Tuesday, October 11, 2011
Strong Hog Prices Offset Feed Cost Concerns
CANADA - A partner with Gowan's Feed Consulting reports strong hog prices are helping offset some of the concerns of western Canadian pork producers over high feed costs creating some optimism moving into the fall and heading toward winter, Bruce Cochrane writes.


Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

As the result of the difficult 2011 growing season, the cost of the various ingredients contained in rations for feeding swine have been extremely volatile heading into the fall.

Neil Campbell, a partner with Gowan's Feed Consulting notes, while feed ingredient costs typically come down following the fall harvest, prices have not come down as much as pork producers would have liked.

Neil Campbell-Gowan's Feed Consulting
Recently we have seen the cost of corn starting to come down and that is pressuring barley and wheat out of the rations in Manitoba.

The wheat price and the barley price, interestingly in Alberta and Saskatchewan, haven't really been following corn down.

They've stayed pretty stable which is a bit of a surprise in light of the fact that we didn't see much for harvest pressure this year on the price and our price really hasn't moved too much over the last few months on wheat and barley like we would expect it to especially in light of the fact that the corn price has come down.

On the protein side we've seen soybean meal and canola meal come down in price quite a lot here in the last few weeks.

Canola meal is trading probably 60 to 70 dollars lower than it was two months ago and really starting to be a factor in the rations where it hasn't been for quite some time.

Mr Campbell says, although feed costs have not come down as much as would typically be expected heading into in the fall, the pig price has been fairly strong so there is some optimism.

He encourages producers to consider locking in some percentage of their feed costs based on what they can sell the pigs for on the other side and look at hedging in some profits because these markets have been so volatile and there are profits on the table currently.

Wednesday, October 12, 2011
Pork Commentary: CBOT June Lean Hogs
US - This week, Jim Long writes about the US hog market in his latest Pork Commentary.

Jim Long is President &
CEO of Genesus Genetics.
Last week we called the September Hogs and Pigs Report bullish. The Chicken Little Economists called it bearish. When the dust settled last Friday, June lean hogs closed at a new contract high of $100.40 per pound up from $97.75 a pound the day the Hogs and Pigs Report were released. The report was bullish! The final result: Pig Farmers 1, Chicken Little Ag – Economists 0.

Demand
Last week the US marketed 2.34 million hogs up 100,000 from the same week last year. A real reflection of the tremendous pork demand we are having is the fact despite 100,000 more hogs the lean hog price of 53 – 54 per cent lean hogs was $94.91 per pound last week compared to $79.88 a year ago. That’s $30.00 per head more per market hog year over year in the face of 100,000 more hogs per week. That’s a real reflection of the strong pork demand of both domestic and export markets.

Other Observations
Cash early weaned pigs jumped up $5.00 per head last week (still real low at $22.47). We expect a rapid increase in both early weans and feeder pig prices in the coming weeks as the breakevens reflect higher hog and lower feed prices. We expect feeder pigs will reach $80.00 in the next 90 days.


Chicken production continues to plummet with chick placement down 9 per cent last week from a year ago (approximately 13.5 million chickens less a week). Unfortunately for the chicken industry less chicken is not translating into higher chicken prices as the composite average 12 city boiler price is $72.20 a pound down from the same week last year’s $80.59. Lower chicken prices and higher feed prices are leading to ongoing chicken industry financial losses. Has chicken consumption hit a consumer consumption ceiling? Whatever is happening 13 million fewer chickens a week means less protein for pork to compete with. This is very supportive for hog prices.
Beef
We read a report this past week from Rabobank – the world’s largest ag – lender about US beef supply. The gist of their presentation is in the last half of 2012 US beef production will be significantly lower. A combination of drought and continual herd reduction will lead to extremely strong prices. As it is said ‘The dog is going to hit the end of the chain.’ No more give. If the scenario is correct the high cattle prices will pull hogs higher.

US sows slaughter the week before the USDA September Hogs and Pigs Report released were 64,856. That is a level that would reflect liquidation. Now we have a bullish report we will monitor if this continues.


We know of some empty sow barns starting up again but we know of no new sow barn construction in the US and Canada. We expect that the breeding herd number is moving little either way up or down. The big factor for ever stronger prices continues to depend on pork demand.
Summary
The US hog industry is benefiting from tremendous demand. Despite huge runs of market hogs lean cash hog prices are in the mid 90’s. As hog numbers seasonally decline over the next few months and pork demand stays robust (as chicken and beef supplies decline) we expect to see record seasonal hog prices.


