WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Mon, 08 Feb 16 00:00:00 -0700 en hourly 1 Winter storm freezes most market activity https://wlj.net/article-14-winter-storm-freezes-most-market-activity.html Winter storm freezes most market activity
“Many roads are still closed in Nebraska, Iowa, South Dakota, and Minnesota, which has several beef and pork plants in the area either starting to kill late or cancelling first shift slaughters all together,” reported Troy Vetterkind of Vetterkind Cattle Brokerage last Thursday morning.


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United States Dollar gained considerable strength in 2015 https://wlj.net/article-14-united-states-dollar-gained-considerable-strength-in-2015.html United States Dollar gained considerable strength in 2015
The value of the U.S. dollar against other major currencies strengthened considerably in 2015, accelerating a trend that began in 2011. The agricultural tradeweighted exchange rate is a broad measure of the value of the dollar against 79 foreign currencies, weighted by their share of U.


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A look at how cattle and beef markets will be different in 2016 https://wlj.net/article-14-a-look-at-how-cattle-and-beef-markets-will-be-different-in-2016.html A look at how cattle and beef markets will be different in 2016
Cattle markets in 2015 transitioned from what 2014 was to more like what 2016 will be. Beef production will be up 3 to 4 percent annually from 2015 levels, which was the lowest since 1993. Increased beef production in 2016 is still a low number historically.


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Low market prices already affecting 2016 crop outlook https://wlj.net/article-14-low-market-prices-already-affecting-2016-crop-outlook.html Low market prices already affecting 2016 crop outlook
“We’ve been having good cotton yields lately, the last two years,” he said. “Some growers have managed to produce four bales per acre. With each bale weighing about 500 pounds, some have been meeting that 1-ton cotton goal that before the decline in boll weevils was just a dream here.


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Futures continue to be plagued by volatility https://wlj.net/article-14-futures-continue-to-be-plagued-by-volatility.html Futures continue to be plagued by volatility
People were less excited to buy cattle last week compared to the prior week. Whereas the prior week saw 90,000 head trade by Thursday, last week couldn’t even muster 4,000 head traded by Thursday. Cattle buyers were likely waiting for the release of the Cattle on Feed report to give the manic market some direction.


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What declining oil prices mean for cattle and beef https://wlj.net/article-14-what-declining-oil-prices-mean-for-cattle-and-beef.html What declining oil prices mean for cattle and beef
“Iran’s return to the oil market confirms what has been inevitable for six months since the P5+1 deal was signed in Vienna last July.


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Beef supplies, prices projected down in 2016 https://wlj.net/article-14-beef-supplies-prices-projected-down-in-2016.html Beef supplies, prices projected down in 2016
In the first World Agricultural Supply and Demand Estimate report of the year, forecasts for beef production in 2016 have fallen 75 million pounds (mp) from the previous report’s estimate to 24.67 billion pounds (bp).


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China’s meat imports surge, driven by rising demand https://wlj.net/article-14-china%25E2%2580%2599s-meat-imports-surge-driven-by-rising-demand.html China’s meat imports surge, driven by rising demand
As China enters a new phase of its economic development, its demand for higher-valued products like meat and dairy products is growing rapidly. China’s imports of meats during 2013-14 were more than double the volume imported during the early 2000s.


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Trade, outside economies played large role in crash https://wlj.net/article-14-trade-outside-economies-played-large-role-in-crash.html Trade, outside economies played large role in crash
Considering the magnitude and speed of the crash seen in cattle markets around the country at the end of 2015, much time and effort has been put into explaining why and how it happened. According to one market analyst, domestic supply shifts, outside economies, and trade all played important roles.


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Pivotal week sees falling futures and a rising cutout https://wlj.net/article-14-pivotal-week-sees-falling-futures-and-a-rising-cutout.html Pivotal week sees falling futures and a rising cutout
Last week was called pivotal for the cash cattle markets with numerous factors coming to bear on prices. The markets’ moving parts have all done a lot of significant moving in the last few weeks, so the direction of what is to come was a matter of much speculation.


