WLJ - Cattle and Beef Markets https://wlj.net/articles.sec-14-1-cattle-and-beef-markets.html Tue, 25 Jul 17 00:00:00 -0600 en hourly 1 Choice sees summer premium over Select https://wlj.net/article-14-choice-sees-summer-premium-over-select.html Choice sees summer premium over Select
Many Americans spend more of their time outdoors during the summer months, and some of that outdoor time is spent attending barbecues or grilling their meals at home. Beef is a popular grilling option for many, but not all grades of beef are equally suitable....]]>
Understanding the evolution of exports https://wlj.net/article-14-understanding-the-evolution-of-exports.html Understanding the evolution of exports
U.S. beef exports have varied in the quantity of exports and the mix of countries receiving U.S. beef over many years. The latest trade data for May shows total beef exports up 6.8 percent compared to one year ago with January through May total beef exports up 17....]]>
Markets unbothered by BSE https://wlj.net/article-14-markets-unbothered-by-bse.html Markets unbothered by BSE
The potential big market news last week was the Tuesday discovery of the U.S.’ fifth case of BSE. It barely made a ripple in the futures market. Jitters over what the Cattle on Feed and Cattle inventory reports might turn up were far more palpable, however....]]>
Various export tastes drive carcass value https://wlj.net/article-14-various-export-tastes-drive-carcass-value.html Various export tastes drive carcass value
In the U.S., it might be ribeye steak, hamburgers, or pot roast that is what’s for dinner. But at international dinner tables, it might be beef tongue for gyutan in Japan, tripe for pho in Vietnam, or now, U.S.-raised short ribs for braised beef in China....]]>
Pricey corn could help fix feeders https://wlj.net/article-14-pricey-corn-could-help-fix-feeders.html Pricey corn could help fix feeders
The most recent Crop Progress report, released last Monday, shows 30 percent of the monitored corn crop silking. This is above the previous five-year average of 27 percent for the week. It is additionally well above last year’s progress at only 19 percent.


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Cash cattle, futures surprise https://wlj.net/article-14-cash-cattle-futures-surprise.html Cash cattle, futures surprise
Last week gave the whole cattle market a bit of a shock. Usual market watchers, confident the cattle market was tucked in for a dog-days-of-summer nap, turned their attentions to monthly reports. So it was a surprise for everyone involved when both cash cattle and futures made tidy little gains.


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What the EU-Japan agreement means for U.S. beef https://wlj.net/article-14-what-the-eu-japan-agreement-means-for-us-beef.html What the EU-Japan agreement means for U.S. beef
It was announced during the first week of July that the European Union (EU) and Japan have agreed in principle to an Economic Partnership Agreement. The agreement will gradually lower import tariffs o...]]>
The evolution of U.S. beef trade - Part 1: Understanding imports https://wlj.net/article-14-the-evolution-of-us-beef-trade.html The evolution of U.S. beef trade - Part 1: Understanding imports
There is a growing recognition that international beef trade will play an increasingly important role in the U.S. beef industry in the coming years. Within the dynamics of global beef trade it is impo...]]>
Beef cattle operations receive over half of all Microloans https://wlj.net/article-14-beef-cattle-operations-receive-over-half-of-all-microloans.html Beef cattle operations receive over half of all Microloans
In January 2013, USDA’s Farm Service Agency (FSA) launched the Direct Farm Operating Microloan program to better serve the credit needs of small farms, beginning farmers, farmers from socially disadvantaged groups (women and minorities), and veterans....]]>
Cash cattle stumble after futures trip https://wlj.net/article-14-cash-cattle-stumble-after-futures-trip.html Cash cattle stumble after futures trip
It also violates the predictions, made early last week, that trade would be fully steady to up. Given that packers had a holiday-shortened week for this week’s full production schedule, analysts expected that the leverage would lie in the hands of cattle feeders.