Author: Jim Long, President & CEO, Genesus Genetics 

Wednesday, October 12, 2011
Weekly Roberts Market Report
US - Corn, soybean and wheat futures all finished up on Monday, whilst dairy futures finished down, writes Michael T. Roberts.

Michael T. Roberts
Extension Agriculture Economist,
Dairy and Commodity Marketing,
NC State University

LEAN HOGS on the CME finished mixed on Monday with nearby’s down and deferreds up. OCT’11LH futures closed at $93.025/cwt; down $1.650/cwt and $0.100/cwt lower than last report.

The DEC’11LH contract closed at $87.750/cwt; off $1.650/cwt but $0.950/cwt over last report. MAY’12LH futures closed at $98.350/cwt; up $0.250/cwt and $1.850/cwt higher than a week ago.

Nearby contracts fell nearly two per cent on falling cash hog prices due to softening demand. Retailers are backing off fresh pork at current prices.

Bearish seasonality is also an influence; however, futures were supported by Chinese demand for US pork after the 2007 disease outbreak decimated herds in that country.

According to HedgersEdge.com, the average packer margin was lowered $9.35/hd from last report to a positive $2.00/head based on the average buy of $69.64/cwt vs. the average breakeven of $70.39/cwt.

CORN futures on the Chicago Board of Trade (CBOT) closed up on Monday in light volume. The DEC’11 contract closed at $6.050/bu; up 5.0 ¢ /bu and 12.75 ¢ /bu over a week ago.

MAR’12 futures closed at $6.174/bu; up 4.75 ¢ /bu and 11.5 ¢ /bu higher than this time last week. The DEC’12 contract closed up 4.25 ¢ /bu at $5.722/bu and 9.75 ¢ /bu higher than a week ago.

Futures were supported by a weak dollar, firm outside markets, and oversold conditions. The US dollar index decreased 1.6 per cent making US corn a better buy for importers. Some upside potential exists on technical chart signals.

The market is waiting on USDA’s release of its World Agriculture Supply Demand Estimate (WASDE) due out at 8:30 am on Wednesday, 10/12/11. Corn prices have firm upside potential.

SOYBEAN futures on the Chicago Board of Trade (CBOT) closed up on Monday. Trading volume was up nearly 19 per cent from the most recent 30-day average. USDA’s WASDE report will fuel trading on Wednesday. NOV’11 soybean futures closed 19.25 ¢ /bu higher at $11.774/bu; even with this time last week.

The MAR’12 contract closed at $11.976/bu; up 18.25 ¢ /bu but 0.5 ¢ /bu lower than a week ago. Futures closed in a broad rally on news that France and Germany will be coming up with a plan to contain the monetary crisis developing in Europe.

A lower US dollar was supportive. As of last Friday large funds decreased net bull positions by nearly 17,000 contracts.

WHEAT futures in Chicago (CBOT) finished up on Monday in light volume. The DEC’11 contract closed at $6.114/bu; up 4.0 ¢ /bu but 0.75 ¢ /bu lower than last report.

JULY’12 wheat futures finished at $6.830/bu; up 2.0 ¢ /bu but 9.75 ¢ /bu lower than this time last week. Volume was light, placed at 50,500 contracts. This was well below the 30-day average of 74,720 lots and the three-quarter average of 102,572 contracts.

Wheat futures were supported by a weaker US dollar. Markets closed well below session highs as traders locked in profits. Traders will wait to see what is in the USDA WASDE report due out Wednesday morning.

Wednesday, October 12, 2011
China's Farm Produce Prices Up Slightly Last Week
CHINA - China's prices for most farm produce continued to rise in the week ending 9 October, while that of pork remained flat compared to the previous week, the Ministry of Commerce (MOC) said in a report unveiled yesterday.


The prices of mutton, beef and chicken rose 0.5 per cent, 0.3 per cent and 0.2 per cent, respectively, week-on-week, according to the report.

Compared to the previous week, the retail prices of rice and flour climbed 0.2 per cent, and the prices of colza oil and soybean oil rose slightly by 0.1 per cent.

Due to a larger supply, the retail prices of eggs dipped 0.3 per cent from last week, down 0.5 per cent compared to the end of September, and the wholesale prices of eight aquatic products fell by 1.1 per cent week-on-week.

Food prices account for about one third in the calculation of China's consumer price index (CPI), a major gauge of inflation, which hit 6.2 per cent in August.

The National Bureau of Statistics will release the September CPI on 14 October. Many institutions anticipate the figure will remain over 6 per cent.

Tuesday, October 04, 2011Print This Page
Pork Commentary: September Hogs and Pigs Report Bullish
US - In this week's Pork Commentary, Jim Long comments on the latest Hogs and Pigs report released by the USDA on 29 September.


