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Issue # 576
Ohio Beef Expo Kicks Off March 14
The Ohio Beef Expo will kick off for its 21st year on March 14. The three day event, held March 14-16 at the Ohio Expo Center, is the premier event of Ohio's Beef Industry. Plans are being finalized and this year's event is shaping up to be the best ever with breed sales, shows, trade show, a competitive junior show and new for 2008, educational seminars.
The event begins Friday morning with the opening of the trade show at 10 a.m. Also starting on Friday morning is a new attraction for 2008, educational seminars. These seminars will take place throughout the day on Friday and Sunday and will offer producers the opportunity to learn how to make their operation more efficient and profitable. A complete list of seminars is listed on www.ohiobeefexpo.com.
The Expo will once again include a three-day industry trade show. This year's trade show is the largest ever and will feature over 100 exhibitors from 16 states. The breed shows, sales and displays will once again feature some of the country's greatest cattle. Breeders from the Angus, Charolais, Chianina, Gelbvieh, Hereford, Limousin, Maine-Anjou, Murray Grey, Piedmontese, Shorthorn and Simmental breeds will be on hand to sell or display their cattle. Catalogs for these sales can be requested by logging on to www.ohiobeefexpo.com and clicking on the sales link.
The ever-popular Genetic Pathway will once again be a feature of the upper concourse of the Voinovich Livestock and Trade Center throughout the weekend. The country's best genetics will be featured with live bulls and females on display.
Another attraction for the 2008 Expo is the junior show fitting demonstration, contest and junior social that will happen on Friday evening. The excitement will begin with a fitting demonstration at 5 p.m. followed by the fitting contest featuring 10 youth teams and the night will be capped off with a junior social and pizza party. These events are sponsored by Purina-Show Chow Feeds, eZall and Farm Credit Services.
The junior show will kick off Saturday afternoon with Showmanship and will start again early Sunday morning with the heifer and market animal shows. Complete rules for the show can be found on www.ohiobeefexpo.com
Over 25,000 visitors from 20 states and Canada routinely attend the Ohio Beef Expo. It is ranked as the ninth largest event hosted in central Ohio and is the premier location to meet Ohio's cattle producers. Don't miss it! If you are unable to attend the event, visit www.ohiobeefexpo.com during the event because all results will be posted as it is available.
For complete details on the 2008 Ohio Beef Expo, visit www.ohiobeefexpo.com. The Ohio Beef Expo is a function of the Ohio Cattlemen's Association (OCA). The OCA is an affiliate of the National Cattlemen's Beef Association and is the state's spokesperson and issues manager for all segments of the beef cattle industry including cattle breeders, producers and feeders. It is the grass roots policy development organization for the beef business. Through the Ohio Cattlemen's Association, cattle producers work to create a positive business environment, while providing consumers with a safe and wholesome product.
Bull Buying Basics - The Package Counts, Not the Wrapping - Kris Ringwall, Beef Specialist, NDSU Extension Service
Buying bulls can be simple if we can separate the wrapping from the package. The package is what counts, but many times we get all "wrapped up" in the way the package looks.
This is very similar to buying the perfect gift and then spending hours picking out the wrapping paper. We spend a lot of time on the wrapping paper, so much in fact that we may run out of time buying the right gift.
In reality, we don't keep the wrapping in the beef business. What is inside the wrapping is what gives the package real meaning.
The industry today has adopted and implemented a genetic selection process called expected progeny differences (EPDs). EPDs are based on a thorough statistical evaluation of actual data. The data started appearing in bull catalogs years ago.
Through the years, the concept has caught on and is now the basis for determining just what is in the package, despite the wrapping. The data makes it easy for producers to compare EPDs from one bull in a breed with another bull in the same breed.
After comparing data, producers quickly can calculate the expected progeny differences of the two bulls being compared. (Across-breed comparisons can be made if the EPDs are correctly adjusted. However, that is another BeefTalk column.)
The expected progeny difference is expressed for each particular trait in the common language used for the trait. For example, growth traits generally are expressed in pounds, while height traits are in inches and ribeye size in square inches.
