Basis is the difference in the price of a commodity in a particular cash market and the underlying futures market. As such, basis varies across geographic areas according to local supply and demand factors. Lower supply or higher demand for a commodity in a local cash market relative to the overall price level represented by the futures market is reflected in higher (i.e., stronger, or more positive) basis values. Conversely, higher supply or lower demand results in lower (i.e., weaker, or more negative) basis values. The past several weeks have resulted in favorable basis changes for cattle feeders, despite price levels generally becoming less favorable.

In the monthly report of World Agricultural Supply and Demand Estimates (WASDE), the USDA’s World Agricultural Outlook Board (WAOB) reduced the forecast of U.S. planted and harvested acreage of corn and rice. Forecasts for the other major crops were not changed from the forecasts in the March Prospective Plantings report.

U.S. beef exports slowed slightly in April when compared to the all-time record highs of the previous month, but still performed well above last year’s pace. April beef exports totaled 103,213 metric tons valued at $429.7 million – increases of 25 percent and 38 percent, respectively, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Temple Grandin will be the keynote speaker at the Texas A&M Beef Cattle Short Course, sponsored by Texas AgriLife Extension Service, Aug. 1-3 in College Station, Texas.

A two-year study by a Texas AgriLife Research team in Amarillo has helped bring a new product to market that could allow the cattle feeding industry to realize efficiencies in mills and more weight on cattle, according to Jim MacDonald.

Let's take a look at what has happened to box beef prices, fed cattle prices, feeder cattle prices and corn prices over the last year. I will start with USDA Choice box beef prices. In June of 2010, the price averaged $157 per cwt. and increased to $168 by January 2011. In April of this year, the price increased to $188 and on June 1, 2011 the price had decreased to $178 per cwt.

Mark Sebranek and Jerry Jackson of Irsik & Doll Feed Yard, Garden City, Kansas, discuss how ranchers can manage their cattle to improve final quality grade. This video news is provided by Certified Angus Beef and the American Angus Association. Visit www.CABpartners.com or www.angus.org for more information.

Buying pipe fencing isn’t easy these days. Any Internet search for fencing returns tens of thousands of hits – most of them claim they have the strongest, longest-lasting and cheapest pipe in the nation.

Demand for both beef and pork increased noticeably through the first quarter of this year according to demand indexes calculated by the Livestock Marketing Information Center. The first quarter demand index for beef worked out to 79 in 2011 compared with 74 in 2010.Q1. Similarly, the pork demand index increased from 76 to 85 from 2010.Q1 to 2011.Q1. Improving domestic demand and strong exports have helped push retail beef and pork prices to historic highs. In fact, in April both all fresh beef retail and pork retail prices reported by USDA Economic Research Service hit new record levels: 445.3 cents/pound for beef and 337.7 cents/pound for pork.