Jim Long is President &
CEO of Genesus Genetics.
Some of the wizard economists have called the last weeks USDA bearish, we don’t see that. This summer while we had US lean hogs around $1.00 the US breeding herd did not expand with the September breeding herd at 5.806 million, only 3,000 head greater than the 1 June. No expansion despite prices at historical highs. A breeding herd that is not expanding will not produce significantly more hogs over the next 10 months. Write $1.00 lean plus on the wall for next summer!

On the market hogs and pigs inventories we look at the inventory below 180 pounds. As most over 180 pounds on 1 September have already gone to market. The USDA reports that below 180 pounds 1 September was 49.917 million just a bit over 200,000 head higher than last year’s 49.682 million. That is less than ½ of 1 per cent difference year over year. The bottom line is the breeding herd and hog and pig numbers show little significant change. Going forward hog prices will be more affected by demand than supply variation. We are bullish, the USDA report is bullish. Demand is strong. How strong is pork demand? Last week despite marketing 2,250 million hogs US pork cut outs were 98.06 per pound, while the National 53 – 54 per cent lean hogs averaged $92.20 per pound. Both unprecedented high prices at market numbers that are 250,000 head a week more than we were selling weekly in the summer.

As we have been continually writing, hog prices in the major import markets of Japan, Mexico, South Korea, China and Japan are significantly higher than USA–Canada market prices. These price points will continue to pull pork to these markets. This pushes US hog prices higher. Throw in the high likelihood of less US beef in the coming year and US chicken supply that egg sets reflect 10 million fewer chickens per week year over year, it doesn’t take a rocket scientist that a growing US population will have to pay more for their meat ­­­­­­­­­­­­protein as total supply declines. The combination of supply and demand, we reiterate is bullish.

The Surest Cure for High Prices is High Prices
What a Eureka moment! Friday, the USDA discovered that $7.00 plus corn cut demand and increased supply. Friday’s USDA report indicated 164 million more bushels in storage than the experts’ guesses. By the end of the day corn had dropped 40 cents a bushel on the Chicago Board of Trade. On August 30, December corn was $7.75 a bushel with some ‘experts’ talking $12.00 per bushel. On September 30, a month later corn closed at $5.92 a bushel. That is almost a $2.00 per bushel decline. Also, on August 30, soy meal was $383 per ton while last Friday, September 30 it closed at $304 a ton. Almost $2.00 a bushel on corn and $80 a ton on soy meal translate into about a $25 per head decline in farrow to finish cost of production. That’s big money going in the right direction.

Margin Increase
The DTN Agdayta breakeven for 45 pound feeder pigs was $61.44 on Friday up $30.00 per head from a month ago. This is a reflection of the margin improvement in the industry mostly due to the big drop in feed prices. Unfortunately for feeder pig sellers the increase to $61.44 per head has not been reflected in the market place with the USDA weekly price calculation for 40 pound cash feeder pigs averaging $35.73. That is a huge difference. Over the years we have watched the small pig cash market and it usually follows the DTN Livestock Margin. Consequently, we expect a rapid increase in small pig prices in the coming weeks. 90 days from now we expect feeder pigs will be $80.

Summary
The September USDA Hogs and Pigs Report indicated a status quo for supply and when combined with strong pork demand domestically, and globally we expect this will lead to lean hog prices historically high for the next twelve months. We hope that the recent drop in corn and soybean prices continues, if it does, some fantastic hog margins will be captured in the next twelve months.


Author: Jim Long, President & CEO, Genesus Genetics 

Brazil – Livestock and Products Annual 2011
Pork production in Brazil is estimated to increase by two per cent in 2012, mostly supported by the demand from the domestic market, since exports are estimated to decline by one a per cent due the uncertainties over the Russian market, according to the USDA Foreign Agricultural Service.


Post forecasts beef and pork production to increase by two per cent in 2012 and pork production to increase by less than one per cent in 2012, respectively, supported mostly by the domestic market.

The outlook for the Brazilian economy in 2012 is for continued economic growth, but at a lower rate than previous years. Business in general is suffering with one of the highest interest rates in the world, valuation of the currency and rising inflation. However, domestic demand remains strong due to higher consumer purchasing power, mostly from the new Brazilian middle-class, which is supporting consumption for goods in general, including animal proteins.

Despite the uncertainties regarding the world economy, mostly due to the so-called rich world struggle with the debt crisis, Brazilian beef exporters are optimistic that world demand for beef will increase in 2012. On the other side, pork exporters are not optimistic about exports next year due to the uncertainties regarding the Russian market and are counting on firm domestic demand and stable feed costs to maintain their profitability.