There are many traits. The American Angus Association lists EPDs for calving ease direct, birth weight, weaning weight, yearling weight, yearling height, scrotal circumference, calving ease maternal, maternal milk production, mature weight, mature height, carcass weight, marbling, ribeye area, fat thickness, and ultrasound intramuscular fat, ribeye area and fat thickness.
Every one of these EPDs can be utilized to compare different bulls by comparing the differences in the EPD values. Given all the traits, many breed associations have further simplified sire selection by creating and calculating multitrait selection indexes to further help producers in their selection process.
The index EPD values can be compared across bulls. If one is in the business of breeding beef, within an arm's length of the desk chair are publications with information on bulls and their individual EPDs.
The "Spring 2008 Pasture to Plate Genetics" publication published by ABS Global Inc. arrived recently. ABS is one of several companies that market cattle genetics covering several breeds.
On page 39, individual Angus bulls are listed as curve benders and growth. The data on these bulls would have been analyzed by the American Angus Association. If one goes to the Web page of the American Angus Association (http://www.angus.org/), it is easy to locate the same numbers for these bulls. It also has a detailed explanation of the traits. These are growth bulls and one quickly can glance down the rows and compare the bulls.
The first bull listed is Extra K205 and has a listed weaning weight EPD of plus 55. The second bull listed is Alliance I87. He has a listed weaning weight EPD of plus 63.
In terms of weaning weight, the second bull listed is predicted to produce calves that average 8 pounds heavier than calves from the first bull listed. As producers of beef, one probably does not need to utilize all the genetic information that is available on sires today. However, the more one understands, the more likely one will be pleased with the outcome.
Yes, the wrapping is important. A well-wrapped package sells well, but don't forget, it's what's in the package that counts.
Forage Focus: Increasing the Digestion of Forages with Protein Supplementation - Francis L. Fluharty, Ph.D., Department of Animal Sciences, The Ohio State University (excerpted from Optimizing Performance of Cattle by Increasing the Digestion of Forages with Protein Supplementation)
Ruminant animals in grazing situations need to maximize forage digestion in order to increase performance parameters such as average daily gain or milk production. Factors that limit the animal's ability to reach production goals may include the forage's energy and protein content, or availability. These factors are impacted by the forage species, maturity, lignin concentration, and ruminal ammonia requirements of cellulose digesting bacterial species.
However, unlike grain-based diets, there is a time period, referred to as the lag phase, required for cellulose digesting bacteria to attach to forage particles. This creates a situation where protein availability in the rumen must match the timing of energy availability in order to achieve optimum microbial digestion.
Several factors have been shown to alter bacterial degradation of protein, and, in turn, the amount of microbial protein reaching the ruminant small intestine. In production situations where energy is limiting, either because of relatively low-quality forage such as native tall grass prairie, mature fescue, or corn stover, etc., or in production situations where there is reduced dry matter intake, microbial protein reaching the small intestine may be insufficient to maximize animal growth, and ruminally undegradable intake proteins (UIP, or bypass protein) may be warranted.
In diets based on crop residues, and low-quality or mature forages, sufficient evidence is available to justify feeding combinations of ruminally available (DIP) protein sources such as urea or soybean meal (SBM) in combination with UIP sources that mostly bypass rumen degradation but are available for enzymatic degradation in the small intestine if not over-heated during drying. Common sources of UIP include corn gluten meal, distillers grains, feather meal, fish meal, or blood meal.
One way to make more of the cellulose and hemicellulose, the primary carbohydrates in forage, available would be to grind the forage and thereby increase the amount of carbohydrates available for immediate attachment by bacteria. However, in many production situations, it is not possible or feasible to grind forage. In these situations, it is simply more economical and easier to provide N for the ruminal bacteria and use bypass protein sources, in combination, to maximize performance.
Protein supplementation costs can be reduced if a portion of the DIP comes from non-protein nitrogen (NPN) sources such as urea or biuret. In fact, cellulolytic bacteria prefer ammonia (NH3) as their N source, so substituting NPN for a portion of the degradable true protein in supplements for range cows should be a viable option.
