Tennessee Market Highlights...August rop Production report. Even though August corn production projections were lowered from the July report, USDA ... Oct 17.05 16.94 Nov 16.98 17.04

August 11, 2017 Tennessee Market Highlights Number: 32

FED CATTLE: Fed cattle traded $2 lower compared to last week on a live basis. Pric-es on a live basis were primarily $114 to $116 while prices on a dressed basis were mainly $183 to $185.

The 5-area weighted average prices thru Thursday were $115.17 live, down $2.13 from last week and $183.89 dressed, down $3.46 from a week ago. A year ago prices were $116.91 live and $186.86 dressed.

Seasonal summer softness edged its way back into the finished cattle market as packers were able to drive prices a little lower this week. The live cattle market will remain under pressure through the sum-mer. However, it is difficult to predict the bottom as live cattle futures remain at a huge discount compared to the cash mar-ket. The August live cattle contract lost more than $6 from last Friday while the cash market only traded $2 lower. The price movements this week widened the basis further while deferred contracts are calling for lower prices. A strong positive basis and lower prices on the deferred con-tracts will continue to pull cattle out of the feedlot at a rapid pace unless cattle feeders revert back to marketing tactics practiced in the fall of 2015.

BEEF CUTOUT: At midday Friday, the Choice cutout was $199.77 down $0.86 from Thursday and down $4.34 from last Friday. The Select cutout was $196.35 up $0.16 from Thursday and down $1.86 from last Friday. The Choice Select spread was $3.42 compared to $5.90 a week ago.

Given the midday Choice cutout price, it appears the Choice cutout price will fall below the $200 threshold for the first time since February 24th. Beef prices had a strong run through the spring and early summer with prices peaking over $252 in the middle of June, but the dog days of summer are taking their toll. Last year it was August 26th before the Choice cutout dropped below $200, but today’s price is

only $1.81 lower than it was the same day one year ago. The concern comes in when considering the Choice cutout dropped be-low $180 during the back half of October 2016. Could that be in store for the fall of 2017? Beef prices could continue to spiral downward over the next couple of months before holiday purchasing begins. Such a downward movement would put pressure on finished cattle prices as well as feeder cattle prices. If beef production remains elevated and exports falter the next few months then downside risk will remain and prices could fall below year ago levels later in the year. Participants in the cattle mar-kets should keep an eye on this situation.

OUTLOOK: Feeder cattle futures were pummeled most of the week as prices dropped faster than a lead weight in a wa-ter trough. Most of the decline in feeder cattle was likely in response to live cattle futures being in a free fall. It is difficult to say with certainty why the market took such a hit this week other than everyone in the marketplace knew there was still time for finished cattle prices to soften which did occur this week. However, Friday trade showed some glimmers of hope as live cattle and feeder cattle traded to the up-side at one point. Some of the upside in Friday’s feeder cattle futures trade was likely a result of the USDAs release of the August Crop Production report. Even though August corn production projections were lowered from the July report, USDA estimates U.S. corn production to exceed projections by other industry experts. This subsequently resulted in corn prices soften-ing. Similarly, soybean prices took a hit due to expectations of increased production. This information does not bode well for grain farmers at this time, but it does pre-sent opportunities for the livestock indus-tries. Cattle feeders rely heavily on grains, oilseeds, and by products of these crops. The recent price decline may be offering an

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

Slaughter Cows

Steady to $1 higher

Slaughter Bulls

$2 higher

Feeder Steers

Steady to $4 lower

Feeder Heifers

Unevenly steady

Feeder Cattle Index

Wednesday’s index:

Fed Cattle

The 5-area live price of $115.17 is down $2.13. The dressed price is down $3.46 at $183.89.

Corn

September closed at $3.60 a bushel, down 6 cents since last Friday.

Soybeans

September closed at $9.38 a bushel, down 14 cents since last Friday.

Wheat

September closed at $4.39 a bushel, down 15 cents since last Friday.

Cotton

December closed at 68.25 cents per lb, down 2.37 cents since last Friday.

