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US corn crop forecasts inaccurate

A report in one of the leading daily national newspapers regarding orn prices in the United States caught my attention recently.

The United States apparently have a problem with the forecasting carried out by their Department of Agriculture (USDA) with regards to their projections on the size, quality, price, etc of the crop.

These complaints seem to have a similar ring to the worries experienced by Australian farmers who have to budget in a climate of substantial price swings caused on some occasions by incorrect information regarding size of the crop, quality, size of world and local stocks on hadn all of which contribute to the angst suffered by our grain producers.

Back to the United States which grew 38 per cent of the world's corn crop last year estimated at $US67 billion. This country has a rapidly growing ethanol industry which adds to the cost if you are an end user such as running a feedlot.

One American dairy farmer saw his feed bill rise by $200,000 after the USDA incorrectly estimated the size of the corn stocks on hand.

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Competitio n in the physical cattle market has increased with the recent run of wet weather freshening pastures and this combined with the high prices being received for the finished end product has seen restockers purchase 55 per cent of all yearlings offered in saleyards covered by MLA reporters.

Feeder buyers are racing to place more cattle on feed before year's end and this is increasing the pressure on the market.

Processors in recent days have increased OTH prices by as much as 15c/kg for some purchasers, but still give the impression of playing catch-up as saleyard prices continue to surge ahead.

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Received a fax from Keiran Potter (0428 115 574) stud livestock specialist for Landmark based here in Dubbo advising the writer about a forthcoming sale of Dorpers and White Dorper stud sheep which should create great interest within the industry.

The Burnett-Smith family which has been at the forefront of the Dorper and White Dorper breed will disperse their entire stud flock.

The dispersal will initially be conducted under a tender process which will close on January 6 2012. If the stud is not sold at this stage, Landmark will conduct an auction on February 8 2012 at Inverell Showground.

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STOCK TALK with Bill Tatt
Long-time respected stock and station agent Bill Tatt gives up-to-date news on what is happening in the world of livestock. 0429 843 803

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