MCA officers were among over 200 NCBA members addressed by President George Bush at last week’s Washington Spring Conference. Bush commented, “I appreciate being with people who understand the importance of faith, family, hard work, and good values. I like to remind people, every day is Earth Day if you make a living off the land.”  President Bush told cattle producers that Congress needs to keep taxes low, approve a number of pending trade deals and reauthorize Trade Promotion Authority (TPA) to help keep our economy strong.
A full copy of President Bush’s remarks is posted on the White House website at www.whitehouse.gov.

Congressional Visits - While in Washington for NCBA’s Spring Conference, MCA President Joe Magee and Past-President Gale Martin visited each of Mississippi’s six congressional offices. Tax reform and trade issues were just two in a handful of priority issues discussed in these meetings.

Cattle Market Notes - Friday, March 30, 2007, Dr. John Anderson, Mississippi State University - Cash fed cattle prices dropped about $1 last week compared to the week before.  This week, cash fed cattle business developed pretty early, with moderate trade occurring in all major feeding areas on Wednesday.  Overall, prices were about another $1 lower -- $95 to $95.50 in the Southern Plains, $96 to $97.50 in Nebraska and Colorado.
Feeder prices around the country were mostly higher.  At Oklahoma City this week, prices on feeder steers were $1 to $3 higher. At Lexington, Kentucky, feeder steer and heifer prices were firm to $2 higher. 
At Mississippi auctions this week, prices on steers were $2 lower; and prices on heifers were $5 higher.  For the week, feeder steer prices in Mississippi were as follows: 200-300 pounds, $150-$162; 300-350 pounds, $140-$150; 350-400 pounds, $132-$140; 400-500 pounds, $120-$132; 500-550 pounds, $110-$120; 550-600 pounds, $105-$110; 600-650 pounds, $95-$105; 650-700 pounds, $90-$95; 700-800 pounds, $86-$90.  Prices on slaughter cows were steady this week.  For the week: breakers, $41 to $43; boners (850-1,200#), $43-$50; lean (850-1,200#), $42-$49.
Live cattle futures declined early in the week, dropping sharply on Tuesday.  Live Cattle futures closing prices on Friday (with change from last Friday’s close in parentheses) were as follows: April $97.60 (-0.50); June $94.87 (+0.17); August $92.25 (-0.05); October $96.35 (+0.13); December $96.57 (-0.08)
After bouncing around early in the week, Feeder Cattle futures shot higher on Friday in the wake of Friday’s much-anticipated Prospective Plantings report.  That report (details below) sent corn futures down the daily limit (20 cent/bu) on Friday, fueling a near-limit-up move in Feeder Cattle futures.  Feeder Cattle futures closing prices on Friday (with change from last Friday in parentheses): April $108.75 (+3.63); May $109.97 (+3.25); August $111.02 (+2.80); September $109.40 (+3.45); October $109.00 (+1.95).

Friday saw the release of the 2007 Prospective Plantings report from USDA, the most complete and objective look at producers’ planting intentions available to the market.  The report was something of a shock to the market.  Corn plantings are projected at 90.45 million acres this year.  If that projection holds, that will be an increase of 15.5% from last year’s 78.327 million acres planted.  The average of pre-report estimates for corn planted acres was 88.061 million, so the actual number in the report came in well to the high side of expectations.  In fact, of 22 firms surveyed by Dow Jones prior to the report, only one gave a projection that turned out to be higher than USDA’s number.
Predictably, the market reacted strongly to the report, with contracts though about mid-2008 registering limit-down moves on Friday.  This feels like a bit of a reprieve to livestock producers, with all contracts on the board suddenly trading below the $4 mark.  Keep in mind, however, that risks in the corn market remain great.  The Prospective Plantings report gives planting intentions.  It does not reflect a crop already in the ground – much less already in the bin. Dr. Anderson’s complete report can be accessed from www.mscattlemen.org

Beef Included in Agreement with Korea - The U.S. and Korea successfully concluded free trade agreement negotiations yesterday. Terms of the agreement reportedly include a 15-year phase-out of Korea ’s 40% tariff on imported U.S. beef.
Congress will have to make an up or down vote on the entire agreement under trade promotion authority rules. Uncertainty with regard to Korea ’s short-term position on beef trade with the U.S. could have an impact on the vote. Korea officially is open to U.S. beef, but is using technical restrictions to keep its market effectively closed.
Korea is the world’s 10th largest economy. During 2006, two-way trade between the U.S. and Korea totaled $72 billion.
Historically, Korea has been one of the most protected agricultural markets in the world. Under the agreement, more than $1 billion worth of U.S. ag exports to Korea will become duty-free immediately, with most remaining tariffs and quotas being phased out over the first 10 years the agreement is in place.

Corn Futures Drop to Lowest Level Since January - Corn futures were down more than 5 percent Friday on the Chicago Board of Trade after USDA released a report indicating that 2007 would see the largest corn sowing in 63 years.
If all of the corn planted is harvested, the acreage would yield about 12.5 billion bushels. But some worry that the weather may take its toll, and ending stocks will be much lower than that.
"Much will depend on the weather and other factors," Bill Roenigk, senior vice president and chief economist of the National Chicken Council, said in a prepared statement. "Even with increased acreage, there is little doubt that corn will remain at historically high price levels."
Even if all 12.5 billion bushels are harvested, analysts believe supply still will not meet demand. May-delivery corn dropped to $3.745 on the CBOT Friday.

