WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Wed, 24 Aug 16 00:00:00 -0600 en hourly 1 Slight pullbacks in live cash, futures markets https://wlj.net/article-14-slight-pullbacks-in-live-cash-futures-markets.html Slight pullbacks in live cash, futures markets

Reality disappointed early-week projections of a strong-steady cash market last week. By close of trade last Thursday, over 78,000 head had been confirmed sold at prices ranging from $116-118.50 live and $185-187 dressed. These levels were down from the prior week’s $117-120 live and $186-188 dressed ranges



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Markets see pull back in cash fed cattle https://wlj.net/article-14-markets-see-pull-back-in-cash-fed-cattle.html Markets see pull back in cash fed cattle
There was a bit of a lull in the markets last week, almost as though the relative revelry of the markets in the last few weeks took a slight breather to look around. Announced changes to the futures market and the anticipation of the August World Agricultural Supply and Demand Estimates report likely clouded the market’s upward momentum.


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First-half volumes ahead of last year https://wlj.net/article-14-first-half-volumes-ahead-of-last-year.html First-half volumes ahead of last year
U.S. red meat exports ended the first half of 2016 on a positive note, as June export values for both beef and pork were the highest of the year. June also marked the second consecutive month of solid year-over-year volume growth, according to statistics released by USDA and compiled by the U.


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Use of crop insurance continues to grow https://wlj.net/article-14-use-of-crop-insurance-continues-to-grow.html Use of crop insurance continues to grow
Passage of the Federal Crop Insurance Reform Act in 1994 led to a spike in the use of crop insurance, reflecting the introduction of low-coverage, fully subsidized Catastrophic Risk Protection Endorsement (CAT) insurance and a temporary requirement that producers obtain insurance coverage to be eligible for other commodity support programs.


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Monetary policy and exchange rates https://wlj.net/article-14-monetary-policy-and-exchange-rates.html Monetary policy and exchange rates
For example, an appreciation of the U.S. dollar (stronger dollar) will increase the price of U.S. exports of currently produced agricultural goods. A depreciation of the U.S. dollar (weaker dollar) will decrease the price of U.S. exports in world markets..


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Remedies to calm those college tuition blues https://wlj.net/article-14-remedies-to-calm-those-college-tuition-blues.html Remedies to calm those college tuition blues
If the student is working on the farm for some part of the year, compensation can be a great tool. The student’s salary isn’t subject to income tax until it exceeds the standard deduction ($6,300 for 2016). Normally, there will be the 15....]]>
Few farms are affected by 2014 Farm Act eligibility income cap https://wlj.net/article-14-few-farms-are-affected-by-2014-farm-act-eligibility-income-cap.html Few farms are affected by 2014 Farm Act eligibility income cap
The 2014 Farm Act revised the maximum income limitations (the income cap) that determine eligibility for most commodity and conservation programs and payments by replacing the separate limits on farm and nonfarm income specified in the 2008 Farm Act with a single total adjusted gross income cap of $900,000....]]>
Yes, it seems we are past the seasonal low https://wlj.net/article-14-yes-it-seems-we-are-past-the-seasonal-low.html Yes, it seems we are past the seasonal low
By the close of trade last Thursday, over 14,000 head had been confirmed sold. This was somewhat light, but still likely sufficient to set the trend for the week. Live cattle traded at $118, above the prior week’s $114-117 range, and dressed cattle sold for $187-188, the upper end of the prior week’s dressed price range.


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Managing beef cow margins: grazing cost https://wlj.net/article-14-managing-beef-cow-margins-grazing-cost.html Managing beef cow margins: grazing cost
the past few months and are expected to remain lower for the next couple of years. Producers must focus more attention on cost management to help maintain net returns in this environment.


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Cattle producers learn how to deal with smaller profit margins https://wlj.net/article-14-cattle-producers-learn-how-to-deal-with-smaller-profit-margins.html Cattle producers learn how to deal with smaller profit margins
“We’ve seen quite a slide, 40 percent, which is quite challenging,” said Gerald Sullivan, who co-owns Santa Rosa Ranch in Navasota and Crockett with his daughter, Kelley Sullivan. “Not everything is bad, not everything is good. We’re also seeing an uptick in per capita consumption of beef.


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Cattle, beef markets may have seen bottom https://wlj.net/article-14-cattle-beef-markets-may-have-seen-bottom.html Cattle, beef markets may have seen bottom
Did we hit bottom or not? That was the question hanging over most of the cattle and beef markets last week. The prior week saw some spectacularly bad prices for cash fed cattle, the beef cutout, and new lows in the cattle futures markets. Last week was the first opportunity the markets had to see if those lows were the lows of the season or not.



