December 1, 2017 Tennessee Market Highlights Number: 48

FED CATTLE: Fed cattle traded $1 to $2 higher compared to last week on a live ba-sis. Prices on a live basis were mainly $119 to $121 while dressed prices were mainly $190.

The 5-area weighted average prices thru Thursday were $120.68 live, up $1.76 from last week and $190.05 dressed, up $1.01 from a week ago. A year ago prices were $114.14 live and $174.95 dressed.

The lackluster trade from last week did not persist into this week. The discussion last week concerning the potential for finished cattle prices to move higher prior to Christ-mas was realized. Finished cattle are trad-ing with a slight positive basis which should keep cattle feeders as willing sellers. Simi-larly, the February live cattle contract is trading at a $5 premium to the December contract which should keep packers actively searching for cattle as prices are expected to escalate with the turn to the new year. The market has been trying to figure out how many cattle are still in the country to be put on feed, but timely marketings and lower finished weights are keeping things in check. The market is current right now which is beneficial for all in the industry.

BEEF CUTOUT: At midday Friday, the Choice cutout was $206.15 up $1.51 from Thursday and down $4.61 from last Friday. The Select cutout was $183.58 down $0.63 from Thursday and down $7.06 from last Friday. The Choice Select spread was $22.57 compared to $20.12 a week ago.

Packers are less than enthused as cattle prices and boxed beef prices diverged this week. Packers are hoping holiday purchas-ing picks up in the next couple of weeks as beef is the primary feature on many con-sumers holiday spread. The expectation would be for the Choice cutout to be well supported through holiday purchasing and with some of the restocking of meat coun-ters. However, no surge in Choice prices was evident this week as price faltered sig-

nificantly. It is doubtful packers are con-cerned at this point as there are still a cou-ple of weeks in which retailers and food service entities can make spot market pur-chases. Once holiday purchasing is com-plete, the focus will shift from middle meats to end meats which will result in a narrowing of the Choice Select spread. The concern here is if Choice beef or Select beef will do the majority of the moving. Choice prices are sure to soften while Select prices will likely firm, but packers would prefer more firming from Select beef than soften-ing in Choice beef.

OUTLOOK: Feeder cattle futures were hav-ing a positive week until Thursday and Fri-day trade. If the softer prices on Thursday were not bad enough, lower prices on Fri-day really put a damper on some spirits. It almost seems to be a case of the tail wag-ging the dog as fundamentals in the market seem consistent with previous weeks yet prices turned and headed south. There is a good possibility that technical trading in the live cattle market is the cause of the feeder cattle futures downturn. The turn in the live cattle market has packers hesitant to pur-chase finished cattle late this week at cattle feeders’ asking prices which then bleeds into the feeder cattle market. Despite the late week turn in feeder cattle futures, sev-eral loads of feeder cattle sold with strong prices this week in Tennessee. Loads of steers with average weights ranging from 675 pounds to 785 pounds sold from $143 to $163 with most of those loads in the $150s. Similarly, steers in the 800 to 900 pound average range sold between $143 and $156 with most in the low $150s. Load lot prices continue to prove profitable for cow-calf and stocker producers as winter is quickly approaching. Weekly auction mar-ket prices also continue to be favorable for profitability for cow-calf producers as well as offering purchasing opportunities to stocker producers. Advising producers to

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

Slaughter Cows

No trends due to most markets not being reported last week.

Slaughter Bulls

No trends due to most markets not being reported last week.

Feeder Steers

No trends due to most markets not being reported last week.

Feeder Heifers

No trends due to most markets not being reported last week.

Feeder Cattle Index

Wednesday’s index: 156.92

Fed Cattle

The 5-area live price of $120.68 is up $1.76. The dressed price is up $1.01 at $190.05.

Corn

December closed at $3.44 a bushel, up 2 cents since last Friday.

Soybeans

January closed at $9.94 a bushel, up 1 cent since last Friday.

Wheat

December closed at $4.14 a bushel, down 1 cent since last Friday.

Cotton

December closed at 75.43 cents per lb, up 3.2 cents since last Friday.

2

sell now or to continue growing animals is a tough call in the current market, but it is also tough to make the wrong decision at this juncture. Given current profitability and the opportunity to increase profits by adding weight, the question is if a produc-er wants to take the bird that is in hand or try to grab the two birds in the bush that are in a small cage. Many producers will make the decision to cash out in the near term which is difficult to argue with while other producers will hold on a little while longer which is also difficult to argue against. It is hard to be frustrated with positive returns in business as risky as this.