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Measuring your cost of production and profit margin https://wlj.net/article-14-measuring-your-cost-of-production-and-profit-margin.html Measuring your cost of production and profit margin
The cost of producing one unit of output is extremely important information in any business. It determines your break-even price which, in turn, helps determine pricing decisions and profit margins. It also provides a baseline for comparison to other producers with the same or similar output so you can see how competitive.


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Beef exports rebounded in November, 95,799 mt https://wlj.net/article-14-beef-exports-rebounded-in-november-95799-mt.html Beef exports rebounded in November, 95,799 mt
November beef exports totaled 95,799 metric tons (mt), down 1 percent from a year ago but the largest volume since June, while export value fell 17 percent to $519.7 million. For January through November, beef exports were down 11 percent from a year ago in both volume (973,028 mt) and value ($5.


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Beef cutout posts fantastic gains https://wlj.net/article-14-beef-cutout-posts-fantastic-gains.html Beef cutout posts fantastic gains
Live cattle futures were trading fairly sideways last week after the prior week’s rally. But then Thursday trade, which opened in the U.S. following another day of the Chinese stock exchange trading locked down after mere minutes of opening, saw limit-down trade in almost all contracts on the board.


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Bull & Geding Sale Consignors https://wlj.net/article-14-bull-geding-sale-consignors.html Bull & Geding Sale Consignors
Herrmann, American Canyon, CA Schmidt Cattle Co.,.


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Cash cattle surge higher, bring beef and feeders up in rally too https://wlj.net/article-14-cash-cattle-surge-higher-bring-beef-and-feeders-up-in-rally-too.html Cash cattle surge higher, bring beef and feeders up in rally too
In the short, pre-New Year’s trade week, cash cattle traded early and sharply higher. By Wednesday afternoon, over 40,000 head had been confirmed sold on the negotiated market at $130-136 live (up $4-14 from the prior week) and $202-212 dressed (up $2-12).


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Beef trade: too much meat and not enough skin https://wlj.net/article-14-beef-trade-too-much-meat-and-not-enough-skin.html Beef trade: too much meat and not enough skin
Though cattle slaughter still favors herd growth—steers made up 54.3 percent of total cattle slaughtered in 2015, up 2.4 percent from the same time last year—beef in cold storage keeps climbing. According to the most recent Cold Storage report, the volume of beef in all warehouses stood at 510.


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Increased productivity primary source of growth in world ag output https://wlj.net/article-14-increased-productivity-primary-source-of-growth-in-world-ag-output.html Increased productivity primary source of growth in world ag output
The average annual rate of global agricultural output growth slowed in the 1970s and 1980s, then accelerated in the 1990s and 2000s. In the latest period estimated (2001-12), global output of total crop and livestock commodities was expanding at an average rate of 2.


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Trade issues topped the 2015 markets https://wlj.net/article-14-trade-issues-topped-the-2015-markets.html Trade issues topped the 2015 markets
The market year of 2015 was head-spinning in its difference from 2014. While this holds true generally across all sectors of the market, it was most poignantly felt by cattle feeders. The year 2014 was a record up year for feeder cattle prices, 2015 may well prove to be one of the worst down years for cattle feeders.


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A bullish feed report to close the year https://wlj.net/article-14-a-bullish-feed-report-to-close-the-year.html A bullish feed report to close the year
“The report is kind of friendly across the board with total on-feed numbers coming down,” noted Troy Vetterkind of Vetterkind Cattle Brokerage. He also pointed out that “There was one extra slaughter day this year compared to last year, helping to give the better marketing number.


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Beware confusing IRA distribution rules https://wlj.net/article-14-beware-confusing-ira-distribution-rules.html Beware confusing IRA distribution rules
Albert Einstein supposedly remarked that the hardest thing in the world to understand is the income tax. That may have been a quick quip back then. If he were around today and encountering the individual retirement account (IRA) distribution rules, he’d be dead serious.


