The latest CFTC report shows the funds had added to LONG positions in corn and soybean futures through Tuesday.  And have probably added to longs the rest of this week.

The U.S. Dollar Index has now surged to its highest level since mid-2010, surpassing the last high in mid-2012. This makes U.S. commodities more expensive for our export customers.

CME Cattle futures closed lower and near the day’s lows as traders booked profits ahead of this afternoon’s USDA Cattle on Feed Report. The COF came in fairly close to expectations and shouldn’t be a deciding factor for next week’s trade.  Rather consumer demand for beef at the new record high CHOICE BEEF CUTOUT values will decide what packers are willing to pay the feedlots.  This week’s trade was down slightly from last week.   The CFTC report showed the funds had liquidated some of their cattle long positions as of Tuesday.  More liquidation probably occurred the rest of the week.

Lean Hog futures closed lower, with bigger losses in the June and July contracts. After a strong week in cash hog, pork and futures prices, it wasn’t surprising to see a setback to end the week.

Corn Jly +11 653 (638-656); Sep +2 556; Dec -4.5 519.5
Bean Jly +21 1448.5 (1424-1449); Sep +18 1289; Nov +11 1228
Meal Jly +10 425; Dec +5 346.5
Oil unch 4952
Wheat Jly -4.5 683; Dec -5.5 707.5; Jly’14 -5 734
KC -6 737;  MGE unch 804
Oats -2 375
Rice -4 1523

LC Jun -50 11940; Aug -117 11855; Dec -75 12352
FC May -112 13390; Aug -175 14337; Oct -142 14780
LH Jun -135 9152; Aug -75 9015; Oct -25 8030
Milk May +1 1852; Jun -9 1836

US$ +.5%
Dow +121 15354
SP +17 1667
NAS +34 3499
Tran +81 6549
VIX -.62 12.45

WTI +86 9602
Brent +12 10380
Gas +2.5 291
NG +12 405.5
HO +3 294
Eth +4 267

Gold -22 1365
Slvr -31 2235

2-yr +.01 0.24%
5-yr +.04 0.83%
10yr +.07 1.95%
30yr +.07 3.17%

United States Cattle on Feed Down 3 Percent

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on May 1, 2013. The inventory was 3 percent below May 1, 2012.

Placements in feedlots during April totaled 1.75 million, 15 percent above 2012. Net placements were 1.68 million head. During April, placements of cattle and calves weighing less than 600 pounds were 375,000, 600-699 pounds were 270,000, 700-799 pounds were 455,000, and 800 pounds and greater were 650,000.

Marketings of fed cattle during April totaled 1.86 million, 2 percent above 2012. 

KENTUCKY CASH GRAIN BIDS – Click Here

Chicago and KC wheat futures are lower on technical selling and improved growing conditions.  MGE Wheat continues to gain on KC/CBOT due to delayed planting and emergence.

The US dollar is stronger today and this is weighing on energy, metals and commodities in general.  However, US equities continue to charge higher on the highest level of consumer sentiment in nearly six years.  The Thomson Reuters/University of Michigan’s preliminary reading on the overall index on consumer sentiment rose to 83.7 from 76.4 in April, topping economists’ expectations for 78.  The Conference Board said its Leading Economic Index increased 0.6 percent to 95.0 last month, the highest level since June 2008.  Economists expected a rise of 0.2 percent.

Cattle futures are weaker ahead of this afternoon’s Cattle on Feed Report. Cash cattle trade has been weak, but Choice Beef has been at/near record highs.

The Dow Jones survey shows the average trade guess at 96.3% on-feed May 1; 112.1% April Placements; and 102.9% April Marketings.

Access the COF Report after 2 pm CDT at http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1020

Lean Hog futures are slightly higher as this week has seen a strong rally in cash hog and pork values as well as LH futures. Futures are now near the highs posted this spring so further gains may be more challenging without the cash markets leading futures.

Corn Jly +9 651; Sep unch 554; Dec -3 521 (517-527)
Bean Jly +5 1432; Sep +1 1273; Nov -1 1216 (1211-1226)
Meal Jly +2.5 417.5; Dec unch 342
Oil -7 4945
Wheat Jly -6 681; Dec -7 706
KC -7 736; MGE -1 803
Oats unch 378
Rice -2 1526

LC Jun -7 11982; Oct -32 12255; Dec -22 12405
FC May -22 13480; Aug -87 14425; Oct -62 14860
LH Jun +17 9305; Aug +17 9107; Oct +25 8080
Milk May -1 1850; Jun -16 1829

US$ +.5%
Dow +.4%
SP +.5%
NAS +.5%
Tran +.8%
VIX -3.7% 12.58

WTI +.3%
Brent +.1%
Gas +.5%
NG +.7%
HO +.5%
Eth +1.3%

Gold -1.7%
Slvr -1.7%

5-yr +.01 0.80%
10yr +.03 1.91%
30yr +.03 3.13%

Kentucky Weekly Livestock Summary for 10 through 16 May, 2013

Receipts
This Week    Last Week  Last Year
20,217        22,275     17,321

Compared to last week:  Feeder Cattle and Calves were steady to 2.00 lower with moderate demand.  Prices continuing to receive pressure from lower futures in both the Live and Feeder Cattle contracts for nearby months, and consecutive weeks of lower Fed Cattle prices.  Most of the seasonal demand for calves to turn out to pasture is behind us as temperatures slowly increase to a level expected for this time of year.Slaughter Cows and Bulls 1.00-3.00 higher as warmer weather fuels the demand for beef.  Historical prices for beef leaves many consumers trading down to ground beef to continue to enjoy their protein of choice.  Historic price levels in tandem with lower cow numbers helps push cull prices higher.

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 37 percent and Heifers approximately 43 percent.  Steers and Heifers over 600 lbs totaled approximately 49 percent.  Replacement cattle 2 percent.

KENTUCKY CASH GRAIN BIDS – Click Here

Corn futures closed lower on weak export sales and rapid planting progress this week (although arriving rain will take many out of the field).  Corn was also weighed on by another day of losses in the CBOT Wheat pit.  Given a lack of production problems around the globe, wheat supplies may need to price in more feed usage.

Technically, July Chicago Wheat broke down through trendline support yesterday, followed by trades today below the late April lows.  The next support is 6.65.  Kansas City HRW July contract didn’t break down technically as much as Chicago SRW July. Traders will soon have harvest pressure on their mind.

Soybean futures stood alone in the PLUS column.  July closed up sharply on the tight supply situation with extremely high basis levels.  New-crop benefitted from ideas farmers have had a good week of corn planting. The July Soybean contract topped out at the 200-day moving average.

 NOTE: The new-crop Soybean/Corn price ratio is about 2.4 at Ohio River grain elevators.

For what it’s worth, the June-August 2013 outlook from NOAA indicates normal to above normal temperatures for the Corn Belt as well as mostly normal precipitation, on average.  See maps at http://www.cpc.ncep.noaa.gov/products/predictions/long_range/seasonal.php?lead=1

Cattle futures closed slightly lower even as the Choice Cutout value hits new highs — Choice up 0.82 at 208.77; Select down 0.04 at 192.71.  Some cattle sold for $125/cwt today, down $1 from last week.  Traders may have to see how beef demand holds up after Memorial Day before they will push CME futures higher.

Lean Hog futures closed higher supported by rising cash hog prices and surging pork values. The Pork Cutout was up 1.43 to $93.36/cwt, lifted by prices of bellies and ribs. McDonald’s said they are adding more bacon to their menu, but this would have been contracted before telling the world.

Competition from chicken has declined due to a reduction in its price advantage over pork/beef.  Today’s Daily Livestock Report by the CME Group stated the following:    “Boneless-skinless breasts reached an average of $1.87 per pound last week, over 30% higher than at the beginning of April. That price represents the highest weekly average price for this product since August 2004 — almost nine years ago. Last week’s price was 29.5% higher than one year ago.”    They credit KFC’s new boneless chicken products and higher exports to Russia.  On the other hand, wing prices have dropped sharply.  The Georgia Dock broiler price was record-high last week at $103.73, up 11 pct from a year ago, according to the CME newsletter.

US equity indexes closed lower on a late-day sell-off blamed on some Federal Reserve leaders talking about tapering the bond-buying program in the coming months.

Corn Jly -9 641.5; Sep -10 554; Dec -8 524
Bean Jly +15 1427.5; Sep +9 1271.5; Nov +8 1217.5
Meal Jly +4 415; Dec +2 342
Oil +17 4930
Wheat Jly -6 688; Sep -6 696; Dec -5.5 713
KC -8 743; MGE -2 796
Oats -2 378
Rice +5 1528

LC Jun -10 11990; Oct -5 12287; Dec -20 12427
FC May -5 13502; Aug -17 14512; Oct -12 14922
LH Jun +95 9287; Aug +40 9090; Oct +30 8055
Milk May +1 1851; Jun +29 1840

US$ unch
Dow -42 15233
SP -8 1650
NAS -6 3465
Tran -52 6468
VIX +.26 13.07

WTI +86 9516 (low 9323)
Brent +12 10380
Gas +1 288
NG -13 394
HO +3 291
Eth -.6 263

Gold -12 1384 (low 1368)
Slvr -2 2263 (low 2206)

2-yr -.01 0.23%
5-yr -.04 0.79%
10yr -.06 1.88%
30yr -.06 3.10%

Kentucky FSA Urges Producers to Enroll in DCP/ACRE
    May 16, 2013 — USDA Farm Service Agency (FSA) Kentucky State Executive Director,  John W. McCauley today encouraged farmers and ranchers to enroll for the 2013 Direct and Counter-Cyclical Payment Program (DCP) or the Average Crop Revenue Election Program (ACRE) before the deadline. Producers who wait until the last minute to sign up could face increased waiting time in FSA county offices.
The sign-up for both programs began Feb. 19, 2013. The deadline to sign up for ACRE is June 3, 2013. The DCP sign up period ends Aug. 2, 2013.
The 2013 DCP and ACRE program provisions are unchanged from 2012, except that all eligible participants in 2013 may choose to enroll in either DCP or ACRE for the 2013 crop year. This means that eligible producers who were enrolled in ACRE in 2012 may elect to enroll in DCP in 2013 or may re-enroll in ACRE in 2013 (and vice versa).
For more information about the programs and loans administered by FSA, visit any FSA county office or www.fsa.usda.gov.