ASK ANDREW, TN THINK TANK: A question was posed this week concerning how a round bale hay price translates to a small square bale hay price. Answering this question can be made easy or difficult. Based on USDA-NASS, the average hay price in Tennessee from 2008 through 2016 was about $96 per ton. It is not known if this hay was in the form of large round bales, large square bales, or small square bales. However, it is known that many folks can purchase a round bale of hay for a price of $25 to $40 per bale regardless of the size bale. The price of small square bales largely depends on the quality of the hay in the bale. One key aspect to note is that small square bales generally cost more due to additional labor costs and storage costs relative to large bales. The key for hay sellers is that all costs are covered by the price for which the hay is being marketed, and for hay buyers it is paramount that the quality of the hay and tonnage matches the price being paid.

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 –December $117.23 -2.68; February $121.98 -3.00; April $123.03 -2.90; Feeder cattle –January $150.33 -3.85; March $148.03 -4.25; April $148.15 -4.20; May $147.43 -4.05; December corn closed at $3.45 up $0.03 from Thursday.

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Livestock Comments by Dr. Andrew Griffith

Thursday November 30, 2017

Month Class III Close Class IV Close

Nov 15.37 13.65

Dec 14.68 13.68

Jan 14.71 13.84

Feb 14.74 13.99

Mar 14.93 14.20

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 119,250 456,250

Last week (3 days) 120,000 460,000

Year ago (4 days) 115,000 440,000

This week as percentage of

Week ago (%) 99% 99%

Year ago (%) 104% 104%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 204.64 184.21

Last Week - FRIDAY 210.99 187.85

Year ago 189.95 172.77

Change from week ago -6.35 -3.64

Change from year ago +14.69 +11.44

3

Crop Comments by Dr. Aaron Smith

Overview Corn, soybeans, and cotton were up; and wheat was mixed for the week. November was not a good month for grain futures. December corn closed the month at $3.41 ¾, down 4 cents for the month and December wheat closed at $4.09 ¼, down 9 ½ cents for the month. January soybeans traded flat for the month closing at $9.85 ¾, up 1 cent from the start of the month.

Cotton futures had a terrific November. The December contract closed the month at 75.04 cents, up 6.33 cents for the month. While many factors have influenced futures prices this past month, export sales commitments shed some light on futures market price direction in November. Year-to-date cotton export sales commitments are 9.646 million bales (2.19 million in exports-to-date and 7.456 million in outstanding sales), 41% higher than a year ago and 72% of the USDA’s marketing year total. By comparison total export sales commitments for: soybeans are 1.264 billion bushels, down 18% from last year and 56% of the USDA’s marketing year total; corn are 867 million bushels, down 27% from last year and 45% of the USDA’s marketing year total; and wheat are 634 million bushels, down 9% from last year and 63% of the USDA’s marketing year total. Strong export demand for cotton was a major driver of improved cotton futures prices. Exports provide a strong source of demand for all four commodities and help to elevate domestic carryover from one marketing year to the next. Moving through December and into 2018, South American crop progress, global economic growth, and the strength of the USD relative to other currencies will dictate export sales pace for all four commodities. Corn December 2017 corn futures closed at $3.44 up 2 cents since last Friday. For the week, December 2017 corn futures traded be-tween $3.35 and $3.45. Across Tennessee, average basis (cash price-nearby futures price) strengthened or remained unchanged at Memphis, Northwest Barge Points, Northwest, Lower-middle, and Upper-middle Tennessee. Overall, basis for the week ranged from 30 under to 15 over the December futures contract with an average of 1 under at the end of the week. Nationally, the Crop Progress report estimated corn harvested at 95% compared to 90% last week, 98% last year, and a 5-year average of 98%. Dec/Mar and Dec/Dec future spreads were 14 and 45 cents, respectively.

