Wednesday, February 1, 2006 - Daily Update
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| 1.
EPA Agreements Anger Environmentalists
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Environmentalists are up in arms over the Environmental Protection Agency’s agreement with large-scale livestock operations. The agreements—signed with almost 2,700 livestock operations in 42 states—allow the farms to escape penalties for air and water pollution in exchange for data to help prevent pollution in the future.
Environmentalists plan to challenge the agreements in court, and say they allow farms a free rein to pollute.
Source: Oakland Tribune/ Associated Press/ John Heilprin, Jan. 31, 2006 Source URL: http://www.insidebayarea.com/oaklandtribune/news/ci_3460628 |
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| 2.
Patent Granted for Rapid Prion Detection Test
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Genesis Bioventures, Inc. (GBI) today announced that the US Patent and Trademark Office has issued a Notice of Allowance for the Rapid Prion-Detection Assay developed by Prion Developmental Laboratories (PDL), a portfolio company of GBI. The patent for the Rapid Prion-Detection Assay protects this method of testing for all transmissible spongiform encephalopathies (TSEs) in animals and humans.
Source: PRNewswire/ Genesis Bioventures Inc./ News Release, Jan. 31, 2006 Source URL: http://www.prnewswire.com/ |
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| 3.
USDA’s Farms: Dairy Farms Fall 4%; Since 2003, 9%
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The number of farms in the United States in 2005 is estimated at 2.1 million, 0.6 percent fewer than in 2004. Total land in farms, at 933.4 million acres, decreased 2.9 million acres, or 0.3 percent, from 2004. The average farm size was 444 acres during 2005, an increase of one acre from the previous year. The decline in the number of farms and land in farms reflects a continuing consolidation in farming operations and diversion of agricultural land to nonagricultural uses.
Milk cow operations were 4 percent below last year and 9 percent below two years ago.
Source: USDA/ NASS, Jan. 31, 2006 Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/fnlo0106.txt |
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| 4.
Gasoline, Moth Ball Chemical Found in School Milk
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Officials in South Carolina remain puzzled as to how milk cartons in two schools became contaminated by traces of gasoline and a chemical used in moth balls.
The milk was discovered the first week of January at a primary and an elementary school. School officials don’t believe any students drank the contaminated milk because the odor coming from the cartons was so strong.
Source: MyrtleBeachonline/ Associated Press, Jan. 31, 2006 Source URL: http://www.myrtlebeachonline.com/mld/myrtlebeachonline/13751916.htm |
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MARKETS
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| 5.
Yonkers’ Dairy Market Update
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Milk production growth continues its torrid pace, with total U.S. production up 3.9% last month compared to December one year ago. For the 23 major dairy states, production grew 4.3%. This growth was led by the usual state suspects, with New Mexico up 13.8%, Texas up 12.3%, and Idaho up 10.9%. Some Midwest states also saw significant increases, with Indiana gaining 9.3% and Michigan up 6.4%. USDA reports that, subject to revision, 2005 calendar year milk production in the U.S. grew by over 3.6% after accounting for the extra leap day in 2004.
Source: International Dairy Foods Association/ Bob Yonkers, Jan. 30, 2006 Source URL: http://www.idfa.org/news/stories/2006/01/marketupdate.cfm |
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| 6.
Thomas’ MI Dairy Market Update
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The past is interesting, but more importantly: What does the future hold for milk prices? Milk prices are very sensitive to supply and demand balance. Table 1 compares annual percentage changes in milk production and commercial disappearance of dairy products with average annual Class III milk price. Intuitively, one would expect if the difference between the percentage change in commercial disappearance and milk production was positive (i.e., percentage-wise demand grew faster than supply), Class III prices would be affected positively. Conversely, one would expect if the difference between the percentage change in commercial disappearance and milk production was negative (i.e., percentage-wise supply grew faster than demand), that Class III prices would be affected negatively.
Source: Michigan State University/ Michigan Dairy Review/ Craig Thomas, January 2006 Source URL: http://www.msu.edu/user/mdr/archives/mdrvol11no1.pdf |
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| 7.
