WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Mon, 30 May 16 00:00:00 -0600 en hourly 1 Trading fed cattle in the electronic age https://wlj.net/article-14-trading-fed-cattle-in-the-electronic-age.html Trading fed cattle in the electronic age
There was no sound—no striking of the gavel or the energized cadence of an auctioneer’s chant— just the remote clicking of computer mice as packers bid on the first electronic fed cattle auction. In 15 short minutes, almost 2,000 head of cattle had sold.


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Cattle, beef markets trip over Cattle on Feed report - Cattle, beef markets trip over Cattle on Feed report https://wlj.net/article-14-cattle-beef-markets-trip-over-cattle-on-feed-report.html Cattle, beef markets trip over Cattle on Feed report - Cattle, beef markets trip over Cattle on Feed report
All of the markets took a bit of a beating which came mostly from the surprising Cattle on Feed report that was released May 20. Every portion of the beef and cattle markets declined, from futures, to cash cattle, to the cutout, and all this on the eve of one of the traditionally biggest beef holidays of the year.


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Agriculture remains better positioned for future https://wlj.net/article-14-agriculture-remains-better-positioned-for-future.html Agriculture remains better positioned for future
There are a few agricultural producers still active who remember the 1980s and the difficult times that persisted throughout much of the decade. For those unfamiliar with the stress many producers experienced during that time, a reflection back provides a comparison and may provide insight into what to expect for the next few years.


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Cattle on feed and forage conditions https://wlj.net/article-14-cattle-on-feed-and-forage-conditions.html Cattle on feed and forage conditions
Feedlot inventories on May 1 were 10.78 million head in feedlots over 1,000 head capacity. This is up 1.3 percent from May 2015. Placements in April were 107.5 percent of year-ago levels; the third straight monthly increase in feedlot placements. April marketings were 101.


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Did CME's cattle futures fixes solve volatility? https://wlj.net/article-14-did-cmes-cattle-futures-fixes-solve-volatility.html Did CME's cattle futures fixes solve volatility?
Four months ago, the top brass of the Chicago Mercantile Exchange (CME) Group addressed a full house at the annual Cattle Industry Convention and National Cattlemen’s Beef Association trade show. They tackled the topic of volatility in the cattle futures and announced changes to be applied to those markets to try to rein them in.


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Discounts in June contract persist https://wlj.net/article-14-discounts-in-june-contract-persist.html Discounts in June contract persist
The cash fed cattle market disappointed last week. While beef prices were moving up counter-intuitively with increased beef production, cash cattle prices declined. Compared to the prior week’s $131-135 live and $205-210 dressed, by Thursday afternoon last week over 37,000 head had been confirmed sold at $129-133 live and $202-206 dressed.


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USMEF applauds Taiwan’s reopening to U.S. lamb https://wlj.net/article-14-usmef-applauds-taiwan%25E2%2580%2599s-reopening-to-us-lamb.html USMEF applauds Taiwan’s reopening to U.S. lamb
“This is the culmination of many months of work by U.S. government officials, as well as the U.S. meat industry, and we are very excited to resume exporting lamb to Taiwan,” said Dr. Dennis Stiffler, Chief Executive Officer of Mountain States Rosen, a producer-owned and operated processor and distributor of lamb and veal products.


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A rocky upward climb for markets https://wlj.net/article-14-a-rocky-upward-climb-for-markets.html A rocky upward climb for markets
Almost all of last week’s cash fed cattle trade occurred on Thursday, with over 74,000 head confirmed sold by end of day. Prices ranged from $129.50-132 live and $200-210 dressed, both far higher than the prior week’s prices of $126-130 live and $196-200 dressed.


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Farmers use variety of glyphosate-resistance management practices for weed control https://wlj.net/article-14-farmers-use-variety-of-glyphosate-resistance-management-practices-for-weed-control.html Farmers use variety of glyphosate-resistance management practices for weed control
Over the course of the last two decades, U.S. corn and soybean farmers have increased their use of glyphosate (the active ingredient in herbicide products such as Roundup) and decreased their use of herbicide products containing other active ingredients.