March 2018 corn futures closed at $3.58 up 3 cents since last Friday. Corn net sales reported by exporters from November 17-23 were below expectations with net sales of 23.6 million bushels for the 2017/18 marketing year. Exports for the same time period were down from last week at 25.6 million bushels. Corn export sales and commitments were 45% of the USDA estimated total an-nual exports for the 2017/18 marketing year (September 1 to August 31) compared to a 5-year average of 50%. Ethanol production for the week ending November 24 was 1.066 million barrels per day down 8,000 from the previous week. Ethanol stocks were 22.044 million barrels, up 147,000 barrels. In Tennessee, January 2018 cash forward contracts averaged $3.54 with a range of $3.37 to $3.85. December 2018 corn futures closed at $3.89 up 2 cents since last Friday. Downside price protection could be ob-tained by purchasing a $3.90 December 2018 Put Option costing 27 cents establishing a $3.63 futures floor. Soybeans January 2018 soybean futures closed at $9.94 up 1 cent since last Friday. For the week, January 2018 soybean futures traded be-tween $9.85 and $10.01. Average soybean basis strengthened or remained unchanged at Memphis, Northwest Barge Points, Upper-middle, Lower-middle, and Northwest Tennessee. Basis ranged from 72 under to 11 over the January futures contract at elevators and barge points. Average basis at the end of the week was 20 under the January futures contract. In Tennessee, the Crop Progress

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

report estimated soybeans harvested at 91% compared to 83% last week, 100% last year, and a 5-year average of 94%. January/December soybean-to-corn price ratio was 2.89 at the end of the week.

Jan/Mar and Jan/Nov future spreads were 12 and 15 cents, respectively. March 2018 soybean futures closed at $10.06 up 2 cents since last Friday. In Tennessee, January 2018 soybean cash contracts average $9.84 with a range of $9.51 to $10.06. Net sales re-ported by exporters were within expectations with net sales of 34.6 million bushels for the 2017/18 marketing year. Exports for the same period were up from last week at 81.0 million bushels. Soybean export sales and commitments were 56% of the USDA esti-mated total annual exports for the 2017/18 marketing year (September 1 to August 31), compared to a 5-year average of 74%. November 2018 soybean futures closed at $10.09 up 5 cents since last Friday. Downside price protection could be achieved by pur-chasing a $10.20 November 2018 Put Option which would cost 65 cents and set a $9.55 futures floor. November/December 2018 soybean-to-corn price ratio was 2.59 at the end of the week. Cotton Delta upland cotton spot price quotes for November 30 were 72.06 cents/lb (41-4-34) and 73.81 cents/lb (31-3-35). Adjusted world price (AWP) increased 1.63 cents to 64.22 cents per pound. Nationally, the Crop Progress report estimated cotton harvested at 79% compared to 74% last week, 76% last year, and a 5-year average of 80%. In Tennessee, cotton harvested was estimated at 91% compared to 81% last week, 100% last year, and a 5-year average of 90%. December 2017 cotton futures closed at 75.43 cents up 3.2 cents since last Friday. For the week, December 2017 cotton futures traded between 71.84 and 75.82 cents. Dec/Mar and Dec/Dec cotton futures spreads were -2.15 cents and -4.22 cents, respectively.

March 2018 cotton futures closed at 73.28 up 1.35 cents since last Friday. Net sales reported by exporters were down from last week with net sales of 276,500 bales for the 2017/18 marketing year and 52,800 bales for the 2018/19 marketing year. Exports for the same period were up from last week at 112,200 bales. Upland cotton export sales were 72% of the USDA estimated total annu-al exports for the 2017/18 marketing year (August 1 to July 31), compared to a 5-year average of 57%. December 2018 cotton fu-tures closed at 71.21 up 0.1 cents since last Friday. Downside price protection could be obtained by purchasing a 72 cent December 2018 Put Option costing 5.18 cents establishing a 66.82 cent futures floor. Wheat In Memphis, old crop cash wheat ranged from $3.84 to $3.92. December 2017 wheat futures closed at $4.14 down 1 cent since last Friday. December 2017 wheat futures traded between $4.05 and $4.17 this week. December wheat-to-corn price ratio was

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

1.20. Wheat net sales reported by exporters were below expectations with net sales of 6.8 million bushels for the 2017/18 mar-keting year and 0.1 million bushels for the 2018/19 marketing year. Exports for the week were up from last week at 12.4 million bushels. Wheat export sales were 63% 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 71%. Dec/Mar and Dec/Jul future spreads were 24 cents and 50 cents, respectively.