In summary, supplying combinations of DIP and UIP could best meet the animal's amino acid requirement through maximizing microbial growth and cellulose digestion, as well as providing amino acids from both microbial and feed origin to the small intestine. This, in turn, can maximize forage digestion in order to increase performance.
EDITOR's NOTE: With the value of forages double or more what they've ever been, and likely to remain there in the foreseeable future, it's more important than ever that forages are fed and supplemented in a way that maximizes their efficiency. Optimizing Performance of Cattle by Increasing the Digestion of Forages with Protein Supplementation is one of the issues which will be explored during the upcoming Ruminant Livestock: Facing New Economic Realities programs. Find more details and reservation information in recent Ohio BEEF Cattle letters.
Weekly Roberts Agricultural Commodity Market Report - Mike Roberts, Commodity Marketing Agent, Virginia Tech
LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) were up on Monday. FEB'07LC futures finished up $0.600/cwt at $92.600/cwt; $0.430/cwt higher than two weeks ago. The APR'08LC contract closed at $94.825/cwt, up $0.850/cwt and $0.725/cwt higher than Monday before last. JUNE'08LC futures were up $0.625/cwt at $95.025/cwt. Good demand for cash cattle and a good report last Friday drove the market. Technical buying fueled gains amid local selling half way through the trading day. Friday's Cattle on Feed report is seen as bullish for later months because January placements were up about 6% instead of the expected 9.5%. USDA put the February 1 Feedlot supply at 11.966 mi head, up 2% from a year ago and the second largest February supply since 1996. The market had expected as much and was able to move higher amid stronger cash cattle. USDA's 5-area price was up $0.50/cwt to $91.57 on Monday. As long as margins are in the black, packers can pay more for cash cattle. USDA on Monday put the choice boxed beef cutout at $148.60/cwt, up $0.39/cwt. According to HedgersEdge.com, packers netted an estimated $7.40/head on Monday with the estimated breakeven set at $91.56/cwt. Cash sellers should hold cattle and sell only when cattle are ready. It might be a good idea to hold off pricing corn inputs at this time unless you want to do some hedging with the nerve for margin calls … or … you might sell some put options.
FEEDER CATTLE at the CME were up on Monday with the exception of the May '08 and the January '09 contracts. MAR'08FC futures closed at $104.200/cwt, up $0.275/cwt but $1.700/cwt lower than two weeks ago. MAY'08FC futures were down $0.150/cwt $110.500/cwt; $2.550/cwt lower than Monday before last. Feeders were mostly firm at the end due to short covering, a rise in cash live cattle prices, and March/April bull spreads. Feeder supplies are still pretty tight even though there were a fair number of feeders at the closely watched Oklahoma City feeder auction,. The latest CME feeder cattle index for February 22 was placed at $103.86/cwt, up $0.12/cwt. It might be a good idea to hedge corn inputs at this time or sell a put option or two.
CORN on the Chicago Board of Trade (CBOT) soared on Monday. The MAR'08 contract finished up 11.0¢/bu at $5.332/bu; 29.8¢/bu (5.9%) higher than two weeks ago. The DEC'08 contract closed up 7.0¢/bu at $5.572/bu; 32.0¢/bu (6.1%) more than Monday before last. Corn is at record levels trying to hold on to acres for spring planting. One floor source said, "As long as big fund money keeps pouring in buying commodities we're going higher and food prices are going to get really expensive." Volume was huge at 373,805 futures and 73,709 options. Even though funds bought an estimated 12,000 contracts most of that were spreads as Index funds rolled March positions before the first notice of the ending February contract. Exports did well as 46.63 mi bu of corn was inspected for export vs. expectations for between 40.0-45.0 mi bu. In weather news, heavy snows in the U.S. Midwest have contributed good soil moisture for spring plantings as Argentina's weather continues to be spotty at best. Argentina is the No. 2 corn exporter behind the U.S. Friday's CFTC Commitment of Traders report showed large speculators in very bullish positions at 328,541 contracts, up 11,783 lots. Bearish positions for some large speculators were placed at 73,403 contracts, down 6,938 lots. It probably is a good thing not to price any more corn for the time being. Corn is looking more golden now than ever before. If you're worried about a falling market for December '07 corn anytime soon you could spend 65.0¢/bu for an at-the-money put … however, that is really expensive and corn would have to lose as much as 12% of its value to warrant that. The market is saying it just doesn't think that is going to happen.
