MARKET NEWS HIGHLIGHTS
Janary 15, 2020
Foods announced it will open a new ground beef facility in Garden
City, Kansas. Empirical Foods is the former Beef Products, Inc. and
is based in Dakota Dunes, South Dakota. The new facility plans to
supplement the company's existing production in South Sioux City,
Nebraska. When fully operational the Garden City plant will more
than double Empirical's ground beef production and employ around 300
employees. The company plans to break ground on the new operation
during the first quarter of 2020, and is expected to be finished
between 2022 and 2023.
Dan Thomson has been named the new chair of the Department of Animal
Science at Iowa State. He has been serving as the Jones Professor
of Production Medicine and Epidemiology at KSU, and founded the Beef
Cattle Institute in Kansas State's College of Veterinary Medicine.
He has been a KSU facility member for 15 years.
Dairy Co. has filed for bankruptcy protection. Borden produces
nearly 500 million gallons of milk each year and employs 3,300
people at 12 plants across the US. This is the second major US
dairy to file for bankruptcy in the past two months. Dean Foods,
the nation's largest milk producer, filed for bankruptcy protection
last November. Both dairies are based in Dallas. The two companies
controlled about 13.5% of US milk sales last year.
CFTC approval, the CME will increase the initial spot month spec
position limit from 450 contracts to 600 for live cattle futures
effective Monday, March 2nd
and commencing with the April 2020 contract. The second and third
spot month limits of 300 and 200 contracts will remain unchanged.
North America, LLC, ended its 13-year ownership interest in
Southwest Iowa Renewable Energy, LLC. SIRE operates an ethanol plant
in Council Bluffs that can produce 140 million gallons per year.
Bunge will continue to purchase all of the ethanol produced by SIRE,
and will continue to lease rail cars to them under existing lease
Energy filed an appeal of EPA's rejection of its 2018 request for a
small refinery waiver. The EPA said it rejected the petition
because the refineries no longer meet EPA's definition of a small
refinery, which produces 75,000 gallons per day or less. Suncor
previously received waivers for what were two small refineries, one
that produced nearly 33,000 gpd and another at 67,000 gpd. The
refineries were among the original facilities to receive waivers in
2006. Since then, according to the EPA letter, Suncor has modified
the refineries to operate as a single facility.
USDA Winter Wheat Seedings report showed a total of 30.804 million
acres of winter wheat seeded, down 355,000 acres from last year or
1%. Kansas winter wheat acres were reported at 6.90 million acres,
the same as the year before. Oklahoma acres were also unchanged at
4.20 million acres, while Texas acres increased 400,000 acres to
4.90 million. This is the smallest total winter wheat acreage in
over 110 years.
Kansas corn production was reported at 800.66 million bushels on
6.02 million harvested acres and an average yield of 133 bushels per
acre. The Kansas soybean crop was pegged at 186.335 million bushels
on an average yield of 41.5 bushels per acre. Last year's yields
(2018) were 129 for corn and 43 for soybeans.
Nebraska final corn production came in at 1.7854 billion bushels on a 182 bushel yield (192 the year before). Soybean production in Nebraska was 283.14 million bushels on a yield of 58.5 bushels per acre. Missouri corn production was estimated at 463.45 million bushels on a 155 yield (140 in 2018) and Missouri soybean production was finalized at 230.46 million bushels on a 46 bushel per acre average (44.5 in 2018).