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Market gifts came late https://wlj.net/article-14-market-gifts-came-late.html Market gifts came late
“Santa Claus does live,” proclaimed Andrew Gottschalk of Hedgers’ Edge on Christmas Eveeve. After weeks upon weeks of downward spiraling markets on almost all fronts, last week saw a turnaround in both futures and cash markets. That Christmas market miracle may well have happened.


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Where is the bottom to this down market? https://wlj.net/article-14-where-is-the-bottom-to-this-down-market.html Where is the bottom to this down market?
The markets continued lower last week, with the cash and futures markets of both live cattle and feeders, as well as wholesale beef, heading downward. By Thursday afternoon over 61,500 head had been confirmed sold on the negotiated market of the week. Live steers traded for $114-117, down from the prior week’s $115- 119.




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Cash cattle and feeders continue to fall https://wlj.net/article-14-cash-cattle-and-feeders-continue-to-fall.html Cash cattle and feeders continue to fall
It might be time to start praying for that Christmas miracle in the markets this year, because things are ugly and just keep getting worse. Cash cattle and feeders were down, futures for both live and feeders were down, and wholesale meat prices were the relative bright star at a weak steady.


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October meat exports show improvement; soften in Asia https://wlj.net/article-14-october-meat-exports-show-improvement-soften-in-asia.html October meat exports show improvement; soften in Asia
October beef exports rebounded to some degree from their low September totals, but were still down 14 percent from a year ago in volume at 94,524 metric tons (mt) and fell 26 percent (to $508.2 million) compared to the record-high value posted in October 2014 ($687.


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Tax Q and A: Questions on a charitable retirement https://wlj.net/article-14-tax-q-and-a-questions-on-a-charitable-retirement.html Tax Q and A: Questions on a charitable retirement
The cost is a variable, depending on the types of assets transferred and your attorney fees to draft the documents. The IRS has issued sample pre-approved CRT documents, which makes it easier for the attorney (see Rev. Proc. 2003- 54).


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Supply report projects declining beef trade deficit https://wlj.net/article-14-supply-report-projects-declining-beef-trade-deficit.html Supply report projects declining beef trade deficit
Due to the slower pace of fed cattle marketings seen in recent months, the estimated beef production for 2015 declined 50 million pounds (mp) to 23.73 billion pounds (bp). Reduced placements of light cattle late in 2015 are also expected to reduce the estimated 2016 production to 24.


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After a breather, futures plunge downwards again https://wlj.net/article-14-after-a-breather-futures-plunge-downwards-again.html After a breather, futures plunge downwards again
Cash cattle trade got underway early, though at disappointing prices, last week. By Thursday, over 80,000 head had been confirmed sold at $122-125 live and $189-198 dressed; these prices being at the low end of the priorweek’s range for live, and being both below and above the prior week’s range for dressed.


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Rural employment yet to recover to prerecession levels https://wlj.net/article-14-rural-employment-yet-to-recover-to-prerecession-levels.html Rural employment yet to recover to prerecession levels
In 2010, the first full year of the economic recovery, urban and rural employment levels grew at comparable rates, and rural areas experienced modest growth the following year. This was followed by two years of near-zero employment change before growth resumed in early 2014.


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Ag producers should do income tax planning before the year ends https://wlj.net/article-14-ag-producers-should-do-income-tax-planning-before-the-year-ends.html Ag producers should do income tax planning before the year ends
“In tax planning, it is best to start with year-to-date income and expenses and estimate them for the remainder of the year,” says Ron Haugen, North Dakota State University Extension Service Farm Economist. “Do not forget any income that was deferred to 2015 from a previous year.


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World beef trade: imports https://wlj.net/article-14-world-beef-trade-imports.html World beef trade: imports
The U.S. is the largest beef producing and consuming country and often the largest importer of beef. In the 26 years beginning in 1990, the U.S. has been the largest beef importing country 20 times. Australia and Canada are typically the top two sources of U.


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