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 05/14/13

Receipts:  2,248   Last Week:  2,008   Year Ago:  2,259
Compared to last week, steer and heifer calves sold mostly steady with good demand except few featherweight steers 5.00 to 10.00 higher in a light test.  Mostly good to attractive quality calves.  Yearling steers sold steady to 3.00 lower with light to moderate demand. Yearling heifers sold steady with good demand.  Slaughter cows sold 1.00 to 2.00 higher with very good demand.  Slaughter bulls sold steady with good demand.

Total supply included 07% slaughter cows, 02% slaughter bulls, 01% replacements and 90% feeders.  Feeder supply 40% steers, 19% bulls, 41% heifers with 52% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN BIDS – Click Here

The U.S. continues to crush more soybeans than expected given USDA’s season total forecast. However, corn futures are not getting a boost from the corn grind required by a strong ethanol industry. Yesterday’s ethanol data showed production was up 14,000 barrels per day to 857,000 barrels. Ethanol stocks came in 16.4 million barrels down 400,000 barrels from a week ago.

Cattle futures are trading just slightly lower but are near chart support levels. While CHOICE beef set a new record-high again yesterday at $208.18, fed cattle prices are yet to show strength. This has created an operating profit for the beef packers. Traders will prepare for Friday afternoon’s Cattle on Feed report which is expected to show: On-feed at 96.3%, placements of 112.1%, and marketings at 102.9%.

In contrast to cattle futures, Lean Hog futures are trading much higher and continue to test the upper end of the 3-month trading range. The Pork Cutout jumped yesterday by $1.02 to $91.93/.cwt. Picnics, loins and bellies have risen in value this week.

Poor U.S. economic data today is weighing on the US dollar’s value and supporting Treasury prices leading to falling yields (that have been strengthening before this week).

Corn Jly -6.5 644; Sep -5 558; Dec -4 527
Bean Jly +15.5 1428; Sep +9 1272; Nov +9 1219
  Meal Jly +5 415; Dec +3 342
  Oil +32 4945
Wheat Jly -9 685; Dec -8 710
   KC -10 742; MGE -1 797
Oats unch 379
Rice +7 1530

LC Jun +10 12010; Oct +7 12300; Dec -2 12445
FC May -20 13487; Aug -27 14502; Oct -37 14897
LH Jun +120 9312; Aug +80 9130; Oct +95 8120
Milk May unch 1850; Jun +9 1820

US$ -.1%
Dow +.1%
SP +.1%
NAS +.3%
Tran +.3%
  VIX +.2% 12.84

WTI +.9%
Brent +.3%
Gas +1.2%
NG -3.3%
HO +1.2%
Eth -.4%

Gold -.8%
Slvr -.5%

5-yr -.05 0.78%
10yr -.06 1.87%
30yr -.07 3.09%

ECONOMIC REPORTS 
   The Labor Department said the Consumer Price Index slipped 0.4 percent, the biggest decline since December 2008.  Analysts had expected a more modest 0.2 percent decline in last month’s prices.  In the 12 months through April, consumer prices rose 1.1 percent. That is well below the Fed’s 2 percent inflation goal.
  Weekly jobless claims rose an unexpected 32,000 to 360,000, according to the Labor Dept.
  Housing starts fell 16.5 pct in April to a rate of 853,000, well below expectations of 945,000.

  KENTUCKY CASH GRAIN BIDS – Click Here

Wheat futures are trading lower with Chicago down the most and MGE Spring Wheat down the least due to planting challenges in the northern Plains.

Outside markets are negative for commodity prices as the US dollar is stronger and energy futures and metals are lower. Today’s US economic reports were mostly negative (see bottom of message) but the stock market has rallied to new record highs for the Dow and SP500 indexes.

Cattle futures are mostly lower following Tuesday’s rally. Although boxed beef is very strong, cash cattle prices are yet to follow beef higher. Choice boxed beef set a new record high Tuesday at $206.09. Retailer buying for the Memorial weekend could begin winding down and slaughter is expected pick up. There is also a Cattle on Feed Report on Friday, so traders will be positioning for that. Funds are long Live Cattle futures.

Lean Hog futures are little changed today following Tuesday’s huge rally on stronger cash hog prices and pork values.

Corn Jly +2 655; Sep -1 569; Dec -1 537
Bean Jly -2 1412; Sep -1 1266; Nov +1 1215
   Meal Jly -2 410; Dec +1.5 341
   Oil -18 4958
Wheat Jly -9 702; Dec -8 727
    KC -6 761; MGE -2 804
Oats -6 378
Rice -13 1523

LC Jun unch 12077; Oct -42 12327
FC May -20 13530; Aug -70 14572; Oct -57 14975
LH Jun +27 9287; Oct +5 8130
Milk May +3 1852; Jun +17 1798

 US$ +.4%
Dow +.1%
SP +.2%
NAS +.2%
Tran +.9%
VIX +.8% 12.87

WTI -1.7%
Brent -.9%
Gas -1.7%
NG +.9%
HO -1.4%
Eth -.5%

Gold -2.3%
Slvr -3.4%

5-yr -.02 0.84%
10yr -.03 1.94%
30yr -.03 3.16%

Today’s Economic Reports
  The Labor Department said on Wednesday its seasonally adjusted producer price index fell 0.7 percent last month, the biggest decline since February 2010. Economists expected a 0.6 drop.  In the 12 months through April, wholesale prices were up only 0.6 percent, the smallest increase since July last year. Prices had increased 1.1 percent in March.

  Industrial production dropped by 0.5 percent last month after a revised 0.3 percent increase in March, the Federal Reserve said on Wednesday. Economists expected output to decline 0.2 percent in April.

  Home builders’ confidence rose in May more than expected, with sales expectations rising to the highest level in more than five years, according to the National Association of Home Builders.

Blue Grass Stockyards Cattle Report for 05/14/2013
Receipts:  1,276   Last Tuesday:  1,437   Year Ago:  1,033

   Compared to Monday, steer calves sold mostly steady, except 600-700 lbs firm undertone with good demand on a good through attractive quality offering.  Heifer calves sold mostly steady, except 400-500 lbs 2.00 higher with good demand on a good through attractive quality offering.  Yearling steers no comparison with yesterday, however compared to last week sold 2.00 to 3.00 lower in a light test.  Yearling heifers no test.  Slaughter cows and slaughter bulls sold steady with good demand.

   Total supply included 05% slaughter cows, 01% slaughter bulls, 01% replacements and 93% feeders.  Feeder supply 46% steers, 15% bulls, 39% heifers with 57% of feeders weighing over 600 lbs.

 KENTUCKY CASH GRAIN BIDS – Click Here

“While the bill contains many provisions compatible with the core farm bill proposal offered by Farm Bureau, we recognize that no farm bill is perfect and there is always room for improvement. We are pleased that the Senate held firm to its intention of limiting cuts to $23 billion. That will help maintain workable and viable commodity and conservation titles by limiting program cuts to levels that are fair for farmers and ranchers.

“We also believe that the bipartisan compromise to oppose means testing, payment limitations or premium subsidy reductions for the crop insurance program and to formalize a tie between crop insurance and conservation compliance helped set the tone of cooperation for this bill moving forward. Overall, this bill meets our firm position that the farm bill be bipartisan in nature, reform-minded in structure and crafted around a broad, flexible, crop insurance-based program that provides our farmers certainty and extends much-needed risk management tools across more acres and more crops.”

Tonight’s 6-10 day and 8-14 day forecasts indicate the Corn Belt should remain cooler than normal. This won’t help corn that is slow to be planted and even slower to emerge. http://www.cpc.ncep.noaa.gov/products/predictions/610day/index.php

 Wheat futures closed higher, lifted by the corn and soybean rally. However, wheat futures at all three exchanges closed well off the day’s highs since prices weakened as the trading day progressed. Note that Winter Wheat’s condition ratings stabilized from last week’s ratings.

Live Cattle futures opened strongly today, but fell off late morning after traders realized that boxed beef values were not going to surge higher today. Live Cattle futures need help from wholesale beef. Choice up 0.15 at 205.13; Select up 0.63 at 191.83. Feeder Cattle futures suffered minimal losses considering the rally in CBOT futures.

Lean Hog futures closed mid-range with modest gains, supported by higher cash hog prices and Pork Cutout which gained 0.83 to $90.70/cwt.