Post revised production and export estimates for Brazilian beef and pork for 2011 to reflect new estimates made by trade sources. These estimates call for a drop in beef production and a small increase in pork production than those previously estimated. In general, domestic demand for both meats is supporting the industry this year, since exports for beef and pork are estimated to decline this year.

Post forecasts pig production to increase by only one per cent in 2012 supported mostly by the demand from the domestic market. Our forecast reflects current concerns of swine producers with the uncertainties regarding the Russian market. The price of live hogs already declined by an average 20 per cent in August 2011 and several producers are being forced out of business due to their higher concentration of slaughter destined to the Russian market.

Swine producers are also asking the government in the most important producing states to exempt their energy costs from the state sales tax as a mean to alleviate their current problems derived from the halt of exports to the Russian market and higher costs of inputs this year. Swine producers also have requested the government to extend their debts regarding their loans for production credit during 2010/2011.

Pork Production
Post forecasts pork production to increase by two per cent in 2012. The increase in production is mostly supported by domestic demand for pork, since there is a current pessimism among pork exporters that exports will continue to drop next year.

According to a recent release by the trade association, the sector is concerned about the negative impact of the current Russia delisting of Brazilian plants in the most important producing states of South’s Brazil.

According to the association, contrary to beef and poultry, the pork industry was mostly affected by the Russian delisting of Brazilian processors. Their expectations are that the Russians will drag on with the relisting of plants for an undetermined period of time. The pork council continues with a strong public campaign to increase consumption of pork in the domestic market and believes that the price of major pork cuts will be more competitive next year in relation to other types of meats.

Consumption
The Brazilian Association of Swine Producers (ABCS) entered into an agreement with the number one supermarket chain in Brazil to promote at the national level the largest marketing campaign ever conducted in Brazil to increase consumption of fresh pork. The new marketing campaign follows the success of the 2008 pilot campaign "Swine Meat: A New Look", which contributed to increase the consumption of fresh pork in Brazil as compared to a high concentration of consumption among processed products.

As of August 2011, retail pork prices are competitive with beef because of lower pork exports in July due to the Russian ban, which helps to foster pork consumption among the new Brazilian middle class.

Trade
Post forecasts pork exports to drop by one per cent in 2012. Our forecast is based on the recent increase of Brazilian plant delisted by the Russians and the difficulties the Brazilian government have to resolve the issue. In addition, there are some uncertainties also in other markets, such as Argentina, as producers from that country stopped access of the Brazilian product in the border, although this act did not prevent an increase in imports from Brazil in 2011. However, exporters in Brazil are concerned with an election year in Argentina in 2012 and expect constraints ahead.

Brazilian pork exports in 2011 are estimated to decline by six per cent due to the severity of the delisting of Brazilian pork slaughter plants by Russian officials.

Wednesday, October 05, 2011
Weekly Roberts Market Report
US - Corn futures on the Chicago Board of Trade (CBOT) finished mixed on Monday (3 October), while dairy class futures on the Chicago Mercantile Exchange (CME) closed down, writes Michael T. Roberts.

Michael T. Roberts
Extension Agriculture Economist,
Dairy and Commodity Marketing,
NC State University

CORN futures on the Chicago Board of Trade (CBOT) finished mixed on Monday. The DEC’11 contract closed at $5.924/bu; even with last Friday’s close but 56.75 ¢ /bu lower than a week ago. MAR’12 futures closed at $6.060/bu; up 0.25 ¢ /bu but 55.25 ¢ /bu lower than this time last week.

The DEC’12 contract closed down 3.25 ¢ /bu at $5.624/bu and 27.0 ¢ /bu lower than a week ago. The contract limit expanded to 60.0 ¢ /bu on Monday after the limit down trading last Friday.

News that China is expected to triple corn purchases offset bearish exports numbers. USDA put corn-inspected-for-export at 28.443 mi bu vs. estimates for 30-35 mi bu.

Even though large funds reduced long holdings in CBOT corn on Monday it should be noted that they have held long positions for the last four consecutive weeks.

This should prove price supportive later on. Put options would make a good price floor mechanism. However, upside potential may be in the offing.

SOYBEAN futures on the Chicago Board of Trade (CBOT) closed mostly down on Monday with the exception of the May 2012 and the July 2012 contracts. NOV’11 soybean futures closed 1.5 ¢ /bu lower at $11.774/bu; and 82.25 ¢ /bu under last report.

The MAR’12 contract closed at $11.980/bu; down 0.25 ¢ /bu and 80.0 ¢ /bu lower than a week ago. Friday’s extended sell-off was encouraged by a firm US dollar. More large funds sold contracts but are still net bullish.

