Thoughts on the cattle market. Geo Political & Cornavirus keeping a hold of the markets. How the politics and global work together. Feeder cattle stabilize-could we have seen a stronger rally. Liking the hogs. Grains stabilize rally could be coming. Argentina raised their export taxes on soybeans. Combine of corn still going on. Stock market. There is an end to the chunk of news…but not soon enough
U.S. pork producers don’t seem optimistic about a potential trade deal with the European Union coming together anytime soon. Nick Giordano is the Vice President of Global Government Affairs for the National Pork Producers Council.
Giordano tells Politico that he’s “very skeptical” that the two sides will even reach a mini agreement in the weeks ahead. He feels the real goal should be a comprehensive trade pact covering all sectors of agriculture. “It’s outrageous that a market of that size, with that level of income, is so closed to us,” Giordano says. “They’re stealing jobs from us because of their protectionism and that’s unacceptable.”
The VP says there will be widespread support in the U.S. agriculture community for the Trump Administration to take tough action against the EU if there are no concessions regarding a more open EU market. Meantime, U.S. cattlemen might annually sell $4 billion worth of beef to China within the next five years.
Kent Baucus, Senior Director of International Affairs with the National Cattlemen’s Beef Association, says the Phase One trade deal and the meat shortage in China cause by African Swine Fever should drive U.S. beef exports higher. “We haven’t even scratched the surface on the Chinese market,” he says. “There is a tremendous amount of unmet protein demand in China.
Another low day in the markets, is the aid payment talk trigger some worries in the market place? Waiting for trade deals to kick. Bean funds are short going into the weekend. Outlook forum brought no surprises. Now what? Ethanol margins flat, weather market heading into spring planting. Dollar vs. real. Livestock…hogs continue on a roller coaster-a lot of production out there, but no place to go globally. Long term effects on the hog markets.
There are countless articles about the fake meat business lately and most of them are little more than promotional pieces for the companies producing plant-based alternatives to meat. A recent Wall Street Journal (WSJ) article titled “This Anti-CEO’s Mission Impossible: Use Capitalism to Kill Meat,” took a slightly different path, expressing a small dose of skepticism about the long-term prospects for fake meat products and the ability of companies such as Impossible to turn consumers toward a vegetarian lifestyle in large numbers. We take the fake meat industry’s attacks and attempts at growth very seriously. However, there is little evidence to suggest that plant-based alternatives are anything more than a fad being driven by massive investments in advertising, outdated information and many false or misleading claims about the impact U.S. beef production is having on the planet.
Impossible Foods CEO Pat Brown, who was profiled in the WSJ piece, is well-known for his slanted views on this topic, and his outrageous plans for his products. However, his bluster isn’t being matched by performance. Despite spending millions to promote plant-based alternatives to meat, these products have failed to make significant gains in market-share. The reason is simple. The products Mr. Brown and others are producing aren’t being demanded by consumers.
Despite an admission by Mr. Brown that “It’s not going to work telling people how to eat,” he’s doing exactly that by using misinformation to paint a false narrative. Mr. Brown and his followers are using the popular tactic of climate shaming to advance the Impossible cause. Citing global livestock GHG emission numbers to lure consumers into his snare, he ignores the fact that U.S. beef’s footprint is miniscule. According to the U.S. Environmental Protection Agency, beef production in the United States is responsible for just 2 percent of all U.S. greenhouse gas emissions. American beef production’s contribution to greenhouse gas emissions is far less than sectors such as transportation, at 29 percent or electricity generation, which accounts for 28 percent.
If solving climate concerns was Mr. Brown’s intention, he should have focused his energy on replacing fossil fuels, not replicating protein. Trying to solve a climate crisis by removing beef from American diets is the equivalent of trying to make it to the moon using a ladder. It’s likely Mr. Brown and others promoting their alt-meat products know the facts and choose to ignore them; instead they spout misleading emissions numbers and rely on the basest form of marketing to guilt American consumers into buying something that they don’t want, while enriching themselves.
While Impossible may continue to refine its products, they will still be the opposite of what consumers expect when making a purchasing decision. Today’s consumers want simple, easy-to-understand foods. They want natural products that are minimally processed and fresh. Over time, when consumers compare a single-ingredient product such as beef to the periodic table of chemicals included in an Impossible product, no amount of climate shaming will convince consumers to ignore the fact that Impossible’s Frankenpatty was created in a lab. Until then, we must continue to fight together against the misleading claims and false promises being made by Mr. Brown and those like him.