 Corn May +30 718; Jly +19 655.5; Dec +10 539
Bean May +33 1521; Jly +20 1419; Nov +4 1210
    Meal May +13.6 458; Jly +8 415; Oct +1 340.5
    Oil +38 4961
Wheat May +5 701.5; Jly +5.5 710; Dec +5 735
    KC +8 766.5;  MGE +4 812.5
Oats +3.5 382
Rice +18 1543

LC Jun +12 12057; Oct +20 12412; Dec -2 12565
FC May -52 13485; Aug -42 14620; Oct -40 15035
LH May -7 9192; Jun +42 9092; Oct +35 8095
Milk May -4 1851; Jun -34 1774 (down more than $2.00 since April 18)

U.S. CROP PROGRESS
Corn – Planted = 28 pct compared to 85 pct last year and 65 pct for 2008-12.
       Emerged = 5 pct compared to 52 pct year ago and 28 pct for 2008-12.  

Soybean – Planted = 6 pct compared to 43 pct year ago and 24 pct for 2008-12. 

Spring Wheat – Planted = 43 pct compared to 92 pct year ago and 63 pct for 2008-12.

CROP CONDITIONS
Winter Wheat: steady from last week with 32 pct good/excellent and 39 pct poor/very poor.  

US$ +.2%
Dow -27 15092
SP steady 1634
NAS +2 3439
Tran -31 6344
  VIX -.04 12.55

WTI -87 9517
Brent -136 10255
Gas -2 284
NG +1.5 392.5
HO -1.5 289
Eth +6.5 267

Gold -2 1434
Slvr -1 2364

2-yr unch 0.24%
5-yr +.01 0.82%
10yr +.02 1.92%
30yr +.03 3.13%

Blue Grass Stockyards Cattle Auction Report for 05/13/2013
Receipts:     972  
Last Monday:  571  
Year Ago:     348
    Compared to last week, steer calves under 500 lbs sold steady to firm, over 500 lbs sold steady to weak on a mostly average quality offering with moderate demand.  Heifer calves sold about steady with moderate to good demand, except 600-700 lbs sold 2.00 higher with good demand on an average to good quality offering.  Some farmer participation in the market for featherweight steers and 600-700 lbs heifers.  Yearling steers and yearling heifers untested.  Slaughter cows sold 1.00 to 2.00 higher with good demand.  Slaughter bulls sold steady with good demand. 
   Total supply included 10% slaughter cows, 03% slaughter bulls, 01% replacements and 86% feeders.  Feeder supply 31% steers, 24% bulls, 44% heifers with 45% of feeders weighing over 600 lbs.

Kentucky’s 2013 CRP Sign-Up Begins May 20
     May 13, 2013 — Farm Service Agency (FSA) State Executive Director John W. McCauley reminds landowners, farmers, and ranchers that the opportunity to enroll in the Conservation Reserve Program (CRP) general sign-up 45 begins Monday, May 20 and ends June 14. Producers who want to offer eligible land for CRP’s competitive general sign-up may enroll at the Farm Service Agency (FSA) county office where their farm records are maintained.

KENTUCKY CASH GRAIN BIDS – Click Here

Commissioner James Comer (left) pictured with new deputy state veterinarian, Dr. Bradley A. Keough, (right).

“Dr. Keough’s veterinary and management experience and his commitment to public service are unmatched,” said Agriculture Commissioner James Comer, who chairs the SBA. “We are honored to add him to our team at the Kentucky Department of Agriculture.”

Immediately prior to his appointment as deputy state veterinarian, Dr. Keough served as president of Buffalo Trace Veterinary Services in Versailles. Before that, he served as a shelter veterinarian for the Franklin County Humane Society and as an associate veterinarian for the Animal Medical Center in Frankfort.

A major in the 445th Medical Detachment, Dr. Keough has completed three deployments in support of Operation Iraqi Freedom and Operation Enduring Freedom. He has served in numerous countries in the Middle East and Africa as well as the Dominican Republic and Peru.

“I am excited to start this new chapter in my career and grateful to the State Board of Agriculture for this opportunity,” Dr. Keough said. “I hope to use my years of veterinary practice and military experience toward the advancement of agriculture and the professional and consistent management of the department.”

Dr. Keough was presented to the SBA by Kentucky State Veterinarian Robert C. Stout. Dr. Keough replaces Dr. Sue Billings, who retired from the department at the end of 2012 after nine years as deputy state veterinarian. Dr. Keough and his wife, Jacqueline, have two children, and they are expecting a third child in July.

“Most disturbing is that USDA has not provided scientific justification for why full environmental impact statements are needed, rather than the usual environmental assessments.”

“The prompt availability of new technologies, including crop varieties that are resistant to 2,4-D and dicamba herbicides, will allow America’s crop farmers to continue their legacy of continuous improvement—growing more food using fewer resources than ever before.”

Traders are anxious to get USDA’s reading on corn planting progress this afternoon with most expecting about 30 percent complete.

Cattle futures are trading higher waiting to see how boxed beef trades this week after setting a new record high on Thursday. June Live Cattle is trading at a discount to the last cash trade of $126-127.

Outside markets are negative for commodities.

Corn May +25 713; Jly +20 656; Dec +9 538.4
Bean May +22 1510; Jly +12.5 1411.5; Nov +7 1212
    Meal May +12 456; Jly +5 412; Oct +2 342
    Oil +22 4945
Wheat May +3 700; Jly +12 716; Dec +11 741
     KC +13 771; MGE +10 819
Oats May +20 429; Jly +3 381
Rice +21 1546

LC Jun +67 12112; Oct +55 12447; Dec +60 12627
FC May +37 13575; Aug +47 14710; Oct +37 15112
LH May -10 9190; Jun +87 9137; Oct +27 8087
Milk May -1 1854; Jun -28 1780 

US$ +.24%
Dow -.2%
SP unch
NAS +.1%
Tran -.2%
VIX +.3% 12.63

WTI -.8%
Brent -.9%
Gas -1.1%
NG +1.2%
HO -.3%
Eth +2%

Gold -.2%
Slvr +.5%

5-yr +.01 0.82%
10yr +.02 1.92%
30yr +.02 3.12% 

KENTUCKY CASH GRAIN BIDS – Click Here

CROP      2012/13     2013/14
Corn          759 mil.    2004 million bushels
Soybean   125 mil.        265 million
Wheat       731 mil.       639 million

2013/14 Corn Production is estimated by USDA at a record-high 14.1 billion bushels on a yield of 158 bu/acre (below trend due to slow planting pace).

2013/14 Soybean Production is assumed to be 3.39 billion bushels on an average yield of 44.5 bu/acre which is trendline yield.

All CBOT contracts fell sharply in the 15 minutes following the report’s release, but corn and soybean futures were able to recover some of those losses.  However, soybean meal and wheat closed near the day’s lows. Outside market action was bearish for commodities.  Higher-than-expected 2013/14 global wheatproduction and ending stocks estimates probably caused the severe losses in wheat futures.

Cattle futures closed mixed with the June Live Cattle slipping on a weaker fed steer market this week (down $2 to $126/cwt) despite a record high Choice Cutout value on Thursday of $205.49/cwt. Today, Choice beef was down 0.51 at 204.98; Select UP 0.17 at 191.20. Feeder Cattle futures rallied on falling CBOT futures.

Despite recent strength in cash hog and pork values, Lean Hog futures are trading more cautiously.  The June LH contract is almost $3/cwt below the spring high set on May 2. Today the Pork Cutout was up 70 to 89.87/cwt.

May Lean Hog futures and options expire next Tuesday, as do the May CBOT futures contracts.

Treasury yields increased sharply today with the 10-year note hitting a 6-week high amid limited signs the U.S. economy may be improving.  The 30-year bond yield closed at 3.09 pct, after reaching 3.13 pct, the highest since April 1, 2013.

Corn May -7 688; Jly -12.5 636 (625-648);
      Sep -11.5 554.5; Dec -12 529.5 (523-540)
Bean May -3 1488; Jly -10 1399 (1390-1419);
       Sep -10 1254; Nov -13.5 1205.5 (1197-1224)
  Meal Jly -6 407; Oct -5 340
   Oil +1 4923 (4860-4951)
Wheat May -19 697; Jly -19 704 (702-724); Dec -18 730
    KC -20.5 759; MGE -17 809
Oats -4 378
Rice -9 1525

LC Jun -10 12045; Oct +17 12392; Dec +37 12567
FC May -37 13537; Aug +65 14662; Oct +97 15075
LH May unch 9200; Jly -32 9090; Oct -40 8060
Milk May -3 1855; Jun -30 1808

US$ +.5%
Dow +36 15118
SP +7 1634
NAS +27 3437
Tran +36 6375
VIX -.54 12.59

WTI -35 9604 (low 9337)
Brent -83 10364 (low 10156)
Gas -2.5 286
NG -7 391
HO -3 291
Eth -2 261

Gold -32 1437
Slvr -25 2366

2-yr +.02 0.24%
5-yr +.06 0.81%
10yr +.09 1.90%
30yr +.08 3.09% 

KENTUCKY FARMERS EXPECT A GOOD WHEAT CROP
  Kentucky farmers expect to harvest 37.0 million bushels of winter wheat during 2013 according to the Kentucky Field Office of USDA’s National Agricultural Statistics Service. The expected crop for 2013 would be up 27 percent from the previous year. Improved wheat prices, along with strong soybean prices for those who intend to double crop, encouraged farmers to seed 680,000 acres last fall with 560,000 acres to be harvested for grain.
  Based on crop conditions as of May 1 and assuming a normal growing season, farmers expect a yield of 66 bushels per acre, up 4 bushels from 2012. Acres for other uses totaled 120,000 acres and will be used as cover crop for tobacco or cut as silage or hay.