2

opportunity to price feed at a relatively low price which should result in a fairly low cost of gain. With a lower cost of gain on the table, there remains an opportunity to add weight to calves. The lower cost of gain in feedlots could result in cattle feeders being more aggressive while purchasing cattle, but the likelihood of this is small given they have been aggressive throughout 2017. Feedlot placements for the first six months of the year are up 10.2 percent compared to a year earlier. Sea-sonally speaking, placements will begin to escalate with Octo-ber placements potentially being 40 to 45 percent higher than June placements. Most of the fall increase will come from spring born calves weighing less than 700 pounds. This does not mean there is more competition for these animals. It simply means there are more of these animals out there than produc-ers want to background which also means there is an oppor-tunity.

ASK ANDREW, TN THINK TANK: In recent weeks there have been several questions concerning the pricing of feeder cattle in the October and November time period. For producers who anticipate marketing yearling type feeder cattle this fall, it may be advantageous to forward contract those cattle in the near term rather than waiting until October or November to physi-cally market the cattle. Thus, forward contracting would result in the cattle being marketed in the near term and the cattle not actually leaving the farm until an agreed upon date in October or November. Considering November feeder cattle futures, the November contract is trading at the bottom of a long estab-lished range. Thus, it may be advantageous to see if the No-vember contract will bounce back above the $145 price mark before attempting to forward contract the animals. It does not appear using the futures market as a hedge right now would be of much benefit.

Please send questions and comments to [email protected] or send a letter to Andrew P. Griffith, University of Tennessee, 314B Morgan Hall, 2621 Morgan Circle, Knoxville, TN 37996.

FRIDAY’S FUTURES MARKET CLOSING PRICES: Friday’s closing prices were as follows: Live/fed cattle –August $109.73 +0.88; October $107.40 +0.80; December $109.33 +0.73; Feeder cattle

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Livestock Comments by Dr. Andrew Griffith

–August $141.78 +0.60; September $142.23 +0.93; October $141.60 +1.13; November $141.50 +1.38; September corn closed at $3.61 up $0.04 from Thursday.

Thursday August 10, 2017

Month Class III Close Class IV Close

Aug 16.39 16.67

Sep 16.86 16.80

Oct 17.05 16.94

Nov 16.98 17.04

Dec 16.80 16.40

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 118,000 428,250

Last week (4 days) 116,250 438,000

Year ago (4 days) 112,250 435,250

This week as percentage of

Week ago (%) 102% 98%

Year ago (%) 105% 98%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 200.63 196.19

Last Week 205.16 197.78

Year ago 200.87 192.05

Change from week ago -4.53 -1.59

Change from year ago -0.24 +4.14

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Crop Comments by Dr. Aaron Smith

Overview Corn, cotton, soybeans, and wheat were down for the week. The big news this week was the release of the USDA’s August WASDE report. Full details of the report for corn, soybeans, cotton, and wheat can be found online at: https://ag.tennessee.edu/arec/Pages/MonthlyCropComments.aspx.

Overall the report had a bearish market reaction for all four commodities with 2017/18 contracts down across the board: corn futures were down 12-15 cents; soybeans down 24-33 cents; wheat down 15-19 cents; and cotton down 2.24-3 cents. The primary driver was higher domestic yields than anticipated. National yields (the first for this crop year estimated by survey data) were: 169.5 bu/acre for corn; 49.4 bu/acre for soybeans; 45.6 bu/acre for wheat; and 892 lbs/acre for cotton. For corn, the National average yield was 2-4 bu/acre higher than many were projecting. Corn yields in Tennessee were projected at 166 bu/acre up 15 bu/acre from 2016. Domestic and foreign ending stocks for the 2017/18 marketing year were projected down 52 million bushels and up 55 million bushels, respectively, from the previous estimates. US stocks-to-use ratio is now projected at 15.9%. For soybeans, a great deal of yield uncertainty remains as August and September weather will be crucial in determining the National average soybean yield. In Tennessee, soybean yields were projected at 45 bu/acre the same as last year. Compared to July’s report, domestic and foreign 2017/18 marketing year ending stocks were increased 15 and 141 million bushels, respectively. For cotton, National average yield was projected to tie the all-time high of 892 lbs/acre from 2012. Tennessee cotton yield was project-ed at 1,036 lbs/acre, down 68 lbs/acre from last year. The US crop is now projected to be over 20.5 million bales for the 2017 crop year. For wheat, National average yield was reduced 0.6 bu/acre to 45.6 bu/acre. The bigger surprise with the growth in global wheat stocks projected at an all-time high of over 9.7 billion bushels (933 million domestic and 8.793 billion foreign). Corn September 2017 corn futures closed at $3.60 down 6 cents since last Friday. For the week, September 2017 corn futures traded be-tween $3.56 and $3.75. Across Tennessee, average basis (cash price-nearby futures price) strengthened or remained unchanged at Memphis, Northwest Barge Points, and Upper-Middle Tennessee and weakened at Northwest and Lower-middle Tennessee. Overall, basis for the week ranged from 26 under to 15 over the September futures contract with an average of 8 under the September futures contract at the end of the week. Corn net sales reported by exporters from July 28-August 3 were above expectations with net sales of 2 million bushels for the 2016/17 marketing year and 24.7 million bushels for the 2017/18 marketing year. Exports for the same time period were down from last week at 38.3 million bushels. Corn export sales and commitments were 100% of the USDA estimated total annual exports for the 2016/17 marketing year (September 1 to August 31) compared to a 5-year average of 104%. Ethanol production for the week ending August 4 was 1.012 million barrels per day up 10,000 from last week. Ethanol stocks were 21.347 million barrels, up 495,000 barrels. Sep/Dec and Sep/Mar future spreads were 14 and 26 cents, respectively.