March 2018 wheat futures closed at $4.38 up 4 cents from last Friday. Nationally, the Crop Progress report estimated winter wheat emerged at 92% compared to 88% last week, 92% last year, and a 5-year average of 92%; and winter wheat condition at 50% good-to-excellent and 12% poor-to-very poor. In Tennessee, winter wheat planted was estimated at 91% compared to 85% last week and 94% last year; winter wheat emerged at 79% compared to 69% last week and 75% last year; and winter wheat condition at 78% good-to-excellent and 1% poor-to-very poor. In Tennessee, June/July 2018 cash forward contracts ranged from $4.24 to $4.93 for the week. July 2018 wheat futures closed at $4.64 up 3 cents since last Friday. Downside price protection could be obtained by purchasing a $4.70 July 2018 Put Option costing 31 cents establishing a $4.39 futures floor. 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, November 24, 2017 — Thursday, November 30, 2017

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Jan 9.93 9.96 9.93 9.92 9.85

($/bushel) Mar 10.04 10.07 10.04 10.04 9.97

May 10.14 10.17 10.14 10.14 10.08

Jul 10.22 10.25 10.23 10.23 10.17

Aug 10.23 10.26 10.23 10.23 10.18

Sep 10.13 10.15 10.13 10.13 10.08

Corn Dec 3.42 3.38 3.36 3.39 3.41

($/bushel) Mar 3.55 3.51 3.49 3.53 3.55

May 3.63 3.60 3.58 3.61 3.63

Jul 3.71 3.68 3.66 3.69 3.71

Sep 3.78 3.75 3.73 3.77 3.78

Dec 3.87 3.84 3.82 3.86 3.87

Wheat Dec 4.15 4.09 4.10 4.16 4.09

($/bushel) Mar 4.34 4.28 4.29 4.34 4.33

May 4.47 4.41 4.40 4.46 4.45

Jul 4.61 4.55 4.54 4.58 4.58

Sep 4.76 4.70 4.69 4.72 4.72

Soybean Meal Dec 323 327 323 325 324

($/ton) Jan 325 329 325 327 326

Mar 329 332 329 330 329

May 331 334 331 333 332

Jul 333 337 333 335 334

Aug 333 336 333 334 334

Cotton Dec 72.23 72.15 74.05 75.52 75.04

(¢/lb) Mar 71.93 71.42 72.14 73.43 72.81

May 72.82 72.24 72.81 73.97 73.48

Jul 73.28 72.67 73.11 74.15 73.83

Oct 71.53 70.91 70.98 71.70 71.69

Live Cattle Dec 118.57 119.82 119.65 120.47 119.90

($/cwt) Feb 124.57 126.05 125.67 126.60 124.97

Apr 125.25 126.85 126.40 127.10 125.92

Jun 118.22 119.32 119.02 119.60 118.55

Aug 114.80 115.87 115.67 116.10 115.22

Feeder Cattle Jan 153.30 154.45 154.50 155.57 154.17

($/cwt) Mar 151.77 152.55 152.82 153.77 152.27

Apr 151.57 152.47 152.85 153.62 152.35

May 150.87 151.77 152.02 152.62 151.47

Aug 152.80 153.72 153.97 154.12 153.35

Sep 151.12 152.47 152.67 152.87 151.80

Market Hogs Dec 63.25 64.52 65.75 65.07 64.27

($/cwt) Feb 69.40 70.10 71.52 70.90 69.77

Apr 73.57 74.07 75.15 75.05 73.85

May 79.00 79.45 80.15 80.02 79.20

Jun 82.70 83.12 83.87 84.07 82.87

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 5,405 (7) Week ago: 2,856 (3) Year ago: 5,848 (7)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