U.S. Winter Wheat Production Down 10 Percent from 2012
  Winter wheat production is forecast at 1.49 billion bushels, down 10 percent from 2012. Area harvested for grain is forecast at 32.7 million acres, down 6 percent from last year. As of May 1, the United States yield is forecast at 45.4 bushels per acre, down 1.8 bushels from the previous year.
  Hard Red Winter production, at 768 million bushels, is down 23 percent from a year ago. Soft Red Winter, at 501 million bushels, is up 19 percent from 2012. White Winter, at 217 million bushels, is down 2 percent from a year ago. Of the White Winter production, 11.4 million bushels are Hard White and 205 million bushels are Soft White.

FINAL BURLEY PRODUCTION ESTIMATES
  The final production estimate of Kentucky burley tobacco for 2012 was 152 million pounds, up 19 percent from the 128 million pounds produced in 2011. Average yield was 2,050 pounds per acre, up 50 pounds from the 2011 crop. Acreage harvested was 74,000 acres, up 10,000 acres from 2011. Average price per pound was estimated at $1.97 per pound, up 22 cents from the previous year.
  Burley production for the burley producing States totaled 205 million pounds, 19 percent above 2011.  Six states make up the burley producing states.  Kentucky, the leading producer of burley tobacco, produced 74 percent of all burley grown in the United States.

KENTUCKY CASH GRAIN BIDS – Click Here

The report forecasts a corn yield of 158 bushels per acre, implying a record crop of 14.14 billion bushels, up 3.36 billion bushels from 2012 when much of the nation was overtaken by severe drought. The current record corn crop was produced in 2009 at 13.09 billion bushels.

“We are currently experiencing the latest planting season in nearly three decades across the Corn Belt due to extensive snow, rain and cool weather,” said AFBF economist Todd Davis. “The May report reflects concerns due to heavy soil moisture. As of May 5, 12 percent of the U.S. corn crop was planted—only 8 percent in Iowa, 7 percent in Illinois and 8 percent in Indiana.”

The report projects that if this large crop is realized, corn stocks could increase to slightly more than 2 billion bushels, reducing forecast farm-level price to less than $5 per bushel. This is down from $6.90 per bushel for the 2012-13 marketing year.

Davis said export predictions are down from the February outlook conference and use projections may be overly generous.

“The U.S. will still have to compete in the export market this fall with Brazil, which will be producing its second corn crop of the year,” explained Davis. “USDA use projections might be optimistic moving forward. They are predicting a 925 million bushel increase in feed use and a 550 million bushel increase in exports from 2012-13.”

Like corn, the May WASDE report also forecasts a record year for the soybean crop, projecting 3.39 billion bushels, up 375 million bushels from 2012. Soybean stocks are expected to increase to 265 million bushels, up 140 million from 2012-13 marketing year, with the stocks-to-use ratio at 8.1 percent. The farm price for the crop is also down from the year before, from $14.30 per bushel in 2012-13 to $10.50 per bushel.

The U.S. soybean crop will also have to compete with the South American crop that will be harvested six months into the marketing year. Due to the counter-seasonal production cycle, the marketing window for U.S. soy exports can be fairly short.

Davis said ultimately the weather will be the deciding factor of the report’s predictions.

“All of this is still in the hands of Mother Nature. She will dictate the weather to allow for the amount of corn and soybeans that will be planted and the growing season weather,” Davis said. “The May WASDE is a good starting point for the projections but there is a long way to go before the uncertainty of 2013 production and stocks become resolved.”

Source: Courtesy of American Farm Bureau Federation

“Kentucky is the leading beef cattle state east of the Mississippi River,” Commissioner Comer said. “Nearly 40,000 Kentucky farmers raise beef cattle. Beef also is an important source of protein, vitamins, and minerals. As a beef producer myself, I appreciate the significance of beef in our everyday lives.”

Gov. Steve Beshear proclaimed May Beef Month in a ceremony in April in Frankfort. He was joined by Warren Beeler, the Kentucky Department of Agriculture’s director of agriculture policy.

Kentucky had more than 1 million head of beef cows as of Jan. 1, according to the Kentucky office of the National Agricultural Statistics Service. Kentucky producers took in nearly $669 million in farm cash receipts from the sale of cattle in 2012, the agricultural statistics service reported.

A 2007 University of Kentucky study found that the beef industry had a total direct, indirect, and induced economic impact of more than $1.8 billion.

Commissioner Comer is founder and owner of James Comer Jr. Farms, a 950-acre beef cattle, timber and hay farming operation in his native Monroe County. He also co-owns Comer Land & Cattle Co., a family farming operation, with his father and brother.

The Kentucky Department of Agriculture helps producers find new markets for their cattle, conducts beef cattle shows, tracks market prices, and protects Kentucky’s herds from disease. To find out more about the Department’s services, go to www.kyagr.com.

Source: Provided by Kentucky Department of Agriculture

The Kentucky Cattlemen’s Association serves as the voice of Kentucky’s beef farm families, provides information and education, and works to enhance producer profitability. For more information about the KCA, go to www.kycattle.org.

The HIT, which was passed as part of the Patient Protection and Affordable Care Act, will be levied on a health insurance company’s net premiums. But, said Norton, in the end it will be employees who ultimately pay the price.

“Because of escalating health insurance premiums, we’ve had to significantly change the cost structure from covering about 90 percent of the insurance cost to approximately 50 percent through a high deductible plan,” said Norton. “Unfortunately, the people who are really hurt by this change are the employees. They now have to contribute a larger portion of the expense when they seek medical attention.”

Most farmers and other small businesses do not self-insure because they do not have a large enough pool of employees, said Norton. Instead, small employers purchase health insurance on the fully insured market. Because the smallest employers almost never self-insure, they will end up bearing the brunt of the HIT.

According to the Kaiser Family Foundation’s 2012 Survey of Employer Health Benefits, only 15 percent of the smallest employers self-insure. Further, health insurance costs for small businesses have increased 103 percent since 2000. According to the Joint Committee on Taxation, the HIT will further increase family premiums by $400 or 2.5 percent in the year 2016, making it even harder for farmers to purchase coverage for themselves, their families and their employees.

“Being able to offer health insurance is important to us as we strive to offer benefits that attract high quality workers and to keep them healthy and productive once they are on the payroll,” continued Norton. But, he said, “Escalating health insurance costs not only impact farm employers, but also those who purchase health insurance coverage for themselves and their families.”

H.R. 763, introduced by Reps. Charles Boustany (R-La.) and Jim Matheson (D-Utah), would repeal the annual fee on health insurance providers, preventing premium increases for individuals and small businesses in the fully insured health insurance marketplace.

Source: Provided by American Farm Bureau Federation

Cattle futures closed lower for the fourth day in a row. A few cattle traded at $126/cwt, down $2 from last week. However, boxed beef surged higher to a new record high. Choice UP 3.48 at 204.67; Select UP 0.37 at 190.63 Feeder Cattle futures lost more ground than Live Cattle even though Corn futures dropped over one percent. The May FC contract set a new contract low and is only about $2.50 over key support on the weekly continuation chart.

Lean Hog futures closed higher as cash hog prices rose again today. May/June/July hog futures are all near $92 and the LH Cash Index is about $90.

Outside markets were supportive to commodity futures today as the US dollar weakened and energy, equities and gold strengthened.

Corn Jly -7 633; Sep -8 554; Dec -7 532
Bean May +15.5 1479; Jly +8.5 1391; Sep -1.5 1257; Nov unch 1214
  Meal May +9 425; Jly +4 408; Oct +2 344
  Oil -32 4882
Wheat Jly -3 706; Dec -3 733
  KC +2 760; MGE +6.5 816
Oats +1 378
Rice -16 1523

LC Jun -62 12020; Oct -115 12312; Dec -97 12472
FC May -127 13560; Aug -122 14532; Oct -90 14875
LH May +52 9197; Jly +52 9190; Oct +35 8150
Milk May +8 1864; Jun -16 1836

US$ -.4%
Dow +49 15105
SP +7 1633
NAS +17 3413
Tran +14 6411
  VIX -.17 12.66

WTI +99 9661
Brent -10 10430
Gas +2.5 286
NG +5 397
HO -1 292
Eth +2 258

Gold +24 1473
Slvr +12 2392

2-yr unch 0.22%
5-yr unch 0.74%
10yr -.01 1.77%
30yr unch 2.99% 

FSA Announces Prevented Planting Deadlines
    May 8, 2013— With spring planting underway, the Farm Service Agency is reminding producers to timely report any prevented or failed acreage to their local office.   Prevented planting acreage, or acreage that could not be planted because of wet field conditions or other natural disaster, should be reported to FSA within 15 days of the final planting date of the crop. This includes crops covered by crop insurance or the Non-insured Assistance Program (NAP) and crops without insurance coverage. Producers should contact their local FSA office or crop insurance agent to verify final planting dates for all crops since they vary among counties and crop types.

FSA Announces CRP Continuous Signup
   May 8, 2013— Beginning May 13, 2013, the USDA-Farm Service Agency will be accepting new offers and approving new contracts under CRP’s Continuous, CREP, FWP, and SAFE signups.   The following practices are available under continuous signup:  CP-8A Grass Waterways Non-easement; CP-9 Shallow Water Areas for Wildlife; CP-21 Filter Strips, CP-22 Riparian Buffers, CP-29 Marginal Pastureland and Wildlife Habitat Buffer, CP-23 Wetland Restoration; CP-33 Habitat Buffers for Upland Birds; and CP-38 State Acres for Wildlife, and CP-42 Pollinator Habitat.