Nationally, the Crop Progress report estimated corn silking at 93% compared to 85% last week, 96% last year, and a 5-year average of 94%; corn dough or beyond at 42% compared to 23% last week, 50% last year, and a 5-year average of 44%; corn dented at 7% com-pared to 8% last year and a 5-year average of 11%; and corn condition at 60% good-to-excellent and 13% poor-to-very poor. In Tennes-

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Crop Comments by Dr. Aaron Smith

see, the Crop Progress report estimated corn condition at 83% good-to-excellent 5% poor-to-very poor; corn silking at 99% compared to 98% last week, 98% last year, and a 5-year average of 98%; corn dough or beyond at 83% compared to 68% last week, 87% last year, and a 5-year average of 83%; and corn dented at 18% compared to 48% last year and a 5-year average of 38%. In Tennessee, Septem-ber 2017 cash forward contracts averaged $3.56 with a range of $3.38 to $3.82. December 2017 corn futures closed at $3.74 down 7 cents since last Friday. Downside price protection could be obtained by purchasing a $3.80 December 2017 Put Option costing 18 cents establishing a $3.62 futures floor. March 2018 corn futures closed at $3.86 down 6 cents since last Friday. Soybeans September 2017 soybean futures closed at $9.38 down 14 cents since last Friday. For the week, September 2017 soybean futures trad-ed between $9.30 and $9.81. Average soybean basis strengthened at Memphis, North West Barge Points, Upper-middle, and North-west Tennessee and weakened at Lower-middle Tennessee. Basis ranged from 47 under to 23 over the September futures contract at elevators and barge points. Average basis at the end of the week was 1 under the September futures contract. Net sales reported by exporters were above expectations with net sales of 1.7 million bushels for the 2016/17 marketing year and 23.5 million bushels for the 2017/18 marketing year. Exports for the same period were down from last week at 22.5 million bushels. Soybean export sales and com-mitments were 106% of the USDA estimated total annual exports for the 2016/17 marketing year (September 1 to August 31), com-pared to a 5-year average of 103%. September soybean-to-corn futures price ratio was 2.65 at the end of the week. Sep/Nov and Sep/Jan future spreads were 7 cents and 15 cents, respectively.