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

Steers: Medium/Large Frame #1-2

300-400 lbs 145.00 180.00 165.38 150.15 141.11

400-500 lbs 136.00 17.00 157.39 144.38 132.49

500-600 lbs 129.00 163.00 151.24 141.43 125.29

600-700 lbs 119.00 154.50 139.66 133.66 119.10

700-800 lbs 118.00 145.00 132.98 134.98 115.19

Steers: Small Frame #1-2

300-400 lbs ——— ——— ——— ——— 118.22

400-500 lbs 140.00 156.00 118.71 ——— 114.90

500-600 lbs 123.00 131.00 126.96 119.01 107.48

600-700 lbs ——— ——— ——— ——— 105.47

Steers: Medium/Large Frame #2-3

300-400 lbs 137.00 170.00 154.57 133.29 127.14

400-500 lbs 110.00 156.00 140.14 129.34 114.89

500-600 lbs 111.00 145.00 132.03 130.76 104.55

600-700 lbs 115.00 141.00 130.79 114.42 107.01

700-800 lbs 110.00 128.50 121.58 ——— 99.09

Holstein Steers

300-400 lbs ——— ——— ——— ——— ———

500-600 lbs 85.00 90.00 86.57 ——— ———

700-800 lbs ——— ——— ——— ——— ———

Slaughter Cows & Bulls

Breakers 75-80% 42.00 48.19 52.61 48.71 55.00

Boners 80-85% 55.46 55.64 50.68 39.00 64.00

Lean 85-90% 34.00 55.50 44.98 47.56 44.51

Bulls YG 1 64.00 85.00 73.00 71.15 73.20

Heifers: Medium/Large Frame #1-2

300-400 lbs 123.00 160.00 139.77 131.59 125.02

400-500 lbs 110.00 148.00 135.77 128.66 114.99

500-600 lbs 109.00 142.00 131.73 125.38 109.35

600-700 lbs 112.00 138.00 125.45 126.06 104.45

Heifers: Small Frame #1-2

300-400 lbs 130.00 141.00 133.55 ——— 97.78

400-500 lbs 114.00 124.00 119.19 ——— 97.26

500-600 lbs 110.00 128.00 119.35 ——— 95.92

600-700 lbs ——— ——— ——— ——— 94.05

Heifers: Medium/Large Frame #2-3

300-400 lbs 112.00 143.00 128.39 124.79 111.92

400-500 lbs 109.00 136.00 123.77 120.80 103.15

500-600 lbs 104.00 131.00 120.38 112.58 95.79

600-700 lbs 106.00 122.00 114.21 114.62 93.07

Prices on Tennessee Reported Livestock Auctions for the week ending December 1, 2017

8

Friday, November 24, 2017 — Thursday, November 30, 2017

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

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

No. 2 Yellow Soybeans

Memphis ——— 9.93-9.96 9.90-9.93 9.89-9.92 9.82-9.85

N.W. B.P. ——— 9.86-9.94 9.83-9.90 9.82-9.89 9.75-9.82

N.W. TN ——— 9.64-9.71 9.58-9.68 9.61-9.68 9.54-9.61

Upper Md. ——— 9.61-9.89 9.58-9.78 9.58-9.77 9.66-9.66

Lower Md. ——— 9.24-9.52 9.24-9.49 9.24-9.48 9.24-9.41

Yellow Corn

Memphis ——— 3.38-3.48 3.48-3.48 3.49-3.51 3.51-3.53

N.W. B.P. ——— 3.43-3.48 3.36-3.46 3.49-3.49 3.44-3.51

N.W. TN ——— 3.14-3.19 3.12-3.36 3.15-3.39 3.18-3.41

Upper Md. ——— 3.09-3.39 3.15-3.36 3.20-3.38 3.30-3.30

Lower Md. ——— 3.29-3.53 3.26-3.51 3.29-3.54 3.32-3.56

Wheat

Memphis ——— 3.84-3.84 3.85-3.85 3.91-3.91 3.84-3.84

Prices Paid to Farmers by Elevators

100

120

140

160

180

200

220

Tennessee 500-600 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

85

105

125

145

165

185

Tennessee 700-800 lbs. M-1 Steer Prices2016, 2017 and 5-year average

2011/2015 Avg 2016 2017

8595

105115125135145155

5-Area Finished Cattle Prices2015, 2016 and 5-year average

2011/2015 Av g 2016 2017

35455565758595

105

Tennessee Slaughter Cow PricesBreakers 75-80%

2015, 2016 and 5-year average

2011/2015 2016 2017

9

Dickson Livestock Center - November 27, 2017 1 load of49 steers; avg. wt. 843 lbs.; $153.50

