Weekly Outlook - Is the Cattle Market Too Cautious?

The beef industry was stung by two negative events in the past two months that have left market traders uncertain about their longer term impacts. For now, market participants are taking a cautious approach until consumers more clearly define if they will reduce beef consumption.

The issue over lean finely textured beef (LFTB) played badly for cattle producers in early March and the fourth BSE cow found in the U.S. was announced on April 24. Finished cattle prices were about $129 per live hundredweight in early March before these news events, but have since declined to about $120. The decline in cash cattle prices has not been as severe as the drop in live cattle futures. At the start of March, June 2012 live cattle futures settled near $128, but declined about $15 to $113 as of April 27. In a similar manner, the December 2012 live cattle futures have declined by about $12 per hundredweight since the first of March. <Read More>

Early Planted Corn Developing Slowly

Planting of the 2012 corn crop in Indiana got off to its earliest ever start. By April 8, an estimated 6 percent of the state's corn crop was already planted and that increased to 24% by the following week (USDA-NASS, 2012). The early rush to begin planting corn was fueled by the unusually warm late March temperatures, soil conditions that were favorable for field activities and.................................. memories of the near-record breaking delayed planting of the 2011 corn crop. So, how is that crop faring nearly a month after some of it was planted? <Read More>

May Home, Yard, and Garden Calendar

HOME (Indoor plants and activities)

Many indoor plants can be moved to shady locations outdoors but only after danger of frost is past. Plants will dry out more often outdoors, so keep a close eye on soil moisture. Sinking the pots in soil will help slow down moisture loss.

YARD (Lawns, woody ornamentals and fruits)

Prune early spring-flowering trees and shrubs after flowers fade.

Plant balled-and-burlapped or container nursery stock, and water thoroughly.

GARDEN (Vegetables, small fruits and flowers)

Plant frost-tender plants after danger of frost is past for your area. This includes warm-season vegetables, such as tomatoes, peppers, eggplant and vine crops, as well as most annual flowers and tender perennials, such as cannas, gladiolus, dahlias, tuberous begonias and caladiums.

Pinch chrysanthemums and annual flower plants to keep them compact and well branched. <Read More>

Crop Outlook is Favorable, but Mother Nature Rules

Chris Hurt, Purdue Extension Agricultural Economics Specialist

Mother Nature always gets the last word when it comes to determining crop yields across Indiana. Last year she was unkind as a wet spring caused planting delays and then heat and dryness in mid-summer caused yield losses. Yields for both corn and soybeans were nearly 10 percent below normal.

Farmers are anxious for the new growing season in 2012 and the weather is giving them an early start. A warm and relatively dry winter means the planting season has started early increasing prospects for a return to favorable yields. 

While crop production was down in 2011, prices were at record highs. This meant that revenues for Indiana's major crops of corn, soybeans, and wheat reached a record high level of about $8.3 billion. 

A return to more normal crop production in 2012 could also bring lower prices, especially for corn. Increased production at lower prices means that total revenues would not change very much from the $8.3 billion from the 2011 crop.

However, what will change this year are higher production costs. Purdue University estimates suggest that costs of producing these crops will increase by 15 to 20 percent in 2012 compared to last year. Higher costs are led by fertilizer, fuel, and cash rents. These elevated costs mean the net returns or profits from Indiana cropland are expected to drop from the record levels achieved in the past two years. 

While a decline in returns is never welcomed, the decline is coming from record high levels. This means that crop incomes are expected to decline in 2012, but will still be strong relative to average incomes over the past decade. 

While prospects are favorable this spring, Mother Nature and market prices will ultimately determine the financial success of Indiana's 2012 crops.