Nationally, the Crop Progress report estimated soybeans blooming at 90% compared to 82% last week, 90% last year, and a 5-year av-erage of 88%; soybeans setting pods at 65% compared to 48% last week, 67% last year, and a 5-year average of 62%; and soybean con-dition at 60% good-to-excellent and 12% poor-to-very poor. In Tennessee, the Crop Progress report estimated soybean condition at 75% good-to-excellent and 9% poor-to-very poor; soybeans blooming at 89% compared to 85% last week, 88% last year, and a 5-year average of 79%; and soybeans setting pods at 70% compared to 52% last week, 66% last year, and a 5-year average of 57%. In Tennes-see, October/November 2017 soybean cash contracts average $9.51 with a range of $9.00 to $9.87. November/December 2017 soy-bean-to-corn price ratio was 2.53 at the end of the week. November 2017 soybean futures closed at $9.45 down 11 cents since last Friday. Downside price protection could be achieved by purchasing a $9.50 November 2017 Put Option which would cost 29 cents and set a $9.21 futures floor. January 2018 soybean futures closed at $9.53 down 12 cents since last Friday. Cotton Delta upland cotton spot price quotes for August 10 were 67.76 cents/lb (41-4-34) and 69.01 cents/lb (31-3-35). Adjusted world price (AWP) decreased 0.95 cents to 62.46 cents per pound. Net sales reported by exporters were up from last week with net sales 75,800 bales for the 2017/18 marketing year. Exports for the same period were down from last week at 216,200 bales. 745,300 bales in net sales were carried over from the 2016/17 marketing year which ended July 31. Net export sales for the 2016/17 marketing year were reported at 13.82 million bales of upland cotton up 64% from the previous marketing year. Upland cotton export sales were 12% of the USDA estimated total annual exports for the 2016/17 marketing year (August 1 to July 31), compared to a 5-year average of 14%. Octo-ber 2017 cotton futures closed at 69.24 down 1.75 cents since last Friday. Oct/Dec and Dec/Mar cotton futures spreads were -0.99 cents and -0.20 cents, respectively. Nationally, the Crop Progress report estimated cotton squaring at 93% compared to 87% last week, 95% last year, and a 5-year average of 96%; cotton setting bolls at 58% compared to 46% last week, 68% last year, and a 5-year average 68%; cotton bolls opening at 8% compared to 9% last year and a 5-year average of 7%; and cotton condition at 57% good-to-excellent and 14% poor-to-very poor. In Tennessee, cotton condition was estimated at 81% good-to-excellent and 9% poor-to-very poor; cotton squaring at 98% compared to 97% last week, 97% last year, and a 5-year average of 95%; cotton setting bolls at 88% compared to 64% last week, 78% last year, and a 5-year average of 71%; and cotton bolls opening at 0% compared to 1% last year and a 5-year average of 0%. December 2017 cotton

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Crop Comments by Dr. Aaron Smith

futures closed at 68.25 cents down 2.37 cents since last Friday. For the week, December 2017 cotton futures traded between 67.75 and 71.2 cents. Downside price protection could be obtained by purchasing a 69 cent December 2017 Put Option costing 2.59 cents estab-lishing a 66.41 cent futures floor. March 2018 cotton futures closed at 68.05 down 2 cents since last Friday. Wheat In Tennessee, cash wheat ranged from $4.00 to $4.73. Wheat net sales reported by exporters were above expectations with net sales of 17.1 million bushels for the 2017/18 marketing year. Exports for the week were down from last week at 20.9 million bushels. Wheat export sales were 40% of the USDA estimated total annual exports for the 2017/18 marketing year (June 1 to May 31), compared to a 5-year average of 42%. Sep/Dec and Sep/Jul future spreads were 28 cents and 74 cents, respectively.

September 2017 wheat futures closed at $4.39 down 15 cents since last Friday. September 2017 wheat futures traded between $4.34 and $4.68 this week. September wheat-to-corn price ratio was 1.22. Nationally, the Crop Progress report estimated winter wheat har-vested at 94% compared to 88% last week, 93% last year, and a 5-year average of 92%; spring wheat harvested at 24% compared to 9% last week, 27% last year, and a 5-year average of 21%; and spring wheat condition at 32% good-to-excellent and 43% poor-to-very poor. December 2017 wheat futures closed at $4.67 down 15 cents from last Friday. In Memphis, July 2018 cash forward contracts ranged from $5.14 to $5.33 for the week. July 2018 wheat futures closed at $5.13 down 13 cents since last Friday. Downside price pro-tection could be obtained by purchasing a $5.20 July 2018 Put Option costing 40 cents establishing a $4.80 futures floor. Additional Information: Links for data presented:

U.S. Export Sales - https://apps.fas.usda.gov/export-sales/esrd1.html

USDA FAS: Weekly Export Performance Indicator – https://apps.fas.usda.gov/esrquery/esrpi.aspx