11/28/17 TN Livestock Producers Fayetteville Receipts: 637 (226 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 130.00-146.00 300-400 lbs 119.00-120.00 400-500 lbs 146.50-157.00 400-500 lbs 121.00-134.00 500-600 lbs 140.00-155.50 500-600 lbs 120.00-131.00 600-700 lbs 131.00-141.50 600-700 lbs 118.00-126.50 700-800 lbs 129.00-137.50 700-800 lbs 115.00 800-900 lbs 130.00-138.50 Bulls: Med & Lg 1-2 400-500 lbs 139.00-150.00 500-600 lbs 132.50-139.00 600-700 lbs 121.00 700-800 lbs 110.00-113.00 11/28/17 Somerville Livestock Sales Receipts: 294 Steers/Bulls: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 144.00-165.00 300-400 lbs 120.00-135.00 400-500 lbs 137.00-167.00 400-500 lbs 124.00-142.00 500-600 lbs 123.00-145.00 500-600 lbs 122.00-133.00 600-700 lbs 118.00-125.00 600-700 lbs 117.00-123.00 700-800 lbs 114.00-126.00 700-800 lbs 112.00-118.00 800-900 lbs 108.00-115.00 Pre-Conditioned Steers/Bulls: Med & Lg 1-2 600-700 lbs 135.00-142.00 700-800 lbs 118.00-135.00 800-900 lbs 125.00

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

11/27/17 KY/TN Livestock Cross Plains Receipts: 350 Steers: Med & Lg 1-2 Heifers: Med & Lg 1 400-450 lbs 142.00-160.00 300-350 lbs 135.00-145.00 450-500 lbs 145.00-156.00 350-400 lbs 136.00-150.00 500-550 lbs 140.00-148.00 400-450 lbs 131.00-145.00 550-600 lbs 136.00-147.00 450-500 lbs 132.00-143.00 600-700 lbs 128.00-137.00 500-550 lbs 126.00-138.00 800-900 lbs 132.00 550-600 lbs 125.00-136.00 600-700 lbs 600-700 lbs 126.00-132.00 700-800 lbs 120.00-130.00 800-900 lbs 112.00-116.00 Bulls: Med & Lg 1-2 300-350 lbs 152.00-163.00 350-400 lbs 148.00-161.00 400-450 lbs 142.00-160.25 450-500 lbs 143.00-155.00 500-550 lbs 132.00-140.00 550-600 lbs 133.00-138.00 600-700 lbs 126.00-130.00 700-800 lbs 117.00-122.00 11/27/17 Morris Brothers Stockyard, Pikeville, TN Receipts: 141 Last Week: 85 Last Year: 114 Steers: Heifers: 250-299 lbs 106.00 200-249 lbs 122.50 350-399 lbs 139.00-140.00 300-349 lbs 130.00-139.00 400-449 lbs 135.00 350-399 lbs 120.00-128.00 450-499 lbs 91.00-139.00 400-449 lbs 105.21-127.00 500-549 lbs 115.00-139.00 450-499 lbs 114.00-124.00 550-599 lbs 101.00-135.00 500-549 lbs 113.02-125.00 600-699 lbs 98.00-129.00 550-599 lbs 118.00 700-799 lbs 115.00-129.00 600-699 lbs 110.00-123.50 Over 799 lbs 107.00-121.00 700-799 lbs 102.00-122.00 Over 799 lbs 83.00-86.00 Bulls: 200-249 lbs 152.50 250-299 lbs 152.00 300-349 lbs 144.00 350-399 lbs 106.16-134.00 400-449 lbs 130.00-134.00 450-499 lbs 108.67-127.00 500-549 lbs 120.00-125.00 550-599 lbs 115.00-124.00 600-699 lbs 121.00-122.00

(Continued on page 10)