   Landowners enrolled in the CRP program receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible farmland. Land that is not currently enrolled in CRP can be offered during sign-up if all eligibility requirements are met.   Expiring CRP continuous contracts can be re-enrolled with an enrollment date of October 1, 2013.  The authority for this signup will end September 30, 2013.

   For more information about the CRP Continuous Signup visit us online at www.fsa.usda.gov or contact your local FSA office.

KENTUCKY CASH GRAIN BIDS – Click Here

“I’m pleased to announce that farmers and ranchers can expect to begin receiving their payments beginning today, May 8,” said Garcia. “We appreciate the producers’ patience during the delay.  We’re working diligently to get these payments out as quickly as possible.”

On March 4, 2013, FSA began a temporary suspension of FSA program payments in order to assess the impact of sequestration and determine the least-disruptive process possible for carrying out required cuts. The Department will use the Secretary’s limited authority to transfer funds to avoid reducing these program payments.

Producers should be advised that program sign-up periods currently underway have the following enrollment deadlines: 2013 Average Crop Revenue Election (ACRE) Program – June 3^rd; 2011 SURE – June 7; and the 2013 Direct and Counter-Cyclical Program – August 2^nd. Producers should contact their local Farm Service Agency office as soon as possible for appointments to enroll in these programs before the deadlines.

USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act.  USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.

Source: Courtesy of USDA

Prevented planting acreage, or acreage that could not be planted because of wet field conditions

or other natural disaster, should be reported to FSA within 15 days of the final planting date of

the crop. This includes crops covered by crop insurance or the Non-insured Assistance Program

(NAP) and crops without insurance coverage. Producers should contact their local FSA office or

crop insurance agent to verify final planting dates for all crops since they vary among counties

and crop types.

For crop losses on crops covered by the Non-insured Assistance Program (NAP), producers must

contact their local FSA office within 15 days of the occurrence of the disaster or when losses

become apparent to file a Notice of Loss. Producers with crop insurance should contact their

local agent when losses occur and before destroying the crop.

To report prevented or failed acreage, producers must complete Form CCC-576, Notice of Loss

for interested crops. Reporting prevented or failed acreage to FSA will ensure compliance with

current farm programs, and possible eligibility for future disaster programs.

If a producer misses the reporting deadline for prevented planting, they may still report

prevented planting acreage as long as the disaster condition may be verified by a field visit

before it is abandoned or destroyed.

Contact your local FSA Service Center for additional information.

The following practices are available under continuous signup:

CP-8A Grass Waterways Non-easement; CP-9 Shallow Water Areas for Wildlife; CP-21 Filter Strips, CP-22 Riparian Buffers, CP-29 Marginal Pastureland and Wildlife Habitat Buffer, CP-23 Wetland Restoration; CP-33 Habitat Buffers for Upland Birds; and CP-38 State Acres for Wildlife, and CP-42 Pollinator Habitat.

Landowners enrolled in the CRP program receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible farmland. Land that is not currently enrolled in CRP can be offered during sign-up if all eligibility requirements are met. Expiring CRP continuous contracts can be re-enrolled with an enrollment date of October 1, 2013.

The authority for this signup will end September 30, 2013.

For more information about the CRP Continuous Signup visit us online at www.fsa.usda.gov or contact your local FSA office.

Cattle futures continue to weaken on apparent pessimism about cash cattle and beef prices following recent record highs in the Choice Cutout value.

Hog futures are up on yesterday’s very strong cash hog and pork markets.

Corn Jly -6 634; Dec -6 533
Bean Jly +13 1395; Nov +5 1219
Meal Jly +5 408; Oct +2 344
  Oil +21 4935
Wheat Jly -6 703; Dec -8 728
   KC -6 752; MGE -2 807
Oats +4 381
Rice -9 1530

LC Jun -42 12040; Oct -92 12335
FC May -117 13570; Aug -137 14517
LH May +50 9195; Oct +32 8147
Milk May +7 1863; Jun -17 1835

US$ -.6%
Dow +.1%
SP +.2%
NAS +.4%
Tran -.1%
  VIX -.3% 12.79

WTI +.5%
Brent -.4%
Gas +.3%
NG +1.1%
HO -.6%
Eth +.8%

Gold +1.1%
Slvr -.3%

5-yr -.01 0.74%
10yr -.02 1.76%
30yr -.01 2.99%

KENTUCKY CASH GRAIN BIDS – Click Here

Although cash grain bids are basis the JULY contract, the MAY contracts trade through noon next Tuesday. It will be interesting to watch how those wind down – will somebody get caught short? The May/July Soybean spread widened 6 cents today to 81 cents.

Live Cattle futures closed lower for the third straight day even though boxed beef values recovered to near the record high — Choice UP 0.93 at 201.19; Select UP 0.65 at 190.26. Traders may be wary of demand slipping at these high prices. However, June LC futures already are pricing in an $8/cwt drop in cash steers.

Lean Hog futures closed higher on a jump in cash hog prices and the Pork Cutout — up 91 cents to $87.92/cwt.

Corn Jly +3.5 640; Sep +2 561.5; Dec +1 539
Bean Jly +13 1382; Sep +9 1258; Nov +7 1214.5
  Meal Jly +2 403; Oct +1.5 342
  Oil +38 4914
Wheat Jly +6 709 (698-711); Dec +7 736
   KC +1 758; MGE +4 810
Oats -2 377
Rice -11 1540

LC Jun -47 12082; Oct -25 12427; Dec -25 12570
FC May -152 13687; Aug -90 14655; oct -110 14965
LH May +40 9145; Jly +12 9137; Oct +30 8115
Milk May -12 1856; Jun -34 1852

US$ steady
Dow +87 15056
SP +8 1626
NAS +4 3397
Tran +99 6397
   VIX +.17 12.83

WTI -68 9548
Brent -138 10408
Gas -4.5 282
NG -9 392
HO steady 292
Eth +4 256

Gold -16 1452
Slvr -3.5 2392

2-yr +.01 0.22%
5-yr +.01 0.75%
10yr +.02 1.78%
30yr +.02 3.00%  

This chart from Daily Livestock Report shows how significant the increase in corn stocks could be for the 2013/14 marketing year.   http://www.dailylivestockreport.com/documents/dlr%2005-07-13.pdf

Blue Grass Stockyards Cattle Report
for 5/7/2013
Receipts:      1,437  
Last Tuesday:  1,720  
Year Ago:      1,444
   Compared to Monday, steer calves sold steady with good demand, 600-700 lbs firm with good demand on a good quality offering.   Heifer calves sold mostly steady to 3.00 higher on 400-500 lbs with Good demand a good quality offering.  Yearling steers no comparison with yesterday, however compared to last week sold 1.00 to 4.00 higher with most advance on fancy 900 lbs steers.  Yearling heifers compared to last week sold 1.00 to 2.00 higher with good demand.  Slaughter cows and slaughter bulls sold steady with moderate to good demand.
   Total supply included 07% slaughter cows, 02% slaughter bulls, less than 01% replacements and 90% feeders.  Feeder supply 55% steers, 07% bulls, 38% heifers with 72% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN BIDS – Click Here

These recommendations have been submitted to leadership of the Senate and House Agriculture committees for their consideration for debate on the new farm bill. In a letter to Senate Agriculture Committee leaders, the organizations said the position provides “an effective farm and natural resource safety net.”

“Farm Bureau is convinced this agreement will move the farm bill forward,” said AFBF President Bob Stallman. “This is a balanced agreement that provides fairness and a measure of certainty to farmers regarding the availability of risk management tools while at the same time helping to conserve natural resources. It’s a win-win situation that was reached by a group of organizations that came together under a banner of common-sense and collaboration.”

In the spirit of compromise and in the interest of completing a farm bill this year, each of the groups has committed to not support amendments beyond this compromise that might weaken the crop insurance program or amendments that might not link conservation compliance with crop insurance premium assistance, according to the letter.

“It is no secret that much of agriculture fought the compliance amendment during last year’s Senate debate on the farm bill,” Stallman explained. “But our desire to avoid a time-consuming and contentious debate with our long-standing partners on workable environmental stewardship programs helped build a consensus around rational provisions that protect farmers while furthering the conservation of natural resources.”

Stallman, a Texas rice farmer and cattle rancher, said it is important to note this agreement does not propose to change current conservation compliance requirements. The recommendations offered apply only to the linkage of conservation compliance and crop insurance premium assistance or availability.

Under the recommendations, crop insurance would continue to be available to help farmers manage their risks and meet the requirements of their lenders. But under certain circumstances, if a farmer is found to be out of compliance with conservation mandates, his or her eligibility for premium assistance would be eliminated until compliance conditions are satisfied.

“This approach to re-linking crop insurance and conservation compliance should provide USDA sufficient flexibility to work with farmers to ensure compliance in a balanced, fair manner,” Stallman said.

Source: Provided by American Farm Bureau Federation

Weak energy and metal futures are negative outside market influences. The US dollar is steady.

Cattle futures are lower in follow-through weakness to Monday’s sharp market drop.

Lean Hog futures are little changed and have traded narrow ranges. Traders need to see where the beef and pork wholesale markets go.

Treasury yields keep edging higher as the Dow Jones and SP500 hit new record highs.