EIA: Weekly ethanol Plant Production - https://www.eia.gov/dnav/pet/pet_pnp_wprode_s1_w.htm

EIA: Weekly Supply Estimates - https://www.eia.gov/dnav/pet/pet_sum_sndw_a_EPOOXE_sae_mbbl_w.htm

Upland Cotton Reports - https://www.fsa.usda.gov/FSA/epasReports?area=home&subject=ecpa&topic=fta-uc

Tennessee Crop Progress - https://www.nass.usda.gov/Statistics_by_State/Tennessee/Publications/Crop_Progress_&_Condition/

U.S. Crop Progress - http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1048

USDA AMS: Market News - https://www.ams.usda.gov/market-news/search-market-news If you would like further information or clarification on topics discussed in the crop comments section or would like to be added to our free email list please contact me at [email protected].

6

Friday, August 4, 2017 — Thursday, August 10, 2017

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Aug 9.49 9.59 9.63 9.63 9.30

($/bushel) Sep 9.52 9.64 9.67 9.66 9.34

Nov 9.56 9.69 9.73 9.73 9.40

Jan 9.65 9.78 9.81 9.81 9.49

Mar 9.73 9.85 9.88 9.88 9.56

May 9.80 9.92 9.94 9.95 9.64

Corn Sep 3.66 3.72 3.69 3.72 3.57

($/bushel) Dec 3.81 3.86 3.83 3.86 3.71

Mar 3.92 3.98 3.95 3.98 3.83

May 3.98 4.04 4.01 4.03 3.89

Jul 4.03 4.09 4.06 4.08 3.94

Sep 4.07 4.12 4.09 4.11 3.97

Wheat Sep 4.54 4.63 4.57 4.59 4.40

($/bushel) Dec 4.82 4.90 4.84 4.86 4.68

Mar 5.03 5.11 5.04 5.07 4.90

May 5.17 5.24 5.19 5.22 5.05

Jul 5.26 5.32 5.27 5.30 5.14

Soybean Meal Aug 303 308 307 306 294

($/ton) Sep 305 309 309 308 295

Oct 306 311 311 310 297

Dec 309 314 314 312 300

Jan 310 315 315 314 301

Mar 312 317 317 316 304

Cotton Oct 70.99 71.22 71.91 71.82 69.26

(¢/lb) Dec 70.62 70.55 71.13 71.11 68.11

Mar 70.05 70.25 70.79 70.76 67.83

May 70.42 70.57 71.08 71.03 68.27

Jul 70.85 70.99 71.36 71.29 68.68

Live Cattle Aug 115.45 112.75 112.47 110.00 108.85

($/cwt) Oct 114.10 111.12 110.60 108.05 106.60

Dec 115.17 112.80 112.55 109.87 108.60

Feb 116.80 114.77 114.35 111.50 110.55

Apr 117.07 115.20 114.87 112.32 111.32

Feeder Cattle Aug 149.95 146.25 146.02 141.52 141.17

($/cwt) Sep 150.85 147.10 146.65 142.15 141.30

Oct 149.92 146.20 145.47 140.97 140.47

Nov 148.77 145.27 144.85 140.35 140.12

Jan 145.72 142.75 142.57 138.07 137.87

Mar 143.55 140.90 140.80 136.35 136.10

Market Hogs Aug 83.22 83.40 83.52 84.12 84.45

($/cwt) Oct 66.77 68.12 67.75 68.25 67.97

Dec 61.45 62.50 62.55 62.95 62.70

Feb 65.90 66.52 66.80 67.22 67.17

Apr 70.40 70.80 71.17 71.32 71.32

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 8,320 (10) Week ago: 6,454 (10) Year ago: 7,807 (11)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