SOYBEAN futures on the Chicago Board of Trade (CBOT) were up on Monday. The $64.00 question from the last report seems to have been answered … this market has more room for upward movement. The MAR'08 contract finished at $14.520/bu up 32.0¢/bu and up $1.26/bu (9.5%) from two weeks ago. The NOV'08 soybean contract ended at $14.170/bu, up 26.4¢/bu and $1.35/bu (10.5%) over Monday before last. China's population is demanding greater volumes of soyoil amid shortages of palm oil and edible oils in other countries. In addition, the Olympics are seen as one of the drivers behind the increased Chinese demand for food in that country. USDA placed soybeans inspected for export at 23.858 mi bu, below expectations for between 27.33 mi bu. Some weather concerns were noted in Brazil's soybean growing regions. In one place it was too dry, in another, too wet. Speculative money flooded into commodities amid outlook for greater food demand. As with corn futures, soybean futures volume was also large. Estimated trading was noted at 195,571 futures and 67,308 options. Index funds bought about 7,000 soybeans contracts. The CFTC Commitment of Traders report showed large speculators expanding net bull positions in soybeans. Index funds were noted as holding a record net long position in CBOT soybeans of 198,707 lots. It still might be a good idea to consider holding off pricing any more of the '08 crop if you are at 30%-40% priced. As noted earlier in this report, $15.00/bu beans are most likely not out of the question.
WHEAT futures in Chicago (CBOT) were limit up on Monday. Will CBOT wheat futures go to the 90.0¢/bu limit on Tuesday? Mar'08 futures closed at $11.094/bu, up 60.0¢/bu; 61.4¢/bu (5.7%) higher than two weeks ago. The JULY'08 contract closed at $10.464/bu, up 60.0¢/bu and 67.4¢/bu (6.9%) higher than Monday before last. U.S. spring wheat at the Minneapolis Grain Exchange went over the $20.00/bu level to a record $25.00/bu on Monday. Limits were set when Kazakhstan imposed export tariffs amid worries over shrinking world stocks. That country's Agriculture Ministry stated Sunday it has sold about 75% of its wheat and will protect the remaining 25% (~110 mi bu) with customs duties. Traders also took into account historic levels of bad weather as country after country reported wheat growing problems. In light of growing shortages, Canada announced it expects its 2008 all-wheat crop to increase by 25% or 5.109 mi tonnes (188 mi bu) from the 2007 20.054 mi tonne (737 mi bu) level. Surging demand for food products in quick-growing countries, including China and India, has magnified the short supply situation for world wheat. Wheat has more than doubled in price over the last year. The latest buzz is that U.S. consumers won't feel the crunch too quickly as big U.S. food companies normally lock up long-term supplies. However, if this keeps up, higher prices are to be expected. USDA put wheat inspected for export at 17.253 mi bu vs. expectations for between 18-22 mi bu. The CFTC Commitment of Traders report as of last Friday had large speculators decreasing net short positions in CBOT wheat by 1,500 contracts to 252 lots. It is still not advised to have more than 40% of the '08 crop priced. It also wouldn't hurt to see if 10% of the 2009 crop and 10% of the 2010 crop could be priced at this time.
Visit the OSU Beef Team calendar of meetings and upcoming events
BEEF Cattle is a weekly publication of Ohio State University Extension in Fairfield County and the OSU Beef Team. Contributors include members of the Beef Team and other beef cattle specialists and economists from across the U.S.
All educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status. Keith L. Smith, Associate Vice President for Ag. Admin. and Director, OSU Extension. TDD No. 800-589-8292 (Ohio only) or 614-292-1868
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