Burger King Embraces "crate-free" Pork and Eggs - Add Burger King to the list of food providers that are embracing "crate-free" pork. Officials for the world’s second-largest hamburger chain will start buying eggs and pork from suppliers that don't "confine their animals in cages and crates." Burger King will start by securing 2 percent of its eggs from "cage-free" suppliers, and 10 percent of its pork from producers that "allow sows to move around inside pens, rather than being confined to crates." It's not clear if that just applies to gestation crates or also includes farrowing crates. Burger King officials say they will purchase more as more farmers shift to the appropriate methods and product prices become more competitively priced.
This is the latest success for animal welfare advocates who are increasingly gaining mainstream victories. Burger King's changes apply to suppliers in North America and Canada, where the chain purchases more than 40 million pounds of eggs and 35 million pounds of pork annually. Officials plan to push cage-free egg purchases to 5 percent by year's end, and its crate-free pork purchases to 20 percent. From Drovers Journal

Threats Increase Against Iowa Livestock - Since August, there have been at least seven significant acts of violence and threats against farms in Iowa, according to the Coalition to Support Iowa's Farmers. Incidents have included the shooting of a dozen cows and a fire that destroyed a 370-head hog nursery, which may have been intentionally set. Primary targets of threats and violence have been hog producers expanding their operations. No arrests have been made.

U.S. Cattle on Feed Down Four Percent - The National Agricultural Statistics Service (NASS) reports cattle and calves on feed for harvest in the U.S. — for feedlots with capacities of 1,000 head or more — totaled 11.6 million head March 1. The inventory was 4% below March 1, 2006, but 4% above March 1, 2005.
Placements in feedlots during February totaled 1.66 million, 4% above 2006 and 9% above 2005. Net placements were 1.58 million. Marketings of fed cattle during February totaled 1.71 million, 7% above 2006 and 5% above 2005. Other disappearance totaled 75,000 during February, 3% above 2006 but 3% below 2005.  – NASS 

President Bush Highlights Importance of Beef Trade - President George W. Bush told cattle producers last Wednesday that Congress needs to pass a number of pending trade deals and reauthorize Trade Promotion Authority, so America's food producers and agriculture sector can better compete in a growing global marketplace. "Every time we break down a barrier to trade, someone who's raising a cow will have an opportunity to sell that cow into a better market," said President Bush. "My attitude on trade is ‘you treat us the way we treat you — and then let’s compete.'" Members of the National Cattlemen’s Beef Association were treated to a visit by the president as part of NCBA’s Annual Spring Legislative Conference in Washington, D.C.

President Bush touched on a number of these in his remarks on March 28…
…On the Death Tax: “I really believe Congress needs to pay attention to the effects of the death tax on our farmers and ranchers. If people are concerned about keeping land in the hands of the family rancher, the best way to do so is to get rid of the death tax for those who ranch the land, once and for all. When you're working the halls of Congress, I hope you work hard on the death tax issue. There's no excuse not to get rid of it. Now, you'll hear people say, we don't want to give tax relief to the billionaires. Okay, fine. But let's put a bill on the President's desk that respects the ranchers of the United States of America, and the farmers, and the small business owners, and I'll sign it.”
…On Reopening Beef Trade Markets: “Trade obviously creates issues. We end up with disputes and opportunities for people to make mischief when it comes to trade, people to use excuses for not opening up markets. And we went through one of those periods with you all, and that is with the BSE issue. Because of our collaborative efforts and a strong scientific approach to deal with BSE, we can say to global consumers with complete assurance, American beef is safe and it is good to eat.”
…On the Farm Bill: “I'm looking forward to working with you on a farm bill that's good and decent and fair. I want to remind you in the bill we submitted to Congress we asked for a $17-billion increase in conservation spending over a 10-year period. That includes money for CRP, and a 30-percent increase for EQIP. Plus $1.75 billion on water conservation programs. I think this is a wise use of our money. I'm interested in a farm bill that enhances conservation, that recognizes the contribution our ranchers make, that is fair, that is reform oriented, and helps us compete in the global marketplace.”

Don't Miss NCBA’s Cattlemen to Cattlemen - Tune into NCBA’s Cattlemen to Cattlemen on RFD-TV Tuesday, April 3rd, at 7:30 p.m. featuring techniques from veterinarians on how to properly handle and administer vaccines, more market watch information, and we'll also hear from the voice behind beef check-off advertising. In addition, we'll feature news updates and a look at the day in the life of a beef industry trailblazing team.
NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. The show airs Tuesdays at 7:30 p.m. and is rebroadcast Wednesdays at 3:30 a.m. and 11:30 a.m., and Saturdays at 9 a.m. For more information, visit www.cattlementocattlemen.org.

Apr 3                      Collegiate CCA
Apr 5                      Wayne CCA
Apr 12                    Magnolia Beef & Poultry Expo
Apr 18–21               Region II, Kissimmee, FL
Apr 21                    Pike CCA Field Day
Apr 23                    Statewide Cattlemen’s Exchange
Apr 24                    Marshall CCA
Apr 27-28               Jr. Limousin Field Day, Raymond
Apr 28                    MS Limousin Ass’n meeting, Raymond
Apr 28                    Magnolia Classic Santa Gertrudis, Terry
May 4-5                 Angus Banquet & Sale, Hinds CC
May 8                     Forage Bull Test Sale, Tylertown
May 17                   Webster CCA
June 25–27             Making Tracks Camp

Mississippi Cattlemen's Association
680 Monroe Street, Suite A
Jackson, MS 39202
(601) 354-8951
missca1@bellsouth.net