Selling was triggered by forecasts for good harvest weather. In addition, Brazil’s 2011/12 soybean crop is forecast to be a record 75.2 mi tonnes (2.763 bi bu).

USDA late Monday put soybeans-inspected- for-export at 10.599 mi bu vs. estimates of nine to 14 mi bu. Price floors implemented by Put options might be a very good consideration at this time.

WHEAT futures in Chicago (CBOT) finished up on Monday. The DEC’11 contract closed at $6.194/bu; up 10.25 ¢ /bu but 28.75 ¢ /bu lower than last report.

JULY’12 wheat futures finis hed at $7.6.926/bu; up 16.0 ¢ /bu but 11.75 ¢ /bu lower this time last week. Fund buying was supportive.

Late Monday USDA put wheat-inspected- for-export at 22.079 mi bu vs. estimates for 22-27 mi bu. Global wheat supplies are ample and look to be that way for a while.

LEAN HOGS on the CME closed down on Monday with the exception of the October 2012 futures contract. OCT’11LH futures closed at $93.125/cwt; down $0.25/cwt but $4.625/cwt over last report.

The DEC’11LH contract closed at $86.800/cwt; off $0.725/cwt but $3.800/cwt over last report. MAY’12LH futures closed at $96.50/cwt; down $0.750/cwt but $1.00/cwt higher than a week ago.

Recent gains may be offset later this week by profit taking on weak cash hog prices. USDA on Monday put the cash pork price at $98.32/cwt; up $0.26/cwt but $0.52/cwt over last report.

Traders took profits as stronger-thanexpected pork exports rallied hog futures through a time of year when seasonal prices are normally in a period of decline. A broad sell-off in stocks also weighed on prices.

According to HedgersEdge.com, the average packer margin was lowered $3.75/hd from last report to a positive $11.35/head based on the average buy of $64.89/cwt vs. the average breakeven of $70.53/cwt. The latest CME lean hog index was placed at $91.30; up $0.22 and $0.38 higher than this time last week.

Monday, October 03, 2011
Pork Producers Urged to Be Aware of Ergot Infection
CANADA - A swine nutritionist with the Prairie Swine Centre is encouraging pork producers to be aware of the potential for ergot in cereal grains this year and avoid feeding contaminated grain to pigs that will become part of the breeding herd, Bruce Cochrane writes.


Farm-Scape is sponsored by
Manitoba Pork Council and Sask Pork

FarmScape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork. 

Ergot is a fungal disease that thrives under cool damp weather conditions infecting cereal grains at the flowering stage producing toxins that reduce the grain's end use desirability.

Ergot has emerged as the primary downgrading factor affecting cereal crops this year.

Dr Denise Beaulieu, a research scientist nutrition with the Prairie Swine Centre, explains you can actually see evidence of the fungus which is black in the sample and the fungus itself contains the toxins which are alkaloids and there are many different types of alkaloids so the concentration of alkaloids and the type of alkaloid will influence toxicity.

Denise Beaulieu-Prairie Swine Centre
When we did an experiment a few years ago looking at the effect of ergot on growth of weanling pigs the first thing that we saw was a depression in feed intake so this affected overall performance.

At levels as low as 0.1 per cent of ergot in the diet we saw a negative effect on growth and feed intake of the young piglet.

At that stage of growth we didn't see any gender specific effects but we also did see at very very low levels effects on some of the hormones in the piglets that would be associated with reproduction and so, while we would recommend that you could feed grains that have a very low level of contamination to the growing pig, we would recommend that you do not feed any at all to the breeding herd.

Dr Beaulieu says you can have ergot in the diet at levels not greater than 0.1 per cent so if you suspect ergot have your grain tested, then dilute out the ration to be sure it is not higher than 0.1 per cent and certainly do not feed it to any sows that will be destined for breeding.

Monday, October 03, 2011
Hog Producers in Expansionary Mood
US - USDA’s September Hogs and Pigs report said the breeding herd was 0.6 per cent larger than a year ago and the market hog inventory was up 1 per cent compared to 1 September 1010, writes Ron Plain.
 
Ron Plain
Record hog prices this summer appear to have put some hog producers in an expansionary mood.

Litters farrowed during June-August were down 1.5 per cent, but because pigs per litter were up 2.2 per cent, the summer pig crop was up 0.7 per cent. USDA is predicting the number of sows to farrow this fall will be down 0.2 per cent and they predict December-February farrowings will be 0.5 per cent higher than a year earlier. If the number of sows that farrow this winter is above the year-ago level, it will be the first time since March-May 2008. I am predicting 2012 hog slaughter at 112 million head, up 1.6 per cent from this year.