Self-Reported and Self-Graded Livestock Markets

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11/24/17 Coffee County Livestock Market Graded Goat and Sheep Sale Manchester, TN Receipts: 588 (342 Goats; 246 Sheep) Next Sale Dec 8, 2017 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 206.00 202.00-235.00 31-45 lbs 220.00-240.00 217.00-219.25 200.00-210.00 46-60 lbs 240.00-243.00 230.00-236.00 210.00-220.00 61-80 lbs 225.00 222.00-227.00 200.00-205.00 81-100 lbs 200.00-215.00 200.00-230.00 Feeders 25-55 lbs 185.00-224.00 Replacement Nanny Goats Yearlings 50-100 lbs 151.00-193.00 Small 65.00-85.00 Nannies 76-125 lbs 127.00-155.00 Medium 100.00-135.00 Nannies Over 125 lbs Large 140.00-175.00 Nannies Thin 101.00-125.00 Billies 76-125 lbs 150.00-154.00 Billies Thin 125.00-132.50 SHEEP: Slaughter Lambs-Includes all breeds, sold per hundred weight (cwt). Choice and Prime 40-60 lbs 192.00-215.00 Good 168.00-202.00 Choice and Prime 60-80 lbs 172.00-200.00 Good 169.00-180.00 Choice and Prime 80-100 lbs 154.00-169.00 Good 141.00-157.00 Choice and Prime 100-120 lbs 135.00-147.00 Feeders 25-65 lbs 159.00-186.00 Yearlings 121.00-123.00 Ewes 75.00-120.00 Replacement Ewes: Ewes Fat 100-115 lbs 135.00 Rams 87.50-105.00 140-170 lbs 142.50-155.00 Rams Fat

Self-Reported and Self-Graded Livestock Markets Self-Reported and Self-Graded Livestock Markets

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Stocker sector makes beef industry engine hum Wes Ishmael Nov 29, 2017

Although the stocker sector is the most nebulous part of U.S. beef production—who the producers and cattle are at a given point in time is a moving target—it’s easy to argue the sector serves as the fulcrum that makes current industry efficiency possible.

That has everything to do with the fact that such a high per-centage of U.S. cows calve in the first half of the year—72%, according to the most recent Overview of the United States Cattle Industry from USDA’s National Agricultural Statistics Ser-vice (NASS). Most of those in the spring months.

It also has to do with the fact that so many U.S. operations with beef cattle produce so few cattle and they do so across such a variety of environments and management schemes.

Stocker operators warehouse cattle, spread seasonal surpluses and deficiencies into a balanced mix of volume, which in turn, makes it possible for U.S. consumers to purchase fresh beef every day of the year for the same relative price.

The stocker sector assembles cattle and sorts them into more homogenous lot-sized groups—weight, sex, type, etc. Along the way, stocker producers straighten out the high-health-risk cattle that most feedlots want to avoid.

On both counts, if not for the stocker sector, odds are that cattle prices would be lower on average, while there would be sweeping seasonal gaps in cattle and beef prices.

Derrell Peel, Extension livestock marketing specialist at Okla-homa State University (OSU), often and rightfully describes the stocker sector as the beef industry’s shock absorber.

“The stocker sector serves a critical role in providing flexibility to enhance beef industry competitiveness, including adjusting production in response to feed and forage market changes, enhancing the quality of feeder cattle by adding weight and age to stocker cattle, and regulating the flow of cattle from cow-calf production to the feedlots,” Peel explains.

There are lots of ways stocker operators skin the proverbial cat,

Beef Industry News Featured Article from BEEF Magazine

too. Just consider the past winners of BEEF’s National Stocker Award sponsored by Zoetis. You can read about them online and also meet the newest winner in the December issue of BEEF.

Yet, relatively little is known about who stocker operators and backgrounders are exactly, and what makes them tick.

That’s why OSU teamed up with NASS last summer to survey the state’s cattle producers.

Specifically, Peel says the primary objective of the survey was to identify stocker producers and how the stocker industry in Oklahoma operates. He explains, “This survey will provide in-sight into stocker production and management practices, in-cluding timing and duration of stocker production; health man-agement; forage use; purchasing and marketing of stocker cattle; timing and distance of shipping; and biosecurity practic-es.”

The dearth of stocker data is also why BEEF magazine conduct-ed the National Stocker Survey (NSS), sponsored by Elanco Ani-mal Health, a decade ago. It remains the only national effort along these lines. Despite its age, the results remain valid rela-tive to newer efforts. I reviewed it and presented highlights earlier this fall to New York producers as part of a new stocker short course offered by Cornell University.

For instance, of those involved in stocker/backgrounding pro-duction, only a minority are involved in the sector exclusively.

According to preliminary results from the OSU survey, 5.1% indicated stocker-backgrounding was their sole involvement in cattle production. Another 19.4% indicated they were involved in both stocker and cow-calf production. All told, 45.3% of pro-ducers responding to the survey are involved in some form of stocker production when separate stocker/backgrounding ac-tivities are considered along with retained calves from cow-calf production.

Finish reading at:

http://www.beefmagazine.com/ranching/stocker-sector-makes-beef-industry-engine-hum

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