Over the last 50 years, food-at-home prices have, on average, risen 4 percent annually. However, year-to-year price changes have varied over time. High food price inflation in the 1970s—price increases as large as 16.4 and 14.
Cash prices continued their climb last week. By Thursday afternoon, over 23,000 head of cattle had been confirmed sold at prices ranging from $125- 137 live and $210-215 dressed. Though not nearly as rapid-paced a weekly sale progression, the prices were up considerably from the prior week’s prices of $125-132 live and $204-210 dressed.
The average cattle feeder wants to be rewarded for above-average beef quality, and many have turned to some type of value-based “grid” marketing to earn premiums. After selling a few pens on a packer grid, some feeders lament it’s less about quality and more about dressing percent, the whole-carcass yield of beef, including bones in those cuts.
A popular narrative on trade preached by president and coffee shop cowboy alike is that the U.S. comes out the loser at every turn. The story claims we charge nothing on incoming goods, yet are spurned by unfair tariffs everywhere we try to trade our wares.
“Things started on the electronic Fed Cattle Exchange auction where packers started buying cattle in Texas/Kansas for $125-126 but then packers in the north began gobbling up cattle in Nebraska for $129-131.50 live so the southern cattle finished up on the auction at $127-128.
Beef exports totaled 96,488 metric tons (mt), up 17 percent from a year ago, valued at $515.5 million— up 18 percent and the highest ever for the month of January. Exports accounted for 12.2 percent of total beef production and 9.5 percent for muscle cuts only—with both ratios being fairly steady with January 2016.
Smaller-sized feedlots did increase capacity adding 2,000 lots (locations) compared to 2015 and increasing the number of head marketed during 2016 by just over 200,000 head year-over-year. This relatively large increase in small feedlots is driven by cheap feed, but is unlikely going to be a long-term trend.
A good set of financial records are a must when considering economic decisions in your operation. Understanding how to pull the needed data out of those records and how to interpret them is key to providing you with usable information to make your decisions.
After the prior week’s impressive gains, last week saw cash fed cattle prices increase even more. By close of trade Thursday afternoon, almost 110,000 head had been confirmed sold at $125- 129.50 live and $200-204 dressed. This was up a few dollars for live cattle and steady for dressed cattle compared to the prior week.
The futures markets were interesting last week. On Monday, one couldn’t help but notice that expiring February live contract seemed to be high on the success of the cash markets. All the while, more deferred contracts appeared to be pointedly pessimistic about the future despite cash and demand signals.
“This gives us a good picture of how important it is to keep these markets open,” Ribera said. “When you look at it, over 509,000 jobs and almost $108 billion in economic impact is a lot of money and jobs, especially now that commodity prices are low and farmers are struggling to make a profit.
For several years, farmers have been using technology to measure yields, monitor plant growth, and adjust the application rates for seed, fertilizer and pesticides. These practices are accumulating massive amounts of data—also referred to as “big data.
Non-pregnant (aka “open”) cows are often considered a byproduct of cow/ calf operations. Usually, when open cows are identified at pregnancy diagnosis they are sorted directly into a separate pen, loaded that day (or as soon as the calves are weaned) and transported to a livestock marketing facility.
The aforementioned superstars are the top five U.S. beef and beef variety meat importers by value. Collectively, these five countries consumed 82.6 percent of the U.S.’ total beef exports by volume in 2016, valued at roughly $5 billion. But there were 118 other countries that also imported U.
The cash fed cattle markets were off to the races last week with continued optimism. The prior week’s $122-125 live and $194-196 dressed was handily bypassed by last week’s $124-127.50 live and $200-205 dressed prices. To top it off, by close of trade Thursday, over 130,500 head had been confirmed sold on the negotiated cash market.
Higher working capital means better financial health for the farm sector. USDA’s Economic Research Service (ERS) expects that working capital for the farm sector could contract to $48 billion by the end of 2017.
Bred cows vary in value according to a number of factors including age, quality, weight, stage of gestation, hide color, time of year and location. Research at Oklahoma State University (OSU) has examined 15 years of auction data in Oklahoma to determine the impact of these factors on commercial bred cow value.
Dr. Ian Sheldon—the Andersons Chair in Agricultural Marketing, Trade and Policy in the Department of Agricultural, Environmental, and Development Economics (AEDE)—said if Trump were to implement a 45 percent tariff against China and a 35 percent...
Outlaw said projections indicate 17 of the 23 feed grain and oilseed farms are projected to be in moderate or poor financial condition; nine of the 11 wheat farms are projected to be in moderate or poor financial condition; 11 of the 15 cotton farms...
By close of trade last Thursday, nearly 128,000 head had been confirmed sold last week and the prices were refreshing; live cattle trading for $124-125 and dressed cattle traded for $196. This is a far cry from the prior week’s $116-120 live and $187 dressed.