The WACKY WORLD OF CATTLE and COMMODITY PRICES

AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.


Well...several months of research and data down the drain! 


Here I was, all set to show you how the retail price to the customer was going to sky rocket this summer, how the price of corn and feed grains were too high for cattle producers to profit and, in general complain about how the cattle producer was being squeezed. 


Then, last week (June 30, to be exact), The USDA released "The Crop Report". 


Let me set this up...
In a nutshell, I was going to show:


1. Based on the late spring flooding of hundreds of thousands of acres of corn through the Midwest to Arkansas and Louisiana, the persistent cool weather and rains across the farm belt that have delayed annual plantings, and the devastating effects of storms and tornados across the mid-section of our country as well as through the South would drive the prices of corn and grains to all time highs. 


2. Because these commodities were the back bone of "grain fed" beef, the price of consumer prices for beef would rise, while the cattle producer would struggle to make a profit DUE to the higher costs associated with feeding cattle grain. 


AND, I was right (ever so briefly) ...corn and soybean prices were soaring and cattle producers, who are currently reaping very high prices for their cattle, were having their profit squeezed by the high cost of feeding corn...


Which brings me back to "The Crop Report"......

Turns out, the expected 2011 corn harvest will be much higher than expected and the harvest of other important food grains are also going to be well above average......This caused both corn and soybeans to back off of their "highs" by more than 10%. Grain commodities will continue to trend down over the next few weeks to very manageable cost levels for the beef industry.

GRAINS-U.S. corn extends losses after USDA report
                                                                                        Reuters News Service

So, what we have, currently, is the most rare of events in the cattle markets. The producer is actually receiving record prices for cattle while also enjoying "cheap feed"!! In other words, cattle producers are in a position to maximize profits not only through "lower input costs", but also while receiving historically high prices for their livestock.

"

Compared to last week’s sharply higher market, yearling feeder cattle 

continued their momentum and sold firm to 5.00 higher.  Steer and heifer calf 

demand improved on the heels of last week’s gains and traded from steady to 

6.00 higher with instances as much as 10.00 higher.  The most impressive 

signal of this week’s higher trade was the fact that it took place on fairly 

heavy receipts for this time of year with no help from the CME futures or fed 

cattle trade until the tail-end of the week." - USDA CATTLE AUCTION REPORT, JULY 1, 2011

Meanwhile, consumer prices for retail beef are still going up due to the inverse relationship with the above financial factors...the record high prices paid to producers are being "passed along" to the consumer.


"...higher corn costs—all higher costs—ultimately wend their way through the system and wind up in the retail price of the product..."  Burt Rutherford, Senior Editor, Beef Magazine

SHUT UP and EAT!

Time to Quit Complaining about Our Food and Do Some Healthy, Delicious Eating... Grab a Fork!


Grass Fed Burger Recipe
(From Cindy and Bob in Fort Worth)

Grass Fed burgers with red onions and mushrooms:
For two burgers:
 2 TBSP olive oil
 1/2 sweet red onion, sliced super thin
 1 portobello mushroom 1/4 inch slices
 1/2 cup good red wine ( pinot noir, merlot…you choose)
 ground pepper (lightly)
 Pinch of sea salt ( add after wine or mushrooms)
 
  Heat saute pan, add cool oil, when heated, saute
  onions 2-3 minutes. 

  Add mushrooms, cook additional 2 minutes. Add wine,
  pepper and salt to taste.
  Cook until wine is reduced.

  Ladle over Beef patty, on split grilled Kaiser roll.

 Cowboy Beef and Black Bean Chili. 
(Takes about 2 hours to prepare)

Ingredients:
2 pounds Grass-Fed ground beef
1 tablespoon vegetable oil
1-1/2 cups chopped onions
2 tablespoons minced garlic
2 medium yellow bell peppers, chopped
1 large jalapeño pepper, seeded, finely chopped
1/4 cup chili powder
1 tablespoon ground cumin
1 teaspoon dried oregano leaves, crushed
1 teaspoon dried thyme leaves, crushed
1/8 teaspoon ground red pepper
1 can (28 ounces) crushed tomatoes, undrained
1 can (14-1/2 ounces) chili-seasoned or zesty-style diced tomatoes, undrained
1 can (14 ounces) ready-to-serve beef broth
12 ounces dark beer
1/3 cup tomato paste
1 tablespoon honey
2 cans (15 ounces each) black beans, rinsed, drained
Chopped fresh cilantro (optional)
Instructions:
1. Brown ground beef in stockpot over medium heat 8 to10 minutes or until beef is no longer pink, breaking up into 3/4-inch crumbles. Remove from stockpot with slotted spoon. Set aside. Pour off drippings.
2. Heat oil in same stockpot over medium heat until hot. Add onions and garlic; cook and stir 3 to 5 minutes or until onions are tender. Add bell peppers and jalapeño; cook and stir 4 to 5 minutes or until peppers are tender.
3. Return beef crumbles to stockpot. Add chili powder, cumin, oregano, thyme and red pepper; cook and stir for 2 to 3 minutes. Stir in crushed tomatoes, diced tomatoes, broth, beer, tomato paste and honey; bring to a boil. Reduce heat; cover and simmer 45 minutes. Uncover stockpot; continue simmering 30 minutes or until thickened to desired consistency, stirring occasionally. Stir in beans; cook 5 to 10 minutes or until beans are heated through. Season with salt and black pepper, as desired. Garnish with cilantro, if desired.
Makes 8 servings.

TEXAS SALSA MEATLOAF
Ingredients
2 lbs. Grass-fed ground beef
¾ c. Italian seasoned bread crumbs
1 egg
1 tsp. kosher salt
½ tsp. black pepper
½ tsp. ground cumin
¾ c. salsa (your preference)
Directions:
Preheat oven to 325 degrees F.
Combine all ingredients by hand, mixing very thoroughly. If mixture seems too dry or crumbly, add more salsa to increase moisture.
Shape mixture into a loaf and place in glass baking pan. There should be no need for a loaf pan here, although you can use one if you’re a strict traditionalist.
Bake for approximately 90 minutes, until internal temperature reaches 160 degrees. Allow to rest for 20 minutes before carving.
Glaze (optional)
½ c. catsup
1 tsp. Worcestershire sauce
½ tsp. Tabasco (or other hot sauce)
1 tsp. ground cumin
1 ½ tbsp. Honey
Mix all ingredients together and baste loaf every 15 minutes after the first 10 minutes of cooking. Serve with extra glaze on the side for dipping and drizzling.

HOPE Y'all Enjoy!