Troy: Higher corn & wheat, lower soybeans after a 3 day weekend. Coronavirus fund positions & markets. Australia is short on wheat. Eric-Cattle & demand. Australia and export movement. Cold storage has a full freezer would give the U.S. an export opportunity.
CENTENNIAL, COLO.– Mark Frasier of Fort Morgan, Colo., was elected 2020 president of CattleFax at the organization’s annual meeting, held in conjunction with the Cattle Industry Convention and NCBA Trade Show in San Antonio, Texas, Feb. 4-7.
Frasier is a cow/calf, stocker operator and cattle feeder in Eastern Colorado and is active in his community and local cattlemen’s association. He is a past president of the Colorado Livestock Association and serves on and has chaired the National Cattlemen’s Beef Association Resolutions Committee.
President elect is Pono Von Holt of Kamuela, Hawaii. Von Holt is a cow/calf and stocker operator as well as a cattle feeder. He has served as president of the Hawaii Cattlemen’s Association, chair of NCBA Cow/Calf Council and president of the Ranchers Renaissance Cooperative. Pono is also active in many local boards in Hawaii.
Jeff Sternberger of Ingalls, Kan., was elected as the new Central Region director while Jerry Adams of Broken Bow, Neb., and Dale Smith of Amarillo, Texas, were re-elected as directors for the North Plains and Southwest regions, respectively.
Other directors currently serving terms for CattleFax are: Don Quincey, Chiefland, Fla., Southeast director and immediate past president; Jeff Sparrowk of Clements, Calif., director for the Western Region; and Midwest Director Nick Hunt of Atlantic, Iowa. Chris Kalkowski of Omaha, Neb., continues to serve as finance director.
Nebraska — Ben Sasse, U.S. Senator and relentless advocate for Nebraska agriculture, earned the endorsement of the future, current, and immediate past Presidents of Nebraska Cattlemen.
“I’m proud to have the support of cattlemen across Nebraska, and I’m proud to fight for them in Washington. Nebraska runs on the hard work of our ag industry. Our ranchers feed the world — that’s a big job, but Nebraska gets it done. Our farm and ranch families deserve the best because they produce the best.” – U.S. Senator Ben Sasse
“Washington has a lot to learn from Nebraska — and Ben Sasse makes sure they’re listening to us. We’re the best in the world at what we do, and Ben has worked hard to put Nebraska ag — and our producers — first. He fights for us, we’ll fight for him.” – Nebraska Cattlemen President Ken Herz, Lawrence
“Nebraska’s cattlemen and women spend our lives raising the absolute best beef in the world. It’s pretty simple: we want less government interference and a whole bunch more trade. Ben Sasse gets that and fights for us.” – Nebraska Cattlemen President-elect William Rhea III, Arlington
“Ben Sasse stood up to fight for President Trump’s USMCA trade deal and introduced livestock haulers legislation that pushed back against overly strict regulations and maintained safety on our roads. That stuff matters to Nebraska’s producers — and that’s why cattlemen across our state are supporting Ben Sasse for U.S. Senate.” – Nebraska Cattlemen Immediate Past President Mike Drinnin, Clarks
Demand vs. Supply. Coronavirus continues. THIS WEEK’S WEATHER IN THE HARD RED WHEAT BELT REMAINING DROUGHT-STRICKEN FOR WESTERN & WEST-CENTRAL KANSAS, THE ACREAGE REPORT TODAY BEING UPDATED, & THE FRENCH WHEAT CROP CONDITIONS, WHEAT REMAINS OUR MAJOR PRICE-LEADER FOR FUNDAMENTALLY-RELATED/CURRENCY-RELATED SHORT-COVERING A bright spot is the cattle market.
Markets continue to narrow. Grains trade lower on a Thursday. Commitments are down 26% from a year ago on corn. Will we be able to move forward? Beans were able to test $9.00. Coronavirus continues to raise issues, and avian bird flu continues to be an issue. More spreading from hogs to cattle. Hogs might have seen a new low. Markets right now importing into China causing problems.
Coronavirus continues to be talked about. Markets are just not sure what to do at this time, in this phase with the Central Banks continue to print money & China in continued lock down. More time is needed to gain clarity on how long the demand side hiatus will last. Markets will continue to struggle. Any good news could make the markets take off-but any stagnate bad news will have some ill effects. New Zealand weather-could have an effect on our milk prices here in the United States. Shawn shares his thoughts on how hogs are some of the hardest hit when a pandemic starts, but they are the first to reverse when things start to turn around. Australian drought starting to see some rains-that will play in the cattle markets.