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Corn production, use expected to reach record high in 2016 https://wlj.net/article-14-corn-production-use-expected-to-reach-record-high-in-2016.html Corn production, use expected to reach record high in 2016
The USDA Economic Research Service report, Feed Outlook, for July 2016 shows U.S. corn area in 2016/17 is estimated at 94.1 million acres, of which 86.6 million is expected to be harvested for grain, up 5.9 million from last year. With a national average yield forecast of 168 bushels, corn production this year would reach 14....]]>
Start thinking about marketing calves; tips for calculations https://wlj.net/article-14-start-thinking-about-marketing-calves-tips-for-calculations.html Start thinking about marketing calves; tips for calculations
Now is the time to start thinking about marketing opportunities for calves this fall. While prices are well below what was received last year at this time, considerations can be given to the seasonal aspects of feeder cattle prices and the opportunities that may exist to utilize risk management tools....]]>
USDA releases Cattle on Feed, Cold Storage reports but no mid-year cattle inventory https://wlj.net/article-14-usda-releases-cattle-on-feed-cold-storage-reports-but-no-mid-year-cattle-inventory.html USDA releases Cattle on Feed, Cold Storage reports but no mid-year cattle inventory
The July Cattle on Feed report confirms that the feedlot situation continues to improve in 2016. Feedlot placements in June were up year-over-year but less than expected at 103 percent of last year. June marketings were as expected at 109 percent of last year; the largest June marketing level since 2012....]]>
Farm debt trends vary by type of debt, lender https://wlj.net/article-14-farm-debt-trends-vary-by-type-of-debt-lender.html Farm debt trends vary by type of debt, lender
Following a period of decline due to the farm financial crisis in the 1980s, farm sector debt has trended upward since the mid-1990s but at a slower pace than growth in the 1970s....]]>
Summer heat melts prices in cattle, beef markets https://wlj.net/article-14-summer-heat-melts-prices-in-cattle-beef-markets.html Summer heat melts prices in cattle, beef markets
Last week saw a massive heat wave blanket the center of the country. Early-week weather reports predicted heat indices—the combination of heat and humidity—to reach upwards of 120 degrees.


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Growth in U.S. ag exports credited to developing world https://wlj.net/article-14-growth-in-us-ag-exports-credited-to-developing-world.html Growth in U.S. ag exports credited to developing world
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.


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Cash cattle and cutouts continue downward https://wlj.net/article-14-cash-cattle-and-cutouts-continue-downward.html Cash cattle and cutouts continue downward
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.


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Most U.S. farm estates exempt from federal estate tax in 2015 https://wlj.net/article-14-most-us-farm-estates-exempt-from-federal-estate-tax-in-2015.html Most U.S. farm estates exempt from federal estate tax in 2015
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.


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These days, the world makes the money go ’round https://wlj.net/article-14-these-days-the-world-makes-the-money-go-%25E2%2580%2599round.html These days, the world makes the money go ’round
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.


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Thinking ahead to fall calf marketing https://wlj.net/article-14-thinking-ahead-to-fall-calf-marketing.html Thinking ahead to fall calf marketing
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.


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Feeder cattle markets: crossroads of the cattle industry https://wlj.net/article-14-feeder-cattle-markets-crossroads-of-the-cattle-industry.html Feeder cattle markets: crossroads of the cattle industry
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.


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Fed Cattle Exchange: back soon https://wlj.net/article-14-fed-cattle-exchange-back-soon.html Fed Cattle Exchange: back soon
“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.


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Markets mixed after Independence Day https://wlj.net/article-14-markets-mixed-after-independence-day.html Markets mixed after Independence Day
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.


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U.S. cattle and beef: the most complex market of all https://wlj.net/article-14-us-cattle-and-beef-the-most-complex-market-of-all.html U.S. cattle and beef: the most complex market of all
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.


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Marketing plans for your livestock operation https://wlj.net/article-14-marketing-plans-for-your-livestock-operation.html Marketing plans for your livestock operation
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.


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Cash, futures rebound while cutouts go down https://wlj.net/article-14-cash-futures-rebound-while-cutouts-go-down.html Cash, futures rebound while cutouts go down
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.


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Many factors affecting beef market prices and volatility https://wlj.net/article-14-many-factors-affecting-beef-market-prices-and-volatility.html Many factors affecting beef market prices and volatility
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.


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New analysis affirms robust economic impact of U.S. hides and skins industry https://wlj.net/article-14-new-analysis-affirms-robust-economic-impact-of-us-hides-and-skins-industry.html New analysis affirms robust economic impact of U.S. hides and skins industry
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.


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Vile volatility https://wlj.net/article-14-vile-volatility.html Vile volatility
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:.


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