Corn Jly +1 638; Sep -3 556.5; Dec -6 532.5
Bean Jly +8 1377; Sep +3 1253; Nov unch 1207
   Meal Jly +3 404; Oct unch 340
   Oil +4 4880
Wheat Jly -3 699; Dec -3 725
   KC -4 753; MGE -3 803
Oats -3 376
Rice -5 1546

LC Jun -7 12122; Oct -40 12412; Dec -45 12550
FC May -122 13717; Aug -72 14672; Oct -95 14980
LH May -10 9095; Jly -12 9112; Oct -5 8080
Milk May +9 1877; Jun +10 1896

US$ steady
Dow +.3%
SP +.2%
NAS steady
Tran +1.1%
   VIX +.5% 12.73

WTI -.6%
Brent -.3%
Gas -.8%
NG -1.7%
HO +.6%
Eth +1%

Gold -1.5%
Slvr -1.1%

5-yr +.01 0.75%
10yr +.02 1.78%
30yr +.02 2.99%

Chart of Corn Planting Progress available at CME Group
      http://www.dailylivestockreport.com/documents/dlr%2005-07-13.pdf

KENTUCKY CASH GRAIN BIDS – Click Here

World burley production fell by around 25 percent last year, creating low stock levels. Companies are now clamoring for the high quality burley common in Kentucky and are expected to pay more for it, according to industry officials.

“Anticipated higher prices and production will likely enable the value of Kentucky’s tobacco crop to exceed $400 million, surpassing last year’s $408 million, which was the highest value since the buyout,” said University of Kentucky tobacco economist Dr. Will Snell.

But he and others note that issues beyond weather, plant disease and insects could stifle increased production; most notably the availability of labor and barn space. Another issue has emerged with the USDA’s Risk Management Agency’s unexpected decision to mandate that tobacco will not be insured on any acreage on which tobacco was planted in the two previous years. That announcement, which didn’t come until December, has some growers – especially some large-scale producers –  scrambling to find land.

“It’s caused a lot of problems,” said Spencer County grower Scott Travis, a KFB Director who is chairman of the organization’s Tobacco Advisory Committee. “We have a lot of large growers now and this puts some of them in a tough spot. They either have to find another place to grow or not get insurance – that messes them up with lenders because they require insurance. This caught everyone off guard.”

Besides a supply situation that’s in their favor, growers also could benefit from expanded sales outlets. Last year, a good number of growers became disenchanted with the contracting delivery stations and turned to alternatives such as uncontracted delivery stations, a couple of old-style auction houses or some independent “pop-up” buyers. This competition sent the average price soaring over $2 a pound.

The National Agricultural Statistics Service estimates a $1.97 average for burley last year; the highest price since the buyout. It has estimated 2013 planted burley acreage of 78,000 acres, a five percent hike from 2012.

Snell and others say that’s likely if growers can resolve the labor, barn space and available land issues.

“It’s a supply issue, not a demand issue,” Snell explained. “It’s certainly going to be interesting to see what happens. I think prices will be attractive, but in the long-term I’m not sure. But we are seeing some fields planted for the first time in years. There is opportunity (for a good year).  Certainly short-term optimism.”

Travis said optimism abounded at the recent American Farm Bureau Federation Tobacco Committee meeting.

“I’ve been on that committee for four years and have never been in one that was that optimistic,” he recalled. “Everyone was pretty upbeat.”

Travis acknowledged that he was among those who bypassed the contract system last year. He said he sold at auction and did well.

“There were plenty of options for growers last year and a lot of tobacco sold well. People were doing better outside of the (contract) system.”

A lucrative sales outlet emerged last fall when the International Tobacco Trading Group (ITTG), a business involving former Burley Cooperative General Manager Brian Furnish of Harrison County, opened buying stations in Cynthiana and Lebanon. After word spread that ITTG was paying well above contract prices, a lot of contracted leaf found a home there.

ITTG has added a third station in Warsaw, is contracting with growers and plans to pay top dollar again, Furnish said.

Worldwide demand for flavored burley is great and buyers like Philip Morris International and Japan Tobacco Inc. are eager, said Furnish.

“This is the first time since the buyout that a tobacco farmer can really feel that he has options,” he said. “When the buyout started it was felt that if you didn’t have a contract you could be left out. But now there’s good competition for the big buyers. I think prices will be higher.”

Furnish, however, is not optimistic about a significant hike in production.

“We have an infrastructure problem in this state,” he said. “A lot of the ones who took the buyout have the land and barn space, but aren’t making it available (for tobacco). There’s a lack of labor, good land and barns. Because of the high prices on corn and soybeans, it’s difficult to rent land. With all these factors in play, I don’t see a big upswing.”

Snell concurs with the infrastructure problem. That, plus the volatile world market, have him reluctant to make predictions about the long-term situation.

“To coin a phrase typically used in tobacco, ‘we’re in transition’,” he said.

U.S. crop progress stats are printed below the financial quotes below.

While corn planting at 12 pct is slower than traders expected, today’s bearish trade is not likely to reverse as long as the forecasts stay drier. The funds had been moving toward a short position before they started buying on the wet forecasts. The 5-day, 60-cent rally in July Corn is more than half gone; July chart support is $6.10.

Due to tighter supply/demand conditions, the soy complex had smaller losses. And new-crop gained on old-crop soybeans since improved corn planting conditions should keep acreage from switching to soybeans.

Wheat futures were pressured by corn’s sharp declines and last week’s crop tour yield estimate for KS wheat. Tonight’s drop in the condition of the Winter Wheat crop may help wheat relative to corn futures. Friday’s bearish chart action was confirmed today with a “gap down”; July has support at $6.88, then $6.65.

Traders’ attention will be turning to Friday’s USDA supply-demand update (WASDE).

Cattle futures started the morning higher on last Friday’s strong boxed beef market (set new RECORD HIGH), but turned down mid-morning probably as traders heard wholesale beef values were declining. The closing quotes are Choice DN 1.42 at 200.26; Select DN 0.52 at 189.61. News reports that Tyson has seen consumers switching to chicken didn’t help. If the warmer, drier forecasts turn out accurate, grilling demand for steak and chops might pick up. Feeder cattle had limited losses given the sharp drop in CBOT futures.

Note that June Live Cattle futures at $121 is about $8/cwt discount to last week’s cash trade. The spread between cash and futures should begin to narrow into late May.

Lean Hog futures succumbed to the downdraft in cattle futures and by weaker pork values today. Deferred LH contracts were hit the hardest due to declining CBOT futures.

Corn Jly -25 636.5; Sep -19.5 560; Dec -15 538
Bean Jly -18 1369; Sep -16 1250; Nov -14 1207
   Meal Jly -5 401; Oct -5 340.5
  Oil -51 4876
Wheat Jly -18 703; Dec -16.5 729
  KC -21 757; MGE -13 806
Oats -9 379
Rice +15 1551

LC Jun -52 12130; Oct -77 12452; Dec -95 12595
FC May -37 13840; Aug -5 14745; Oct -50 15075
LH May -35 9105; Jly -105 9125; Oct -122 8085
Milk May -2 1868; Jun -6 1885

US$ +.25%
Dow -5 14969
SP +3 1617
NAS +14 3393
Tran +79 6298
   VIX -.19 12.66

WTI +21 9582
Brent +119 10538
Gas +3 286
NG -5 399
HO +3 292
Eth -4 252

Gold +5 1469
Slvr -3 2398

2-yr unch 0.21%
5-yr +.01 0.74%
10yr +.02 1.76%
30yr +.02 2.98%

 CORN Planted in 18 major States: 
  12 pct compared to 69 pct last year and 47 pct for 2008-2012 average.

CORN Emergence: 
 3 pct compared to 29 pct last year and 15 pct on average.

Soybeans Planted in 18 major States:
  2 pct vs 22 pct last year and 12 pct on average.  

Winter Wheat crop conditions deteriorated from last week.
  Good/Excellent: 32 pct, down 1 point.
  Poor/Very Poor: 39 pct, up 4 points.  

Spring Wheat Planted in 6 States:
  23 pct, down from 82 pct a year ago and the 5-yr average of 50 pct.

48-state Pasture Conditions:
  Good/Excellent: 32 pct compared to 54 pct a year ago.
  Poor/Very Poor: 36 pct compared to 17 pct a year ago.

Blue Grass Stockyards
   Cattle Auction Report for 05/06/2013
Receipts:  571  
Last Monday:  1,125  
Year Ago:  815
    Compared to last week, steer calves sold mostly steady with good demand.  Heifer calves sold mostly steady with good demand, except 400-500 lbs 3.00 lower with moderate demand.  Average to good quality calves today.  Yearling steers and yearling heifers no test.  Slaughter cows sold 4.00 higher with good demand.  Slaughter bulls sold 2.00 higher with good demand.  Heavy rain over the weekend slowed cattle movement today.
    Total supply included 07% slaughter cows, 01% slaughter bulls, less than 01% replacements and 91% feeders.  Feeder supply 28% steers, 27% bulls, 45% heifers with 33% of feeders weighing over 600 lbs. 

KENTUCKY CASH GRAIN BIDS – Click Here

Kelly Jackson, Christian County horticulture extension agent, plants a blackberry bush at the Hopkinsville community orchard.

Nate and Ellen Ragsdale, Challenge House ambassadors, were looking for a source of apples to make apple jelly. The Ragsdales use the jelly as part of their efforts to open doors and connect with other members of the Durrett Avenue neighborhood. Challenge House ambassadors are individuals who choose to live in low-income areas with the goal of sharing their faith with their neighbors and providing them with encouragement and life skills to improve themselves and their neighborhoods. There are several Challenge Houses in Hopkinsville.