Ag Prices: Dairy Drops Again
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The preliminary All Farm Products Index of Prices Received by Farmers in January, at 112, based on 1990-92=100, decreased 3 points (2.6 percent) from December. The Crop Index is down 3 points (2.7 percent) and the Livestock Index also decreased 3 points (2.5 percent). Producers received lower commodity prices for lettuce, turkeys, eggs, and hogs. Higher prices were received for cattle, oranges, corn, and cotton. The overall index is also affected by the seasonal change based on a 3-year average mix of commodities a producer sells. Increased average marketings of cattle, soybeans, corn, and strawberries offset decreased marketings of grapes, tomatoes, dairy, and cotton.
Dairy Products: The January index, at 111, is down 1.8 percent from a month ago and 9.0 percent lower than January last year. The January all milk price of $14.50 per cwt is down 30 cents from last month and down $1.40 from January 2005. The fluid grade milk price is down 20 cents and the manufactured grade milk price is down 30 cents from the previous month.
Source: USDA/ NASS, Jan. 31, 2006 Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/agpr0106.txt |
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| 8.
Weekly Purcell Commodity Market Report
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CORN on Monday at the Chicago Board of Trade (CBOT) opened firm before moving to new one-month highs with help from the soybean complex. However, the absence of bullish momentum near the highs allowed mild profit taking. The 14 day RSI on the MAR’06 futures at 59.18 and the DEC’06 corn contract at 62.55 restrained prices. The Relative Strength Index (RSI) indicates a market is overbought at 70 or greater and oversold at or below a value of 30. Corn futures on the MAR’06 closed down 1¢/bu at $2.176/bu while the DEC’06 corn futures closed down 0.4¢/bu at $2.536/bu. Exports were quite overnight after demand last for corn was fast paced amid a large world supply of feed grains. USDA said early Monday that 36.1 million bushels of corn were inspected for export last week. This was above estimates of between 29 and 35 million export bushels. Hot weather worries in Argentina stirred speculation of stressed crops as the crop there is now in the key developmental stage of pollination. If hot conditions persist, production will be negatively affected in this important kernel-filling stage. Weather forecasters are predicting hot, dry weather through next weekend in Argentina while calling for moisture relief in Brazil. Cash bids Monday were mostly lower for corn in the Midwest after last week’s higher bid offers sparked farmer selling. Friday’s CFTS Commitments of Traders report for futures and options showed the aggregate for large bull funds was down 1,344 contracts from the previous week at 148,403 lots. The bears were up 27,390 at 154,316 lots. Chart resistance on the MAR’06 corn futures was up 10¢-11¢/bu from last week at $2.22/bu. Key technical support for the DEC’06 corn contract is placed at $2.52/bu. Both cash sellers and hedgers should hold with last week’s considerations of forward pricing the ’06 cash crop at 35% … and for the hedgers, be short on 50% of the ’06 crop.
Source: Virginia Cooperative Extension/ Mike Roberts, Jan. 31, 2006 Source URL: http://www.ext.vt.edu/news/periodicals/purcell/2006wp/04.html |
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PRODUCTION
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Hay and Corn Silage vs. Full-Time Grazing
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Grazing young, highly digestible swards with and without supplemental hay or corn silage (5.5 kg of DM/d) offered overnight was tested for its effects on ruminal pH and chewing activity.
Throughout the day, hay-supplemented cows had a significantly lower pH (- 0.23) than full-time grazing cows, and the period of pH < 5.8 was longer compared with corn-silage fed cows ( 77 vs. 11 min). Nocturnal supplement feeding gave no advantage over full-time grazing, and supplemental hay led to lower daytime pH.
Source: Effects of supplemental hay and corn silage versus full-time grazing on ruminal pH and chewing activity of dairy cows. Journal of Dairy Science 88 (2): 711-725, 2005. Graf, C.M.; Kreuzer, M.; Dohme, F. |
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| 10.
Effect of Protein on Embryo Quality, Recovery
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We compared the effects of two different dietary protein levels easily achieved in practical conditions on embryo number and quality in superovulated heifers.
It is concluded that a long-term moderate increase in the content of crude protein fed to energy-adequate heifers does not seem to affect superovulatory response and the number of embryos recovered, but it may be advantageous to the quality of embryos.
Source: Effect of dietary protein on embryo recovery rate and quality in superovulated heifers. Animal Reproduction Science 87 (4-Mar): 193-202, 2005. Mikkola, M.; Mantysaari, P.; Tammiranta, M.; Peippo, J.; et al. |
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