USDA said the number of pigs weighing 180 pounds or more on September 1 was up 3.4 per cent. It looks like September hog slaughter will total about 3.7 per cent more than last year. The September survey put the inventory of hogs weighing 120 to 179 pounds at 100.7 per cent of last year, and the number of market hogs weighing less than 120 pounds at 100.4 per cent of last year.

All the key report numbers were higher than the average of the pre-release trade forecast, yet the futures market held steady to higher this week. Either this indicates traders don’t agree with the pre-release forecasts or are optimistic about meat demand. China appears to be buying a lot of US pork.

Today’s close for the October lean hog futures contract, $93.37/cwt, was up $4.58 from last Friday. The December lean hog futures contract settled at $87.80/cwt, up $4.08 from the previous Friday. February gained $3.66 this week to settle at $91.57/cwt.

The pork cutout value rose for the third week in a row. USDA’s Thursday afternoon calculated pork cutout value was $98.08/cwt, up 57 cents from the previous Thursday. Loins and butts were lower, hams and bellies were higher.

The national average negotiated carcass price for direct delivered hogs on the morning report today was $87.34/cwt, up $2.47 from last Friday. The Friday morning price report for the western corn belt was $90.65/cwt. Iowa-Minnesota averaged $90.68/cwt. Eastern corn belt barrows and gilts averaged $84.10/cwt of carcass, far below the western corn belt for the fourth week. Friday’s top live hog price at Peoria was $60/cwt. Zumbrota’s top was also $60/cwt. The top for interior Missouri live hogs was $63.75/cwt, unchanged from the previous Friday.

Hog slaughter totaled 2.25 million head this week, down 1.7 per cent from last week, but up 4.7 per cent compared to the same week last year. Barrow and gilt carcass weights for the week ending 17 September averaged 199 pounds, unchanged from the week before and unchanged from a year ago. Iowa-Minnesota live weights for barrows and gilts last week averaged 270 pounds, up 1.6 pounds from the week before and up 0.2 pounds compared to the same week last year. This is the first week Iowa-Minnesota weights have been above the year-earlier level since May.

Monday, October 03, 2011
China Bans Clenbuterol Tablets
CHINA - China has banned the production, sale and use of clenbuterol tablets, which are often illegally added to pig feed, the food and drug authority said on Friday (30 September).


Clenbuterol, an additive known as 'lean meat powder', has been used by some farmers to speed up muscle building and fat-burning, resulting in leaner pork, according to an official source.

The decision was made after a consideration of the risks and potential danger of the drug's excessive use, said the State Food and Drug Administration (SFDA).

Existing clenbuterol tablets will be destroyed under the supervision of local food and drug departments.

Compound clenbuterol, as well as aerosol and powdered forms of the drug, do not fall under the ban, as they are considered safe to use as prescription drugs under a doctor's guidance, said the SFDA.

The SFDA also added that all clenbuterol supplies involved in the food safety violations were produced by underground drug factories and did not come from licensed pharmaceutical manufacturers.

Zhang Jianpeng, director of the pneumology department of the General Hospital of Armed Police Forces, told China Daily that clenbuterol tablets can cause serious negative effects to people's lungs if abused for a lengthy period.

"The drug's basic function is to relieve a cough and mainly treat bronchial asthma but if it's overdosed by patients, especially children, it will cause side effects," he said, adding the clenbuterol tablets also can be used as a stimulant that is harmful to people's health.

The ban will not affect bronchial asthma patients who are receiving the tablet form of the drug because they can replace the clenbuterol with other medicines that are safer, such as salbutamol and terbutaline, according to the SFDA.

A total of 989 people involved in the manufacture and sale of clenbuterol were arrested as of the end of August, according to the Ministry of Public Security.

In March, China Central Television reported that pork tainted with clenbuterol had been found in products made by Henan Shuanghui Investment and Development Co Ltd, a prominent pork producer in China. The company later admitted to the violation and apologised to the public.

Friday, September 23, 2011
ACMC Tip: Lighten Up for Breeding Sows
UK - The significance of light for maintaining pregnancy is well recognised, says Paul Thompson, veterinary consultant to pig-breeding company ACMC Ltd.
 

He points out that it is also important to ensure the weaned sow and service area is well lit, i.e. to an intensity of at least 200 lux and on a 16-hour light, 8-hour dark pattern.

Furthermore, good lighting in these areas highlights hygiene issues and aids heat detection.

It must be remembered that insufficient light can contribute to delayed returns to service.

