Prime 100-120 lbs 151.00-159.00 Feeders 181.00-220.00 Yearlings 130.00 Ewes 105.00-136.00 Rams 90.00-101.00

Columbia Graded Sheep and Goat Sale Weighted Average Report for 03/12/2018 Receipts: 562 (410 goats; 152 sheep) Last Sale: 427 Next Sale March 26, 2018 (Second and fourth Monday of each month) For complete report: https://www.ams.usda.gov/mnreports/nv_ls320.txt

Video Board Sale and Graded Sales

Graded Sheep and Goat Auction

Self-Reported and Self-Graded Livestock Markets

10

Fertilize Fields with Hay Frank Wardynski, Michigan State University Extension

March 15, 2018

Many Beef cow-calf producers feed hay rations to cows in con-finement settings during the winter months. Feeding hay on fields away from the barn is gaining popularity. Labor and ma-chinery requirements of hauling manure can be minimized by winter-feeding beef cattle on fields. Care should be taken with feeding practices to ensure that crop nutrients are evenly dis-tributed.

Feeding on fields is typically accomplished by strategically spac-ing hay bales around the field either with or without hay rings frequently referred to as bale grazing. Another feeding method on fields includes unrolling bales on the ground. Unrolling bales on the ground typically allows for better crop nutrient distribu-tion. Spacing bales across a field creates a situation of concen-trated nutrients from manure and waste hay in the areas where bales are fed. Over time, nutrient distribution can equal-ize with good grazing and management practices to promote soil health. Nutrients can be distributed by livestock and soil microbes over time, however, uniform nutrient spreading is more ideal for crop production yields.

Utilizing the various feeding methods can result in a wide range of hay waste. Producers need to weigh cost savings associated with winter feeding on fields and feed loss with any given feed-ing method. Feeding on fields allows nearly 100 percent nutri-ent cycling into the soil for both phosphorous and potassium while nitrogen capture will be variable. Consequently, hay waste is not a 100 percent loss. Much of the crop nutrients from hay waste is available to the next growing crop. If hay is harvested on the farm, nutrients are simply redistributed to the feeding area. If hay is purchased, those nutrients are added into the farm nutrient pool.

Purchasing hay and bringing nutrients onto the farm can be a cost effective addition of fertilizer to the farm. The vast majori-ty of fertilizer costs for crop production are for application of nitrogen, phosphorous and potassium. Producers should use a feed analysis of purchased feed to determine its fertilizer value. Producers can use dry matter, crude protein, phosphorous and potassium content to determine fertilizer value. Table 1. demonstrates the calculations of converting an example feed

Beef Industry News Featured Article from DROVERS

analysis to the quantities of fertilizer nutrients in a 1000 lb. bale of hay. Using an example of dry hay containing 85 percent dry matter, 10.6 percent crude protein, 0.18 percent phosphorous and 1.6 percent potassium content, the following value can be calculated:

Dry feeds will usually contain 10-15 percent moisture or 85-90 percent dry matter. A 1000 lb. bale of dry hay with 15 percent moisture will contain 850 lb. of dry matter. Ensiled feeds will contain considerably more moisture.

Protein contains 16 percent nitrogen. Crude protein is calculat-ed by multiplying the percent nitrogen by a conversion multipli-er of 6.25. From the example hay analysis, 10.6 percent crude protein can be multiplied by 0.16 or divided by 6.25 to equal a rounded off 1.7 percent nitrogen. The nitrogen content multi-plied by the dry hay bale weight of 850 lb. equals 14.45 lb. of nitrogen in the bale of hay. The percent phosphorous (0.18 percent) and potassium (1.6 percent) are also multiplied by the 850 lb. of dry matter hay to equal 1.53 lb. of phosphorous and 13.6 lb. of potassium.

Producers must be aware of the differences between feed anal-ysis and fertilizer analysis. Feed analysis are recorded as per-cent crude protein, elemental phosphorous, and elemental potassium. Fertilizer analysis is recorded as percent elemental nitrogen, phosphate (P2O5), and potash (K2O). Using Upper Pen-insula of Michigan fertilizer prices, nitrogen is valued at $0.47/lb. N, phosphate at $0.35/lb. of P2O5, and potash at $0.325/lb. K2O.

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Department of Agricultural and Resource Economics 314 Morgan Hall • 2621 Morgan Circle

arec.tennessee.edu USDA / Tennessee Department of Agriculture Market News Service http://www.tennessee.gov/agriculture/article/ag-farms-market-news 1-800-342-8206