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

Steers: Medium/Large Frame #1-2

300-400 lbs 139.00 179.00 160.72 163.93 165.12

400-500 lbs 132.50 163.00 150.57 157.62 154.24

500-600 lbs 130.00 158.00 145.00 154.14 144.84

600-700 lbs 119.00 147.50 139.25 147.79 138.81

700-800 lbs 120.00 143.00 135.23 139.73 135.04

Steers: Small Frame #1-2

300-400 lbs 129.00 150.00 138.17 ——— ———

400-500 lbs 130.00 140.00 135.54 ——— ———

500-600 lbs ——— ——— ——— 133.20 ———

600-700 lbs ——— ——— ——— ——— ———

Steers: Medium/Large Frame #2-3

300-400 lbs 130.00 162.50 146.13 147.64 149.75

400-500 lbs 123.00 146.00 134.96 146.26 140.76

500-600 lbs 120.00 146.00 133.20 138.61 131.13

600-700 lbs 119.00 131.00 125.56 132.95 121.57

700-800 lbs 119.00 131.00 125.90 126.59 114.40

Holstein Steers

300-400 lbs 102.50 104.00 103.24 118.88 ———

500-600 lbs 87.00 96.00 91.43 104.99 ———

700-800 lbs ——— ——— ——— 87.80 ———

Slaughter Cows & Bulls

Breakers 75-80% 62.00 68.65 67.45 70.84 81.00

Boners 80-85% 71.97 71.30 73.96 62.00 83.00

Lean 85-90% 53.00 78.00 62.56 60.94 68.95

Bulls YG 1 88.00 104.00 95.59 93.57 96.04

Heifers: Medium/Large Frame #1-2

300-400 lbs 122.00 160.00 142.29 147.04 147.64

400-500 lbs 120.00 152.00 137.22 144.69 138.20

500-600 lbs 117.00 148.75 133.27 139.14 131.69

600-700 lbs 109.00 136.00 127.06 133.38 124.52

Heifers: Small Frame #1-2

300-400 lbs 100.00 122.50 116.44 ——— 129.52

400-500 lbs 117.00 135.00 122.80 130.87 120.70

500-600 lbs 110.00 116.00 113.95 132.17 111.50

600-700 lbs ——— ——— ——— 129.75 ———

Heifers: Medium/Large Frame #2-3

300-400 lbs 114.00 154.00 129.60 136.03 132.52

400-500 lbs 117.00 139.00 126.76 133.33 125.45

500-600 lbs 110.00 134.00 122.83 129.57 122.87

600-700 lbs 109.50 130.00 116.26 124.13 116.41

Prices on Tennessee Reported Livestock Auctions for the week ending August 11, 2017