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Key points to consider on federal tax reform https://wlj.net/article-14-key-points-to-consider-on-federal-tax-reform.html Key points to consider on federal tax reform
Whether the Republicans can accomplish federal tax reform is still an open question. If enactment does occur, it seems more likely the changes will be effective in 2018 rather than retroactively in 2017. As the process plays out in Congress, here are some points to consider if passage looks likely....]]>
Cattle markets slide into summer; more cattle on feed https://wlj.net/article-14-cattle-markets-slide-into-summer-more-cattle-on-feed.html Cattle markets slide into summer; more cattle on feed
With July 4 beef purchases complete, wholesale beef prices on June 26 had dropped sharply the previous 10 days. Beef and cattle markets have defied gravity by staying stronger longer than most expected this spring....]]>
Cattle futures make unexpected move https://wlj.net/article-14-cattle-futures-make-unexpected-move.html Cattle futures make unexpected move
When the tides change, they change quickly. In cash cattle, price power has shifted from cattle feeders to packers, and in beef prices, surprising resilience has given way to record-setting declines. And yet, the futures markets seemed coolly oblivious last week.


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What does trade with China mean for U.S. cattle producers? https://wlj.net/article-14-what-does-trade-with-china-mean-for-us-cattle-producers.html What does trade with China mean for U.S. cattle producers?
Despite gaining access to what will likely become one of the world’s largest importers of beef, the trade deal does come with its caveats. Any beef that is shipped to China from the U.S. must meet a few requirements. First, all beef must be less than 30 months of age....]]>
Markets move lower; cash fed slide continues https://wlj.net/article-14-markets-move-lower-cash-fed-slide-continues.html Markets move lower; cash fed slide continues

Cash fed cattle continued their slide last week with live trade at $121-123 and northern dressed trade between $193-195. It was a bad week on the futures market with losses booked every day. The news that JBS’ Five Rivers Cattle Feeders was up for sale appears to have spooked traders for a while.



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The summer slump starts early this year https://wlj.net/article-14-the-summer-slump-starts-early-this-year.html The summer slump starts early this year
“All hell broke loose in direct trade yesterday,” noted Andrew Gottschalk of Hedgers Edge last Thursday morning. The Fed Cattle Exchange started Wednesday’s trade off valiantly with prices of $136-137 for delivery of cattle up to two weeks out. Those prices were steady with the prior week’s trade....]]>
U.S. ships beef to Shanghai https://wlj.net/article-14-us-ships-beef-to-shanghai.html U.S. ships beef to Shanghai
The two much-anticipated events were met with a flurry of announcements of approval and praise from industry groups. Groups such as the National Cattlemen’s Beef Association, the U.S. Cattlemen’s Association, the North American Meat Institute, the U.S.


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Cash climbs while futures fumble https://wlj.net/article-14-cash-climbs-while-futures-fumble.html Cash climbs while futures fumble
While cash fed cattle and feeder cattle, and wholesale beef overwhelmingly continued their upward motion, futures stalled out last Tuesday with limitdown losses in feeder contracts. However, strong beef demand and good fundamentals in the cattle and beef complexes seem to be keeping things up.


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Beef and pork exports moderate in April https://wlj.net/article-14-beef-and-pork-exports-moderate-in-april.html Beef and pork exports moderate in April
Beef exports reached 99,786 metric tons (mt) in April, up 13 percent from a year ago, valued at $550.4 million, up 14 percent. For January through April, beef exports were up 14 percent in volume (392,001 mt) and 18 percent in value ($2.16 billion) compared to the same period last year....]]>
Lots of dynamics in global beef export markets https://wlj.net/article-14-lots-of-dynamics-in-global-beef-export-markets.html Lots of dynamics in global beef export markets
It’s a unique time in global beef markets with a wide range of issues providing challenges and opportunities among many of the major beef exporting countries. USDA-FAS (Foreign Agricultural Service) estimates published in April project the top five beef exporting countries in 2017, in order, as India, Brazil, Australia, the U....]]>
Ranch tour travels through Wyoming https://wlj.net/article-14-ranch-tour-travels-through-wyoming.html Ranch tour travels through Wyoming

Last week, the over six-decadeold tradition of the WLJ Tour was alive and well. Over 120 ranchers and WLJ readers joined us for the 2017 Big Horn Ranch Tour in Wyoming to check out a series of large, progressive ranches. All the ranches were different and as unique as the country they ran in, but all had one thing in common; they were big.




