ASF and Biosecurity
By Tyler McCoy, Location Manager, Montrose
African Swine Fever (ASF) is spreading like a wild fire and the USDA is trying to take every precaution that they can to keep it out of North America. ASF has spread throughout all of Europe along with the southern parts of Africa. As a vaccine is not available for ASF, the industry is relying on heightened biosecurity, rapid diagnosis, complete isolation, and elimination of infected pigs and contaminated materials.
The United States, Canada, and Mexico are working together in their efforts to prevent the entry of ASF into North America. The USDA is reaching out to the U.S. Customs & Border Protection to inform those on the front lines which countries pose a concern and the agencies are training their teams on different techniques and protocols that are being put in place to guard the United States border.

So much effort is being put into prevention as an outbreak would be catastrophic to the economy. Economists estimate that an ASF outbreak would cost the domestic pork industry $4 billion a year and would cause pork exports to come to a screeching halt and those exports account for nearly one-fourth of the total domestic pork production. Not to mention the affect it would have on the grain markets due to less domestic use. If you have any questions about CFC’s biosecurity or what you can do as a producer, I would be happy to help.
Tools for Success
By Kayla McMackin, Grain Originator
Amongst this week’s highlights of raising tariffs and retaliation threats from the US vs. China trade war, the markets are preparing for the WASDE report on Friday, May 10th. A bearish report is expected from the USDA, as we see 2019/2020 forecasts for the first time. This coupled with the past weekend’s comments on trade, and reductions in demand for both corn and beans, have led to a decline in corn and soybean futures.
Wet conditions continue across our trade area and the corn belt alike, pushing planting back, yet we have failed to see an improvement in corn futures. It is likely that a weather driven improvement may not surface until we near the end of the month or move deeper into June, when the reality of how much corn was actually planted starts to sink in. As of Thursday, May 9th, soybeans were at their lowest levels since 2008. The balance sheet for old crop soybeans has remained largely focused around exports. With a trade deal with China becoming further away, the market has adjusted for larger stocks once more. Given all these market conditions, we may be able to see a recovery in corn, but the future of soybeans is beginning to look even more bleak.

Though the markets and weather have failed to cooperate with us, there are still different marketing tools that can help you set yourself up for success. Work with your CFC originator to find the best strategies for your operation and make the most of what the market is willing to give you. 

Have a safe planting season!