Friday, September 30, 2011
Foot-and-Mouth Disease Prompts Korean Pork Imports
SOUTH KOREA - With domestic hog production reduced 28.6 per cent (January-to-July) because of foot-and-mouth disease losses, the South Korean government is stimulating pork imports with a duty-free Tariff Rate Quota.


To curb soaring consumer prices, the government is also subsidizing the difference in costs between air freight and ocean freight for chilled pork bellies, reported US Grains Council Director in Korea Byong Ryol Min.

The result is a 91.5 per cent increase in Korean pork imports this year, according to Korean customs data. Among major suppliers, the United States gained the largest share of the increase. US sales are up 141.5 per cent and the US share of Korea’s pork purchases increased from 27.7 to 35 per cent.

What is the present state of the meat goat industry in country?Information is hard to come by and in its present state is still more or less in the hobby phase.

Until real major meat goat operations fire up which might be awhile because one stumbling block is the 5hec. allowance by law in country.Hard to raise any real numbers on such small acreage.This alone will put off some of the investors on the sidelines.When ones does a budget and real business plan its hard to see any real returns if the operation is relying on off the shelf concentrates over free ranging.The farmgate prices are low and if one relies on their local livestock sales yard or the travelling traders,not much to show for all your efforts and hardwork,little to be gained.

How will this industry really grow.Well with the Govts. plan to raise meat goats and sheep in the provinces under the road map plan for this industry and adding these extra numbers will boost production numbers,this is a plus but at the same time,better quality stocks require better quality feeds and off the shelf concentrates are not cheap to buy.Feeding a mediocre goat better quality feeds does not translate into a better quality goat,you will only make it fat and at added costs to you,the producer.More Govt. funding is needed to explore the different forages and grasses that will help any producer not rely on name brand concentrates to keep their herd in top shape and producing well enough see real performance that translates into real profits.A producer will need to sell x amount of goats yearly as breeding foundation will help put more monies in your pocket.

In our last reasearch into pellets or silage.Our conclusion is that one will need to produce enough feeds on their land and with the extra forages grown the costs related to pellets is very expensive compared to making silage but silage done wrong will kill your goats or any other livestock.More research from the Govt. side to educate those in the provinces how to make silage properly and a discount on the heavy duty plastic needed will be much more cost effective over the expensive outlay of cash for a pellet making machine.
The average producer in the rural countryside will find it very difficult to feed concentrates to goats when the money should be spent on their own families.Silage might have some value for meat production.

The smart producer will be the first producer to find a way to feed their goats cheaply and effectively and have their own outlet for the meat they produce over selling to traders or the local sales yard.Find your own market and build up a customer base for your product.

The future is bright as this red meat is on the rise.Like with any livestock production,some will succeed and some will fold.Do your homework and come up with a plan,failing to plan usually results in failure.

Meat the need:
Mustang Sally Farm

Pork Commentary: Corn Price Down Hard
CANADA - This week's North American Pork Commentary from Jim Long.

Jim Long is President &
CEO of Genesus Genetics.
December corn lost 53.5 cents a bushel last week closing Friday at $6.38. It is good to see it going down when not so long ago corn was $7.79 and there were some speculators chirping that it might go to $12.00 a bushel.

Of course part of the price slippage is due to the general negative news that have dominated the global economic news.

Not sure how relevant the reports we are getting, but early indicators from the US, harvest is many are finding 20 more bushels of corn per acre than they expected. A Bigger corn crop then expected is only good news for hog producers.

While corn was down October Lean hog futures gained $1.45 a pound for the week.

The combination of corn down 53 cents a bushel and hogs up $1.45 a pound improved hog margins about $8.00 per head.

You can see the improvement in Hog Margins in the livestock margin that DTN Ag data does daily. Not so long ago it projected you could pay $30 for a 45 pound feeder pig. Last Friday it projected $50.78. That is a $20 improvement per head.


Pork demand is strong. Last week the US marketed almost 2.3 million hogs. That is 100,000 more than the same week last year despite the greater number of hogs per week. The lean hog price is $7.00 per hundred higher than a year ago with USDA. US pork cut outs at $97.84 an unprecedented high price with hog numbers at 2.3 million per week. Fantastic demand from pork exports will continue to support hog prices throughout the fall.


Pork demand will be further aided in the coming weeks as chicken marketing’s drop about 5 -7 per cent year over year or about 10 million less chickens a week. Less chicken should support their own prices but also help pork.