“We are just trying to be examples of what we can do, if we just put our minds to it,” Nate Ragsdale said.

The neighborhood, located in Hopkinsville’s inner city, has very few places where residents can easily access fresh fruits and vegetables.

The Ragsdales contacted Kelly Jackson, horticulture agent with the University of Kentucky Cooperative Extension Service, about a place to plant apple trees, and the idea for the community orchard was born.

“I hadn’t thought about that before, because people usually talk about vegetable gardens, and unless you have a tremendous workforce, it’s hard to do a vegetable garden,” Jackson said.  “So that idea stuck with me, and I said, ‘Let’s see what we can do.’”

Prior to meeting with the Ragsdales, Jackson was contacted by John Allen with Micah Mission Center in Hopkinsville. The center, a ministry of the Madisonville District of the United Methodist Church, had grant funding to start community gardens in town and agreed to fund the orchard project.

“I’m really hoping, as this community orchard and garden develops, neighborhood people will take more of an interest and will want to do their own raised-bed vegetable garden plot,” Allen said. “I hope that community gardening as an idea will catch on, and we can be part of more community gardens in the future.”

Jackson also contacted the city, and the Hopkinsville and Christian County Landbank Authority agreed to lease the Challenge House land on Broad Street, two blocks from the Ragsdale’s home, to start a the orchard. The Ragsdales are responsible for the orchard’s maintenance.

“I think a lot of community people are going to benefit from this, and not only from the fruit, but by developing relationships in the community,” said Don Ahart, Hopkinsville mayor pro-tem and city council member. “We’re looking forward to it.”

In April, Jackson and Ragsdale planted 20 apple trees and three pear trees in the orchard along with six raised beds of strawberries and several blackberry bushes. Jackson consulted UK fruit and vegetable specialist John Strang for disease-resistant, easy-to-manage varieties.  It will be a few years before the trees produce fruit, but community residents will be able to harvest the berries next year.

Jackson hopes this is the first of many community orchards in Christian County.

“That’s a big mission for extension. We need to be finding these locations, whether it’s vegetable gardens or orchards, and making food available to the public,” Jackson said. “I saw a video from England a while back, and they were putting gardens and apple trees in every nook and cranny they could find. Their motto was if you eat, you’re in. We wanted to adopt that motto too for the orchard, and anybody in the community that needs it, it’s here for you.”

Source: Press release courtesy of UK College of Agriculture

Cattle futures are higher in response to Friday’s record high beef cutout value. Futures had dropped Friday on a profit-taking sell-off.

Lean Hog futures are trading mixed. The deferred contracts are weighed by the falling CBOT which could promote more pork production down the road.

Corn Jly -26 635; Sep -22 557; Dec -18 535
Bean jly -16 1371; Sep -13 1252; Nov -12 1209
  Meal Jly -6 401; Oct -4 341
  Oil -22 4905
 Wheat Jly -20 701; Dec -19 726
  KC -20 758; MGE -14 805
Oats -8 380
Rice +7 1543

LC Jun +42 12225; Aug +35 12232; Dec +5 12695
FC May +50 13927; Aug +90 14840; Oct +35 15160
LH May +5 9145; Jly -12 9217; Oct -50 8157
Milk May -4 1866; Jun -12 1879

 US$ +.3%
Dow unch
SP +.2%
NAS +.3%
Tran +1.3%
   VIX +.7% 12.94

WTI +.4%
Brent +1%
Gas +1%
NG -.9%
HO +.9%
Eth -1.8%

Gold +.2%
Slvr -.5%

5-yr +.01 0.73%
10yr +.01 1.75%
30yr unch 2.95%

Soybean oil futures lifted soybean futures today as crude oil surged higher; soybean’s strength also comes from continued tightness in the cash market. Soybeans traded a very wide range, starting the day at the lows and rallying until noon when a profit-taking sell-off occurred.

Wheat futures closed within a nickel of the day’s lows after a volatile trading session. The Kansas wheat tour found freeze damage but still estimated the average HRW yield at 41.1 bu/acre which is comparable to the 2012 final yield. Both Chicago and KC July wheat contracts charted “outside down days” which is technically bearish.

Next week, traders will begin to guess what the May 10th USDA Supply-Demand update will say.

Cattle futures took an unexpected turn down today despite no weakness in the boxed beef market and a surging U.S. stock market in response to a better-than-expected jobs report. This may have been end-of-week profit taking to move investments into equities. How well beef moves out of the meat case this weekend could direct the market Monday. Choice UP 1.10 at 201.68; Select DN 0.51 at 190.13.

Lean Hog futures closed mostly lower in apparent follow-through to Thursday’s late-day weakness. Given futures’ premium to the cash market, this is not surprising. However, LH futures still are near the top of the range traded the past 2.5 months. The May contract closed at its highest price since February 15 and is $6.00 above the mid-April low.

U.S. equities shot to new record highs today with the Dow surpassing 15,000 and the SP500 Index topping 1600. Treasury yields jumped higher as investors moved to “risk on” investments. Investors ignored negative news in the ISM non-manufacturing index falling to 53.1 from 54.4 a month earlier, and a 4 pct drop in factory orders as reported by the Commerce Dept.

Corn Jly -1 661; Sep -4.5 579; Dec -5.5 553.5
Bean Jly +15 1387; Sep +18 1266; Nov +17 1221
Meal Jly unch 406; Oct +5 345
Oil +78 4927
Wheat Jly -7.5 721 (716.5-735); Dec -7 745
KC Jly -13 778; MGE -6 819
Oats +2 388
Rice +10 1535

LC Jun -182 12182; Oct -170 12530; Dec -157 12690
FC May -182 13877; Aug -215 14750; Oct -170 15125
LH May +10 9140; Jly -72 9230; Oct -22 8207
Milk May +1 1870; Jun -40 1891

 US$ -.15%
Dow +142 14974
SP +17 1614
NAS +38 3379
Tran +125 6219
  VIX -.74 12.85

WTI +154 9553
Brent +132 10417
Gas +4 282
NG +2 405
HO +3 288
Eth +4 256

Gold +2 1470
Slvr +25 2408

2-yr +.02 0.22%
5-yr +.08 0.72%
10yr +.11 1.74%
30yr +.13 2.96%

Kentucky Weekly Livestock Summary for 26 through 2 May, 2013
This Week   Last Week  Last Year
     23,405      23,387     18,296

Compared to last week:  Steers and Heifers mostly 3.00-5.00 higher. Demand good for all classes.  Kentucky finally got a string of days that are reminiscent of Spring weather, which helped turn the state green for Derby week.  Many local producers have taken advantage of recent upswings in the market to cash in their yearlings.  Restocking those accounts however, has been somewhat stagnant with the roller coaster of weather and temperatures.  The first real signs of consistent warm weather and green grass has spurred a renewed interest in the calf market.  Warm weather is also a key factor in end product demand as consumers pull the grill out of hibernation and venture to the store for beef; this push in temps has aided in a push in higher prices with the Choice cutout closing over $200/cwt yesterday.  Slaughter Cows and Bulls steady to firm. 

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 45 percent and Heifers approximately 38 percent.  Steers and Heifers over 600 lbs totaled approximately 58 percent.  Replacement cattle 2 percent. 

KENTUCKY CASH GRAIN BIDS – Click Here

The 2012 drought greatly reduced Kentucky corn yields and left many producers wondering whether they have the protection they need in case of another disastrous season.

University of Kentucky College of Agriculture economist Cory Walters said producers can choose between two risk protection programs offered by the U.S. Department of Agriculture–the Direct and Counter-Cyclical Payment Program and the Average Crop Revenue Election.

ACRE was born out of the 2008 Farm Bill and is available to producers who grow corn, soybeans, wheat and many other crops.

Unlike the traditional DCP support programs that offer payments and marketing assistance loans if a price of a particular crop falls below a certain level, ACRE pays if crop revenue falls below a revenue guarantee. Revenue includes price and yield.

The revenue guarantees are based on a calculation that includes the average of U.S. cash prices from the previous two years and the average state yields for a crop in the past five years, minus the highest and lowest yielding years. As a result, revenue guarantees will change each year but by no more than 10 percent from one year to the next. Therefore, the higher the previous two years’ cash prices and the higher the state yields from the previous five years, the better chance a producer has to receive an ACRE payment.

While it was initially a five-year program, ACRE has been extended for the 2013-2014 marketing year. Producers enroll in the program by Farm Service Agency farm number, and the deadline to enroll is June 3. The DCP deadline is Aug. 3.

Walters suggested producers start filling out their paperwork for both programs but wait until closer to June 3 to decide which program may work best for their operation, as grain markets continue to fluctuate and concerns about planting delays exist due to a wet, cold spring.

“Chances of an ACRE payment are likely less than 30 percent and chances of a counter-cyclical payment are near zero,” Walters said. “As June 3 approaches, producers should closely watch the markets as grain prices should be their deciding factor.”

ACRE pays when actual state revenue falls below the state revenue guarantee. Assuming average state yields, the ACRE trigger price, or where payments start due to low prices for the 2013-2014 marketing year, is currently $4.77 a bushel for corn and $13.09 a bushel for soybeans. If state yields are higher, the trigger price will be lower.

Walters estimated that Kentucky corn producers who enrolled in ACRE for the 2012-2013 marketing year will receive a payment from the program this year as the past summer’s drought greatly reduced crop yields. He said the average payment from the program would be around $100 per acre. This is higher than the previous ACRE payment record of $95.32 for wheat in 2009. Final payment amounts will not be determined until the current marketing year ends Aug. 31.

