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AMERICAN                                                                                   The Midwest Cattleman · March 10, 2022 · P12
      continued from page 3
      food products to customers  10 export markets all saw                   “It’s clear that our inter- and infrastructure challeng-
      around the globe and that the  gains in 2021, with six of the  national trading partners  es through the work of the
      Biden-Harris        Administra- 10 – China, Mexico, Canada,  are responding favorably to a  Administration’s                     Supply
      tion’s agenda is working for  South Korea, the Philippines,  return to certainty from the  Chain Task Force and calling
      American farmers and pro- and Colombia – setting new  United States,” Vilsack said.  out ocean carriers that are
      ducers,” Vilsack said. “This is  records. Worldwide  exports  “We owe our thanks to Amer- putting  profits  above  their
      a major boost for the economy  of many U.S. products, in- ica’s agricultural producers  responsibility to serve both
      as a whole, and particularly  cluding soybeans, corn, beef,  who always work hard to  importers and exporters. And
      for our rural communities,  pork,  dairy,  distillers  grains  be  reliable  global  suppliers  we’re expanding opportuni-
      with agricultural exports  and pet food, also reached all- and the Biden-Harris  Ad- ties for agricultural exports
      stimulating local economic  time highs. China remained  ministration and USDA are  by knocking down trade bar-
      activity, helping maintain  the top export destination,  fighting hard on their be- riers and partnering with in-
      our  competitive  edge  glob- with  a  record  $33  billion  in  half to keep our home-grown  dustry on marketing and pro-
      ally, supporting producers’  purchases, up 25 percent  products moving around the  motion efforts worldwide.”
      bottom lines, and supporting  from 2020, while Mexico  world. We’re  strengthening
      more than 1.3 million jobs  inched  ahead of  Canada to  relationships  with  our  trad- USDA
      on the farm and in related  capture the number two po- ing partners and holding
      industries such as food pro- sition with a record $25.5 bil- those partners accountable
      cessing and transportation.”       lion, up 39 percent from last  for their commitments. We’re
         The United States’ top  year.                                      addressing      transportation

      continued from page 3
      COVID in the US. 2022 gives  ketings            and
      the appearance of change.          placements,
         Feeder cattle movements  will reveal a
      are      reasonably       strong drop      in    the
      through January and Febru- number of cat-
      ary.   Prices likewise remain  tle on feed over
      strong  as cattle  feeding  or- 120 or over 150
      ganizations are more ag- days. However,
      gressively chasing available  the normal sea-
      animals and lighter animals.   sonal pattern
      This is in the face of Cattle on  which is an in-
      Feed reports that have com- crease so an in-
      municated reasonably strong  ventory return-
      placements through the fall  ing to more
      – for certain placements have  normal levels.
      not backed off. Dry weather           While tight-
      in the northern plains and in  ening supplies
      the mountain west, as well  are being re-
      as deteriorating wheat pas- vealed, the de-
      ture conditions, are pushing  mand side of
      animals to the feeding sector  the picture of
      – which is all too pleased to  the beef mar-
      pay better than $2 a pound  ket is nothing
      for 5 weight animals. It is  short of incred-
      anticipated that February’s  ible. Strong exports relative            The  fall  run  of  calves  has  the cattle markets do not
      report will reveal the extent  to imports, headline retail            persisted because of the lack  chart like the grain markets.
      of placements and reenforce  beef prices, huge retail and             of forage and price of it and  Cattle do not jump to new
      the likelihood of much short- packer  margins are  all evi-           other feedstuffs. DEC corn fu- higher levels like soybeans
      er placements towards May.         dence  of this  demand.  With      tures hover at $6.00/bu some  do.   Rather there are per-
         Federally inspected daily  the         downstream        market    ten months from expiration.  sistence moves higher with
      fed steer and heifer slaugh- conditions such as they are              This is one of the strongest  periodic sharp down moves.
      ter has been remarkable  then it is difficult to be bull-             earliest prices with which I  Live cattle contracts have
      during February. January  ish there.  What seems more                 am familiar.  But it’s hard to  trends in place and have bro-
      revealed many problem days  reasonable is that retail and             argue with that trend under- ken resistance – buy signals.
      with 86 to 89 thousand head  packer  margins  may  shrink             lying that contract. Speaking  However, feeder cattle con-
      slaughtered.  Market watch- and improve the prices at the             of.                               tracts are holding at resis-
      ers  had expected more  as  fed and feeder level. It will be  The Markets                               tance and less so on more de-
      certainly those animals were  interesting to see what these             What does the technical         ferred contracts – sell signals.
      available. Daily slaughter in  margins become through  picture say?  The long-term                      Substantial improvements in
      February has routinely been  2022. I believe we do not un- pattern is persistent on the                 feeder cattle prices will take
                                                                                                              topping of the feedgrain and
      greater than 90 thousand  derstand the labor or operat- charts.  There are uptrends in
      head and some days pushing  ing or shipping realities.                place and resistance planes       oilseed markets.
      96 thousand. I anticipate the         However, certainly all is  are being broken as most live
      March Cattle on Feed report,  not good news and especially  cattle contracts push into life
      which shows February mar- for feeder cattle and calves.  of contract highs. But again,
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