Growth in demand for food, and by extension for agricultural imports, is particularly sensitive to growth in per capita incomes in developing countries, where relatively large shares of rising incomes are typically spent on increasing both the amount and diversity of foods consumed.
The job of markets—any market—is to determine what will be produced; how much will be produced; and what resources will be used to produce; all relative to the demand for the product. The cattle industry produces fed cattle ready for slaughter.
The cash fed cattle market was, like most of the cattle and beef markets, depressed last week. As of Thursday afternoon, almost 22,000 head had been confirmed sold. Cattle traded for $116-118 live and roughly $186 dressed, a $4 decline in all ranges compared to cash cattle the week before.
Based on simulations using farm-level survey data from USDA’s 2014 Agricultural Resource Management Survey (ARMS), about 3 percent of farm estates would have been required to file an estate tax return in 2015, while 0.8 percent of all farm estates would have owed any federal estate tax.
The report increased both area planted (94.1 million acres) and area harvested data (86.6 million acres). Even with a static yield estimate of 168 bushels per acre, this increase in expected harvested area brought up the projected 2016/2017 corn crop production to 14.
A first step in market planning for calves this fall is to stay on top of markets, both cash and futures. While the cash markets are important at telling you where the market has been and to compare market strength among various options, the futures market has traditionally been the best predictor of where the market has been expected to go.
“We want to encourage the sellers to have skin in the game, so to speak, but we also want to encourage consignment, so there’s a balance there. We’ve got both parties wanting to see this be successful so I think we’ll come to some good conclusions and something equitable for everyone to make the experience good.
By close of trade last Thursday, the cash fed cattle market had not even moved 8,000 head of cattle. Prices for live cattle ranged from $120-121 and dressed cattle went for $191. These prices were below the prior week’s $122-123 live and $194-200 dressed levels.
In the midst of a constantly changing set of short-term market forces, it is easy to overlook the enormous market challenges that are inherently part of cattle and beef markets. Many factors make the cattle and beef industry arguably the most complex set of markets known.
As we work into the first days of summer, now would be a good time to revisit your marketing plans. For those of you who don’t yet have a marketing plan, now may be a good opportunity to start putting one together. Every operation should develop and maintain a marketing plan.
Have you ever heard the phrase “A butterfly flaps its wings in Amazonian jungle and a storm ravages half of Europe,” or something similar? Such phrases are used to illustrate the butterfly effect. It is a concept within the mathematical field of study called “chaos theory.
By close of trade Thursday afternoon, some respectable—and relieving—cash fed trade had developed. Over 28,000 head had been confirmed sold for the week at prices of $120-123 live and $194-195 dressed. These prices were well above the prior week’s prices of $115-116 live and $186-190.
A wide variety of internal and external factors are impacting beef and cattle price levels and volatility. Beef production is at a seasonal peak in June with weekly beef production since late May estimated to be nearly 7 percent above year-ago levels.
The U.S. hides and skins industry accounts for nearly $3.4 billion in total economic output, according to a new economic impact analysis conducted by John Dunham and Associates for the North American Meat Institute (NAMI), an affiliate organization of the U.
The issue of market volatility, particularly in the U.S. beef market, was a point of great attention in the Rabobank report. Under the heading, “U.S. volatility needs to be resolved,” the report outlined four problems that are familiar to the U.S. cattle producer:.
“Last week 5-area average steer prices were $120.62, the lowest of 2016 and the lowest since the market bottomed in December,” he noted last Monday morning. “Last week’s cash price was the lowest for that particular calendar week since 2012 when prices averaged $119.
Last week saw a concerning multi-part collapse in the cattle markets. Cash fed cattle trade amounted to more than 20,000 head by close of trade on Thursday at prices significantly lower than those seen the week before. Live cattle traded for $118-122, $4-8 lower than the prior week, and dressed cattle went for $187-196, a whopping $9-23 lower.
The cash fed cattle market was slow to develop last week as it had been the week before. At the end of last Thursday, barely 3,500 head had been confirmed sold. Though these levels were too low to establish a price trend for the week, prices ranging from $128-132 live and $204-206 dressed were steady to a few dollars above the prior week’s prices.
I get this question about once a month: Mom is moving to assisted living, her house is being sold, and the attorney said we should see our tax adviser. If Mom owned and occupied the home as her principal residence for at least two of the five years preceding the sale, the first $250,000 of gain on the sale is tax-free in her 1040.