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YTD beef production up https://wlj.net/article-14-ytd-beef-production-up.html YTD beef production up
Beef production for the year to date in 2016 is up 3.0 percent year-over-year. This increase is faster than expected as earlier expectations were for more of the annual increase in beef production to occur in the second half of the year.


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Summer lows in spring? https://wlj.net/article-14-summer-lows-in-spring.html Summer lows in spring?
There’s always a silver lining. When it comes to markets, the hopeful element comes from the fact that down markets have the ability to go up. Market analysts last week were cautiously optimistic that the cattle and beef markets either have or were in the process of setting a market low for the season.


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April beef production outpaces May demand https://wlj.net/article-14-april-beef-production-outpaces-may-demand.html April beef production outpaces May demand
“Cattle slaughter [year-to-date] is up 1.3 percent or 125,000 head above the prior year, while beef production is up 3.0 percent,” Andrew Gottschalk of Hedgers Edge last week. “Beef production [during the week of April 25-30] was 6.3 percent above year-ago levels.


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Profit pressure presents a barrier to soil and water conservation https://wlj.net/article-14-profit-pressure-presents-a-barrier-to-soil-and-water-conservation.html Profit pressure presents a barrier to soil and water conservation
Despite attempts to reduce agriculture’s impact on soil and water quality that date back to the 1930s, soil erosion and water quality degradation are still widespread in Iowa.


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Enhancing economic profit and soil health via integrated crop livestock systems https://wlj.net/article-14-enhancing-economic-profit-and-soil-health-via-integrated-crop-livestock-systems.html Enhancing economic profit and soil health via integrated crop livestock systems
Results from a South Dakota grazing study funded through a Natural Resources Conservation Service Conservation Innovation Grant showed that shortterm grazing did not have a negative impact on soil properties.


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Beef production outpaces demand https://wlj.net/article-14-beef-production-outpaces-demand.html Beef production outpaces demand
With market reins in hand, packers held off buying cattle last week until a bit on Thursday and a bit on Friday. At least for Thursday, this strategy worked out for them as it allowed them to buy cattle cheaper after near limit-down declines in the live futures market.


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The importance of depreciation when keeping records https://wlj.net/article-14-the-importance-of-depreciation-when-keeping-records.html The importance of depreciation when keeping records
“Careful consideration of how to report tax depreciation helps producers comply with IRS regulations and can result in a reduction of income taxes paid,” said Shannon Sand, South Dakota State University (SDSU) Extension Livestock Business Management Field Specialist.


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U.S. meat and poultry exports are projected to rise https://wlj.net/article-14-us-meat-and-poultry-exports-are-projected-to-rise.html U.S. meat and poultry exports are projected to rise
A strengthening U.S. dollar coupled with poultry trade restrictions related to highly pathogenic avian influenza (HPAI) led to a reduction in U.S. meat and poultry exports in 2015. However, U.S. red meat and poultry exports are expected to rise over the next decade as steady global economic growth supports demand for high-quality animal proteins.


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More cattle on feed and less beef in cold storage https://wlj.net/article-14-more-cattle-on-feed-and-less-beef-in-cold-storage.html More cattle on feed and less beef in cold storage
The latest Cattle on Feed (COF) report showed feedlot inventories (among feedlots with 1,000 head or more capacity) on April 1 of 10.853 million head, 100.5 percent of year-ago levels. March feedlot marketings were 107 percent of last year and placements were 104.


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Futures fall to limit down on Monday https://wlj.net/article-14-futures-fall-to-limit-down-on-monday.html Futures fall to limit down on Monday
Losses on both CME live and feeder cattle futures early last week has made buyers extremely cautious. Last Monday saw limit down trading in the live cattle futures when the April prices fell by the CME daily limit of 3 cents to $1.28 per pound. Cattle futures also saw a downturn, falling 3 cents to $1.


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Cutout values surge, markets left behind https://wlj.net/article-14-cutout-values-surge-markets-left-behind.html Cutout values surge, markets left behind
The cash fed cattle market was slow last week and what had come in was mixed. By close of trade on Thursday, only 15,000 head had been confirmed sold. Though that is sufficient for a weekly trend, it is a far sight lower than the prior week’s 50,000+ head that had been confirmed sold by that time.