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Markets notably mixed https://wlj.net/article-14-markets-notably-mixed.html Markets notably mixed

Though mid-week cash prices fell to $129-133 live following the Fed Cattle Exchange, by Thursday, live prices increased slightly to $130-136. Dressed prices on Thursday were $206-210. Despite this minor intra-week recovery in the cash prices, they were generally steady with the prior week’s trade and down from recent week’s.



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Trim market takes off https://wlj.net/article-14-trim-market-takes-off.html Trim market takes off
On Oct. 12, 2016, 50 percent (chemical lean fresh) trim set its recent low of $31.62/cwt., roughly half of what prices were during the height of the “pink slime” controversy in 2012. Since then, the market gained impressively, setting a new record with a national weighted average of $203.


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Down markets are upon us https://wlj.net/article-14-down-markets-are-upon-us.html Down markets are upon us
“Look for choppy trade to continue, with rallies limited by a weaker cash trend and the expectation of a sharp decline in beef cutout values,” warned Andrew Gottschalk of Hedgers Edge last Tuesday.


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How will the 2017 budget impact ag? https://wlj.net/article-14-how-will-the-2017-budget-impact-ag.html How will the 2017 budget impact ag?
Compared to the 2016 appropriations bill, most line items dealing with agencies and programs important to agriculture and public lands were steady or slightly up. But there are a couple interesting trends in the new bill. Most notably, line items related to land acquisition by federal agencies were overwhelmingly down.


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Cattle futures drop after dizzying rally https://wlj.net/article-14-cattle-futures-drop-after-dizzying-rally.html Cattle futures drop after dizzying rally
Cash fed cattle had taken a hit last week. Over 77,000 head had been confirmed sold by Thursday at live prices of $135-140 down $4-12 compared to the prior week. Dressed prices were a different matter however. The roughly 26,000 head that sold by Wednesday saw dressed prices of $220-224, however, by close of trade Thursday, those prices.


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Cash-accounting rules https://wlj.net/article-14-cash-accounting-rules.html Cash-accounting rules
Congress has given some unique privileges in the tax code to farmers. The most important is undoubtedly the ability to use the cash method of accounting. Income is only taxed when converted to cash. All other businesses that deal in goods, rather than services, must use the accrual method....]]>
Beef exports remain strong; increases 41 percent by volume https://wlj.net/article-14-beef-exports-remain-strong-increases-41-percent-by-volume.html Beef exports remain strong; increases 41 percent by volume
March exports accounted for 12.5 percent of total beef production and just under 10 percent for muscle cuts only, each up slightly from last year. For the first quarter, the percentage of total beef production exported was down slightly from a year ago (12....]]>
Fewer cattle imports in March from Mexico, Canada https://wlj.net/article-14-fewer-cattle-imports-in-march-from-mexico-canada.html Fewer cattle imports in March from Mexico, Canada
For the first three months of the year total cattle imports from Mexico are up 24.3 percent while imports from Canada are down 18.5 percent leading to a combined year-to-date cattle import total up 5.6 percent compared to the same period one year ago. Total annual cattle imports from Mexico and Canada in 2016 were 1....]]>
S. Korean trade impacts U.S. beef https://wlj.net/article-14-s-korean-trade-impacts-us-beef.html S. Korean trade impacts U.S. beef
Last year, South Korea was the second-largest importer of U.S. beef by volume at 454.68 million pounds, representing almost 18 percent of total U.S. beef exported. Trade to South Korea was second only to Japan by volume and eclipsed the third-largest importer (Mexico) by a decent margin....]]>