8

Friday, August 4, 2017 — Thursday, August 10, 2017

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

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

No. 2 Yellow Soybeans

Memphis 9.66-9.66 9.79-9.79 9.85-9.85 9.87-9.87 9.52-9.55

N.W. B.P. 9.64-9.72 9.80-9.84 9.78-9.84 9.78-9.89 9.46-9.56

N.W. TN 9.09-9.26 9.20-9.34 9.20-9.42 9.23-9.41 9.03-9.09

Upper Md. 9.37-9.47 9.47-9.59 9.52-9.63 9.52-9.63 9.23-9.30

Lower Md. 9.37-9.51 9.44-9.50 9.48-9.53 9.48-9.53 9.15-9.20

Yellow Corn

Memphis 3.58-3.61 3.64-3.67 3.63-3.64 3.66-3.67 3.51-3.54

N.W. B.P. 3.55-3.58 3.60-3.61 3.55-3.58 3.58-3.60 3.45-3.49

N.W. TN 3.46-3.47 3.52-3.52 3.44-3.50 3.47-3.52 3.32-3.39

Upper Md. 3.47-3.62 3.52-3.67 3.53-3.64 3.56-3.66 3.41-3.54

Lower Md. 3.77-3.82 3.82-3.87 3.79-3.85 3.82-3.87 3.67-3.72

Wheat

Memphis ——— ——— ——— ——— ———

Prices Paid to Farmers by Elevators

100120140160180200220240260

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

2011/2015 Avg 2016 2017

85105125145165185205225

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

2011/2015 Avg 2016 2017

8595

105115125135145155165175

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

2011/2015 Av g 2016 2017

35455565758595

105115

Tennessee Slaughter Cow PricesBreakers 75-80%

2015, 2016 and 5-year average

2011/2015 2016 2017

9

Athens Stockyard - August 9, 2017 Lot 149 (2 loads) 965 lb Holstein Steers- $92.50-TN Lot 150- 620 lb Blk/Chx Heifers- $145.00-TN Lot 151- 630 lb Mixed Heifers-$145.00-TN Lot 154-785 lb BLk/Bwf Steers- $140.00-TN East Tennessee Livestock Center - August 9, 2017 2 loads out of 151 steers; BQA certified producer; est. wt. 790 lbs.; 95% L&M-1s, 5% L&M-2s; medium grass flesh; 85% Black/BWF, 10% ChaX/Smoky, 5% Red/RWF—$139.25 1 load out of 90 steers; BQA certified producer; est. wt. 810 lbs.; 95% L&M-1s, 5% L&M-2s; medium grass flesh; 90% Black/BWF, 10% ChaX/Smoky—$138.50 1 load out of 100 steers; BQA certified producer; est. wt. 835 lbs.; 95% L&M-1s, 5% L&M-2s; medium flesh; 100% Black/BWF—$139.00 Mid-South Livestock - August 7, 2017 1 load of 55 steers; avg. wt. 906 lbs.; $139.00

8/8/17 TN Livestock Producers Fayetteville Receipts: 450 (204 graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 300-400 lbs 147.00-153.00 400-500 lbs 145.00 400-500 lbs 138.50-145.00 500-600 lbs 141.00-149.00 500-600 lbs 129.00-134.50 600-700 lbs 135.50-139.50 600-700 lbs 129.00-132.50 700-800 lbs 128.00-134.00 700-800 lbs 126.00-130.00 800-900 LBS 130.00 Bulls: Med & Lg 1-2 400-500 lbs 141.00-145.00 500-600 lbs 133.00-138.00 600-700 lbs 115.00-128.00 8/8/17 Somerville Livestock Sales Receipts: 184 Steers/Bulls: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 137.00-155.00 300-400 lbs 120.00-137.00 400-500 lbs 134.00-149.00 400-500 lbs 130.00-145.00 500-600 lbs 126.00-142.00 500-600 lbs 122.00-131.00 600-700 lbs 130.00-141.00 600-700 lbs 131.00-137.00 700-800 lbs 119.00-131.00 700-800 lbs 129.00

Video Sales

Self-Reported and Self-Graded Livestock Markets

10

Canadian Meat Inspection System Questioned by USDA Report

By Greg Henderson August 11, 2017

A recent U.S. Department of Agriculture audit of Canada’s meat, poultry and egg inspection systems found “systemic” inspection and sanitation problems which raise “significant questions about the Canadian system.”

The report is from a series of “onsite equivalence verification” audits conducted by USDA’s Food Safety and Inspection Service (FSIS) last September at seven Canadian slaughteer and pro-cessing facilities. The most “significant” concern, FSIS said, was the Canadian inspectors were not conducting carcass-by-carcass inspections for contaminations by “feces, milk or inges-ta” before stamping the carcasses as inspected. Such contami-nation is a primary pathway for pathogen transmission, includ-ing E. coli.

"Post-mortem inspection procedures that do not ensure car-cass-by-carcass inspection . . . raise significant questions about the Canadian system," FSIS officials wrote in the audit.

The audits were conducted in September 2016 in slaughter-houses in Alberta, British Columbia, Ontario and Quebec and shared with the Canadian Food Inspection Agency in April.

According to the report, the U.S. rejected a total of 1.7 million pounds of Canadian meat and poultry at the port of entry, of which about 130,000 pounds were found to have been contam-inated with fecal matter, ingesta or other pathogens. A total of about 4.8 billion pounds of meat and poultry were exported to the U.S. from Canada during that time period.

The U. S. requires carcasses to be inspected by a government inspector to confirm they aren't contaminated before they are stamped "inspected and passed." The rule applies both to meat from the U.S. and carcasses imported into the country. The U.S. government could temporarily ban Canadian plants from ex-porting their products to the United States if the requirements aren't met.

The Canadian Food Inspection Agency issued a statement claiming Canada’s food system is safe.

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"Both Canada and the U.S. have rules that prohibit the produc-tion of meat from carcasses that are contaminated," CFIA spokeswoman Maria Kubacki told CBC News. "Both countries have high standards for food safety. Canada and the U.S. have different approaches to verify that carcasses are free of con-tamination, and neither Canada nor the U.S. tolerates contami-nation on food animal carcasses."

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