ACRE does have payment limits, and Walters estimated those to be around $73,000 per producer.

Those who enroll in ACRE forgo any counter-cyclical program payments, forfeit 20 percent of direct payments and have loan rates reduced by 30 percent. Walters estimated that for most producers this would be less than 1 percent of their expected revenue.

Those wanting more information on the USDA risk protection programs should contact their local FSA office or visit http://www.fsa.usda.gov/FSA/webapp?area=home&subject=dccp&topic=landing.

Old-crop corn futures lead the market higher on tight cash markets and improving ethanol production economics.

Outside markets were mixed with very strong energy and metal futures despite a stronger US dollar (as the ECB lowered its key rate from 0.75 to 0.50%, a record low). A key U.S. jobs report will be released Friday morning. Yesterday the Federal Reserve OMC indicated it will continue its monetary easing program as the economy dictates.

Cattle futures closed strongly higher as boxed beef values continued to climb higher with Choice beef surpassing $200/cwt for the first time since 2003. Choice UP 1.09 at 200.58; Select UP 0.81 at 190.64. There’s a lot of pent up demand for grilling due to April’s very cool, wet weather.

Lean Hog futures closed little changed. The pork cutout slipped a little today. Even so, traders still expect pork demand to improve similar to beef as weather improves. However, May Lean Hog futures are already 5-6 cents/lb premium to the cash hog market.

Corn Jly +15 662; Sep +11 584; Dec +8.5 559
Bean Jly -1 1372; Sep -2.5 1247.5; Nov -5 1204
Meal Jly +2 406; Oct -1 340
Oil -36 4849
Wheat Jly +7.5 728.5; Dec +7 752; 
  KC Jly +8.5 791; MGE +9.5 825
Oats +6 386
Rice -2 1525

LC Jun +117 12365; Aug +77 12387; Oct +47 12700
FC May +110 14060; Aug +92 14965; Oct +50 15295
LH May +40 9130; Jly +5 9302; Oct -15 8230
Milk May +4 1869; Jun -15 1930 

US$ +.7%
Dow +131 14832
SP +15
NAS +41 3341
Tran +59 6094
  VIX -.90 13.59

WTI +304 9407
Brent +294 10289
Gas +5 277
NG -28 404
HO +7 285.5
Eth +6 252

Gold +20
Slvr +44 2378

2-yr unch 0.20%
5-yr unch 0.65%
10yr unch 1.63%
30yr unch 2.82%

Blue Grass Stockyards
Cattle Weekly Summary Report for the week ending 05/02/13
   Receipts:  2,845   Last Week:  2,973   Year Ago:  2,040

Compared to last week, steer calves sold mostly steady, except featherweight calves under 400 lbs 10.00 higher with very good demand.  Heifer calves under 500 lbs sold 5.00 to 10.00 higher with very good demand and active farmer participation, 500-600 lbs sold steady to 4.00 higher with very good demand, over 600 lbs sold steady.  Mostly good quality calves.  Yearling steers 2.00 to 3.00 higher with good demand yearling heifers steady to 3.00 higher in a light test.  Slaughter cows sold steady with good demand. Slaughter bulls sold steady with good demand.

Total supply included 09% slaughter cows, 01% slaughter bulls, 01% replacements and 89% feeders.  Feeder supply 48% steers, 14% bulls, 38% heifers with 54% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN BIDS – Click Here

KENA meetings occur every other month, and offer a social hour with cash bar and dinner where qualified speakers present topics of current interest in the areas of horse health, management, and business. While KENA welcomes every member of the Kentucky horse community, it targets specifically those who participate in breeding, reproductive services, instruction, training, board and showing.

“The KENA program fulfills the KHC mission of education and support of the horse industry by facilitating more knowledgeable horse business owners,” said Anna Zinkhon, President of the KHC Board. “In addition, the networking connects participants in the show and pleasure horse industry, so we speak with a unified voice on issues of importance.”

Sponsorships are available for the KHC, with a KENA focus. Your sponsorship will help cover some of the costs for the dinner meetings and helps the event remain affordable for everyone. Your business will be recognized for its support of the KENA program.

The next KENA meeting will be held on May 9, 2013 at the Four Points by Sheraton in Lexington Kentucky. Registration will begin at 5:30PM, and the guest speakers will be presenting on Senior Horse Care. Reservations are required for KENA meetings because of the need to plan for the number of dinners prepared. Membership in the Kentucky Horse Council will help defray costs for the dinner ($5.00 discount).

Source: Press release courtesy of Kentucky Horse Council

“The good health of the honey bee is extremely important to American agriculture. Many farmers and ranchers require honey bees and other pollinators to produce a healthy, bountiful crop. Farm Bureau supports funding for research to find real answers to the Colony Collapse Disorder, as well as practical, effective methods to remedy the situation.”

Source: Courtesy of American Farm Bureau Federation

The report, recently released by the Department of Forestry in the University of Kentucky College of Agriculture, states that direct revenue resulted in $6.4 billion with an additional $3.6 billion in indirect and induced contributions. The sector employed 51,928 people, which resulted in $1.25 billion in earned income last year.

“The good thing about the wood industry and the forestry sector overall is that it generates wealth broadly across Kentucky,” said Jeff Stringer, professor of silviculture in the UK Department of Forestry and an author of the study.

Kentucky boasts 12.4 million acres of forest, with 75 percent of that acreage being family-owned. There are more than 100,000 individuals in the state who own 10 woodland acres or more, with more than 90 percent of the timber that supplies the forestry industry coming from those woodlands.

“Those lands are distributed throughout the commonwealth, from Pike to Fulton,” Stringer said. “The industries are distributed across the state as well. So woodland owners in every part of the state have the ability to participate in this economic engine.”

The forestry sector covers a wide range of industries that include logging, paper production and conversion, and a diversity of wood and finished or secondary product businesses, such as manufacturers of furniture, trim, flooring and barrels. These industries include 708 individual facilities located in 109 Kentucky counties.

Logging is the smallest component in the sector, directly employing 2,276, not including owner/operators. In 2012, it had a direct economic impact of $164 million. Though small, the logging industry plays a pivotal role in supplying timber resources for the entire sector.

Solid wood manufacturing, which includes lumber mills and component manufacturers, contributed $3.68 billion to the economy. Paper manufacturing had direct revenues of $3.7 billion with $900 million from pulp and paper production and $2.8 billion from paper converts that include packaging and industrial and writing paper, but does not include printers. Total impact attributed to paper was $5.4 billion in 2012, according to the report.

“Paper consumption in the U.S. is predicted to continue to decrease at about a 3 percent clip over the next five to 10 years. That’s paper overall, and includes packaging, cardboard, writing paper and newsprint,” Stringer said. “Our factories in Kentucky don’t produce newsprint. A mill in Wickliffe produces heavier cover stock paper and one in Hawesville makes copier paper. As long as greeting cards are being made and magazines are printed, our industries in Kentucky are OK. That’s why we predict pulpwood production to be fairly stable.”

Annual pulpwood production in the state remained at nearly 993,000 tons.

Though the economic contributions of the state’s forestry sector are significant, the country’s soft economy and slow housing starts in 2012 caused a contraction of 3.7 percent compared to 2011. The 2012 output of 593 million board feet is significantly below the Kentucky high of 1.1 billion board feet produced in 1999. That translates to a loss of 942 jobs and a drop of $256 million in revenue. Manufacturers of paper products were the hardest hit, dropping 4.7 percent.

Current data on forest inventories indicate growth still exceeds removals in Kentucky forests, but timber quality shows a different picture. There has been a 38 percent decrease in the percent of high quality trees in Kentucky, from 20.7 percent of the timber volume in 2004 to 12.9 percent in 2011.

“Some of the quality has been mined out, and some of the low quality has not,” Stringer said. “That’s not necessarily a bad thing, because you want to wait to grow a nice, high-quality log. But the way you get more higher quality trees in woodlands is to practice good management, so management of the woods by family forest owners is very, very important for the long-term health and stability of the forestry sector and the economic impact that comes from it.”

The study’s authors, Stringer, Billy Thomas and Bobby Ammerman all from UK’s Forestry Department, and Alison Davis from UK’s Department of Agricultural Economics, report that some timber products and species showed price increases or stability in 2012. Railroad tie logs had a delivered price of $293-$332 per thousand board feet, with hickory commanding the highest prices. Stave logs, particularly those made of white oak, rose to their highest price in several years, topping out at $875 per thousand board feet in the third quarter of 2012.

The U.S. Forest Service predicts that there will be continuing demand for hardwood, but also potential shortages in the future, not only nationally, but globally. While most of the forest products produced in Kentucky are consumed domestically, exports do play an important part in some industries.

“Kentucky has the ability, because our forests are very diverse, to produce a wide range of quality hardwood species. That positions us well,” Stringer said. “What our industry has to be able to do is to maintain their competitiveness in a global market. They have to be able to grow to encompass exporting and position themselves to participate in global markets, because that’s where it’s all headed. I think that’s the biggest challenge facing our forestry sector. But I legitimately think we can meet that challenge.”

UK’s Department of Forestry and Cooperative Extension Service conduct workshops and provide information on proper woodlands management. Instructional materials, information on upcoming workshops and field days, as well as a complete copy of the 2012-2013 Kentucky Forestry Economic Impact Report are available at http://www.ca.uky.edu/forestryextension/.