Market Watch

Georgia's tobacco and pecan crops are on pace for a surprisingly good year, but above-normal temperatures have taken a toll on peanuts and cotton. Pecan trees are alternate-bearing, meaning they produce a full crop every other year; most trees in Georgia are on the same cycle and this was supposed to be an "off" year for pecan production, but Georgia farmers will likely produce 75-80 million pounds, double what has been produced in other off years. Extreme heat in July and early August hurt peanut plants' ability to set peanut pods. Yield is expected to be 3,300 pounds per acre, or 7 percent less than last year. [ University of Georgia Cooperative Extension ]

USDA released its August Cattle on Feed report last Friday, reporting its inventory estimates for feedyards with 1,000+ head capacities. Net placements of cattle on feed during July, at 1.706 million head, were down 6.3% compared to last year, marking the first month since February to see a reduction in placements relative to 2009. While July placements were still 1-2% higher than what the trade expected prior to the report’s release, it did confirm that the sharp increase in placements during May and June slowed last month. Part of this percentage decline in placements relative to a year ago is a function of Summer 2009 placements. Last year, May and June placements were down sharply and July placements were above the 5-year average. Thus, larger placements this May and June and smaller July placements would be expected just for average placements. Feedlot profitability and grass conditions have also driven this summer’s placement pattern. Good feedlot returns following the rally

A very solid June performance allowed U.S. pork and beef exports to finish the first half of 2010 with strong momentum. According to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF), pork exports of 164,000 metric tons (361.6 million pounds) were 24 percent higher than June 2009. Pork export value was $316.4 million, up 34 percent. June beef exports were 25 percent above year-ago volumes, totaling 96,578 metric tons (212.9 million pounds), while the value in June was up 37 percent to $377.6 million. For the first six months of the year, pork exports were 3 percent above their year-ago pace in terms of volume (951,803 metric tons or 2.1 billion pounds). But with much-improved pork prices, export value was nearly 10 percent higher at $2.35 billion. This is slightly higher than the value reached in the first half of 2008 ($2.32 billion), the year in which pork export value set an all-time record. Export value per head during the six-month period was mor