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Cash cattle sideways while futures recover https://wlj.net/article-14-cash-cattle-sideways-while-futures-recover.html Cash cattle sideways while futures recover
The cash fed cattle trade got underway in the rarely-seen usual fashion last week, with over 50,000 head having been confirmed sold by close of trade on Thursday. Prices paid for cash cattle were steady with the prior week at $132-135 (up $1 on the upper end of the range) for live and $213-215 dressed.


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U.S. meat exports sluggish in February https://wlj.net/article-14-us-meat-exports-sluggish-in-february.html U.S. meat exports sluggish in February
February beef exports totaled 83,203 metric tons (mt), up slightly from last year, while value dropped 18 percent to $437 million. January-February exports were up 2 percent in volume (165,504 mt) from a year ago but fell 16 percent in value ($875.1 million).


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Mexican beef exports continue with rapid growth https://wlj.net/article-14-mexican-beef-exports-continue-with-rapid-growth.html Mexican beef exports continue with rapid growth
Mexican beef exports have grown rapidly in recent years. Total beef exports began increasing in 2009 and have increased from about 28,000 metric tons in 2008 to over 161,000 metric tons in 2015, a nearly six-fold increase. Currently, Mexico is the 10th largest beef exporting country, exceeding Argentina for the first time in 2015.


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Are you a real farmer? The answer has consequences https://wlj.net/article-14-are-you-a-real-farmer-the-answer-has-consequences.html Are you a real farmer? The answer has consequences
A key definition in the tax law involves growing. An agricultural operation that’s conducting crop or animal production is classified as a farmer. Activities that only provide services to an agricultural producer aren’t farming.


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Prospective Plantings: 2016 Corn acreage up https://wlj.net/article-14-prospective-plantings-2016-corn-acreage-up.html Prospective Plantings: 2016 Corn acreage up
Corn futures reacted negatively to the larger-thanexpected acreage projections in the report with the entire board seeing red. By Thursday’s settle, the nearterm corn contract stood at 351'4, down 15'4 in just Thursday’s trade. The more deferred contracts of December 2016 and March 2017 were at 368'6 (down 15'2) and 378'2 (down 14'4) respectively....]]>
Rabobank: Beef trade outlook changing https://wlj.net/article-14-rabobank-beef-trade-outlook-changing.html Rabobank: Beef trade outlook changing
Last week saw the release of Rabobank’s first quarter beef report. The focus was on international beef trade. South American beef countries, China, Oceania, and North America all are or will see changes in their trade-related fundamentals in 2016, according to the report....]]>
Price risk management and LRP Insurance https://wlj.net/article-14-price-risk-management-and-lrp-insurance.html Price risk management and LRP Insurance
Every operation should develop and maintain a marketing plan. The plans can be very simple to very complex, depending on your situation and level of detail. These plans need to be flexible and updated as things change. Price risk management is one piece of this marketing plan that we will discuss in further detail....]]>
Exports of red meat expected to increase in 2016 https://wlj.net/article-14-exports-of-red-meat-expected-to-increase-in-2016.html Exports of red meat expected to increase in 2016
Red meat and poultry exports as a share of production are down from the average over the previous five years, reflecting the combination of a strengthening dollar, slowing global economy, and restrictions on poultry exports put in place as a result of the U....]]>
U.S. farm income forecast to fall in 2016 https://wlj.net/article-14-us-farm-income-forecast-to-fall-in-2016.html U.S. farm income forecast to fall in 2016
As of Feb. 9, 2016, U.S. net farm income is forecast to fall to $54.8 billion in 2016 after recently peaking in 2013, due largely to declines in commodity prices. In inflation-adjusted terms, since 1970 only five years have registered lower net farm income....]]>
Futures swing wildly; up and down the limit https://wlj.net/article-14-futures-swing-wildly-up-and-down-the-limit.html Futures swing wildly; up and down the limit
Cash fed cattle trade got over and done with by the end of day on Thursday, but perhaps not to the tune cattle feeders would have hoped for. With more than 42,000 head confirmed sold by the end of day last Thursday, prices slipped up to $6 at $131-135 for live cattle, and $214-215 for dressed cattle, a $1-4 decline.


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