The US September Cattle on Feed report released last Friday is being called bullish. 1 per cent less cattle than a year ago surprised the trade which was expecting 1 per cent more. This should push cattle prices up which should also pull hogs along.
Tough Times
It’s not easy to be a hog producer. Feed prices have been at unprecedented levels and then throw in the fear of even higher feed prices it makes it even harder. We get a sense of little optimism in the hog industry. A sense that many feel marooned in the hog industry with little opportunity to escape. We have as an industry in the last few years had to deal with negative margins, high feed prices, H1N1 (swine flu), animal welfare, environmental, corn ethanol, etc… It appears we have not got many breaks. The bright spot is pork demand has been strong domestically and globally. This has allowed lean hog prices to reach and exceed $1.00 lean per pound. We expect much of the same in prices in the next twelve months. As hog producers we are producing a product that domestically and globally people are voting with their money that they want. That in itself is an underlying strength that we have in our business. No choice, no exit strategy, best we stay focused on maintaining our position as the Number One choice of protein consumers in the world.


Author: Jim Long, President & CEO, Genesus Genetics

Weekly Roberts Market Report
US - While corn, wheat, feeder and live cattle closed up on Monday, dairy class futures closed down, writes Michael T. Roberts.

Michael T. Roberts
Extension Agriculture Economist,
Dairy and Commodity Marketing,
NC State University

LEAN HOGS on the CME closed mixed on Monday. OCT’11LH futures closed at $88.500/cwt; down $0.30/cwt but $0.65/cwt over last report. The DEC’11LH contract closed at $83.000/cwt; off $0.725/cwt but $1.175/cwt over last report.

MAY’12LH futures closed at $95.500/cwt; up $0.500/cwt but $0.40/cwt lower than a week ago. Slowing momentum of near-term demand amid supportive signs encouraged volatility.

Seasonally hog prices should begin falling in October and November as producers expand production in the cooler weather. Supplies will begin to outpace demand from meat packers until fundamentals equalize.

Increased prices in beef could push consumers back to pork however. Late Monday USDA put the pork cutout at $97.8/cwt, down $0.03/cwt but $2.44/cwt over last report.

According to HedgersEdge.com, the average packer margin was raised $4.65/hd from last report to a positive $15.15/head based on the average buy of $64.89/cwt vs. the average breakeven of $70.53/cwt. The latest CME lean hog index was placed at $90.92; up $0.03 and $3.23 higher than this time last week.

CORN futures on the Chicago Board of Trade (CBOT) closed up on Monday. The DEC’11 contract closed at $6.480/bu; up 9.5 ¢ /bu but 44.25 ¢ /bu lower than a week ago.

MAR’12 futures closed at $6.612/bu; up 9.25 ¢ /bu but 43.75 ¢ /bu lower than this time last week. The DEC’12 contract closed up 11.0 ¢ /bu at $5.894/bu but 28.25 ¢ /bu lower than a week ago.

Exports, oversold technicals, and higher cash corn prices were supportive. USDA put corn-inspected-for-export at 34.282 mi bu vs. expectations for 27- 31 mi bu.

Large speculators are leaving corn positions on a sinking economy and indications that farmers will plant more than 94 mi acres of corn next year, the most since World War II.

There may be some support near the end of the week as speculators buy back previously sold positions. Corn producers should probably hold off pricing any more corn at this time.

SOYBEAN futures on the Chicago Board of Trade (CBOT) were mixed on Monday with deferreds beyond September 2012 down and nearbys up. NOV’11 soybean futures closed 19.5 ¢ /bu lower at $12.596/bu; 1.75 ¢ /bu up but 76.5 ¢ /bu over last report.

The MAR’12 contract closed at $12.780/bu; up 1.5 ¢ /bu but 67.0 ¢ /bu lower than a week ago. Exports were not supported with USDA putting soybeansinspected-for-export at 7.418 mi bu vs estimates of 10-12 mi bu.

Losses were pared after the market fell to 10-month lows on technical selling. Trading was brisk in volume of 180,000 contracts; 12 per cent over the previous 30-day average. It still looks like soybeans may become cheaper sooner rather than later.

WHEAT futures in Chicago (CBOT) finished up on Monday. The DEC’11 contract closed at $6.482/bu; up 7.5 ¢ /bu and 10.75 ¢ /bu higher than last report.

JULY’12 wheat futures finished at $7.042/bu; up 6.25 ¢ /bu but 35.0 ¢ /bu lower this time last week.

Exports were neutral with USDA putting wheatinspected-for-export at 21.605 mi bu vs estimates for 20-25 mi bu.

Short covering, oversold conditions, and dry conditions in the southern US plains were supportive. Wheat prices edged higher on sluggish buying. Pit sources said concerns over economic recession are held prices up. Global supplies show some signs of tightening. End users should consider pricing near-term needs.