WLJ - Cattle and Beef Markets https://wlj.net/articles.sec-14-1-cattle-and-beef-markets.html Sat, 29 Apr 17 00:00:00 -0600 en hourly 1 Everything’s looking up…still! https://wlj.net/article-14-everything%25E2%2580%2599s-looking-up%25E2%2580%25A6still_.html Everything’s looking up…still!
Cattle buyers got down to business last week and that business was likely pleasing to cattle feeders. By close of trade last Thursday, over 114,000 head of cash fed cattle had been confirmed sold on the negotiated market. Prices Thursday reached $129-134 live and $208-220....]]>
Export protocol negotiation will decide China trade timeline https://wlj.net/article-14-export-protocol-negotiation-will-decide-china-trade-timeline.html Export protocol negotiation will decide China trade timeline
Gaining access to the most populated country in the world would be a very positive development for the U.S. beef industry. China represents a multi-billiondollar market and has the greatest growth potential for beef consumption of any country in the world....]]>
China and global beef markets https://wlj.net/article-14-china-and-global-beef-markets.html China and global beef markets
In the fall of 2016, the Chinese government indicated a willingness to open China to U.S. beef. Although talks have been ongoing, no agreement has been reached on protocols for U.S. beef to move into the Chinese market. The Trump administration recently reaffirmed that talks will continue under the new U....]]>
More beef exports and fewer imports supports beef markets https://wlj.net/article-14-more-beef-exports-and-fewer-imports-supports-beef-markets.html More beef exports and fewer imports supports beef markets
U.S. beef exports continue the 2016 trend with additional improvement so far in 2017. February total beef exports were up 19.3 percent and combine with the January total for a year-todate increase of 20.1 percent year-over-year for the first two months of the year....]]>
Markets up ahead of holiday https://wlj.net/article-14-markets-up-ahead-of-holiday.html Markets up ahead of holiday
“The rally in the cattle futures market has narrowed a near-historically wide basis and the sellers are resistant to the shift,” noted Andrew Gottschalk of Hedgers Edge last Thursday morning, accurately predicting that the closure of the futures markets for Good Friday might spur cash activity at higher levels by Thursday’s close.


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Trump’s cuts could hurt agriculture https://wlj.net/article-14-trump%25E2%2580%2599s-cuts-could-hurt-agriculture.html Trump’s cuts could hurt agriculture
Trump’s plan calls for a 21 percent reduction to the USDA and includes cutting staff at agricultural service offices, along with statistical reports on crop prices and production levels that some farmers and others in the agricultural community rely on....]]>
Meat production on the rise in former Soviet Union countries https://wlj.net/article-14-meat-production-on-the-rise-in-former-soviet-union-countries.html Meat production on the rise in former Soviet Union countries
Former Soviet Union countries, Russia, Ukraine and Kazakhstan experienced significant contractions in meat production in the 1990s and early 2000s. This trend reversed since 2005, with meat production over 70 percent greater in 2011-15 than the low point in 2001-05....]]>
Market in correction mode until at least May https://wlj.net/article-14-market-in-correction-mode-until-at-least-may.html Market in correction mode until at least May
“Not all is desperate in the cattle industry right now,” said Troy Vetterkind of Vetterkind Cattle Brokerage last week. “As feedlots remain quite current, dressed cattle weights are either side of 25 lbs. below a year ago, and beef exports continue to run well above yearago levels (albeit a little slower right now).


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Trade with China, the whole world https://wlj.net/article-14-trade-with-china-the-whole-world.html Trade with China, the whole world
It seems last week was the week of trade talk about China and the world. As President Donald Trump prepared to meet with Chinese President Xi Jinping later this week, beef industry groups and trade-related organizations issued a flurry of letters and reports on the topic.


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March market gains end with madness https://wlj.net/article-14-march-market-gains-end-with-madness.html March market gains end with madness
By close of trade last Thursday, over 32,000 head had been confirmed sold in the cash fed cattle markets. Prices paid ranged from $124-132 live and $205-208 dressed. These prices were several dollars cooler than the previous week’s $210-215 live and $204-210 dressed prices.


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Retail food prices declined in 2016 https://wlj.net/article-14-retail-food-prices-declined-in-2016.html Retail food prices declined in 2016
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....]]>
Market continues up, but shows signs of cooling https://wlj.net/article-14-market-continues-up-but-shows-signs-of-cooling.html Market continues up, but shows signs of cooling
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.


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A deeper look at U.S. beef imports and tariffs https://wlj.net/article-14-a-deeper-look-at-us-beef-imports-and-tariffs.html A deeper look at U.S. beef imports and tariffs
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.


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Choice cutout continues rally https://wlj.net/article-14-choice-cutout-continues-rally.html Choice cutout continues rally
“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....]]>
Carcass weight key on marketing grid https://wlj.net/article-14-carcass-weight-key-on-marketing-grid.html Carcass weight key on marketing grid
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....]]>
Cash fed cattle markets blazing https://wlj.net/article-14-cash-fed-cattle-markets-blazing.html Cash fed cattle markets blazing
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.


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U.S. red meat exports maintain strong pace in January https://wlj.net/article-14-us-red-meat-exports-maintain-strong-pace-in-january.html U.S. red meat exports maintain strong pace in January
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....]]>
Mid-sized feedlots exit the cattle industry https://wlj.net/article-14-mid-sized-feedlots-exit-the-cattle-industry.html Mid-sized feedlots exit the cattle industry
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....]]>
What can financial ratios tell you? https://wlj.net/article-14-what-can-financial-ratios-tell-you.html What can financial ratios tell you?
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....]]>
United States beef trade with secondary markets https://wlj.net/article-14-united-states-beef-trade-with-secondary-markets.html United States beef trade with secondary markets
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.


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Cash cattle, beef, demand take market by storm https://wlj.net/article-14-cash-cattle-beef-demand-take-market-by-storm.html Cash cattle, beef, demand take market by storm
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.


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Potential trade disruption could have significant impact https://wlj.net/article-14-potential-trade-disruption-could-have-significant-impact.html Potential trade disruption could have significant impact
“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....]]>
Spotlight on economics: accessing agriculture’s big data https://wlj.net/article-14-spotlight-on-economics-accessing-agriculture%25E2%2580%2599s-big-data.html Spotlight on economics: accessing agriculture’s big data
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....]]>
Strategically marketing open cows for your profitability https://wlj.net/article-14-strategically-marketing-open-cows-for-your-profitability.html Strategically marketing open cows for your profitability
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....]]>
Farm sector’s working capital to weaken in 2017 https://wlj.net/article-14-farm-sector%25E2%2580%2599s-working-capital-to-weaken-in-2017.html Farm sector’s working capital to weaken in 2017
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....]]>
February futures at its finest https://wlj.net/article-14-february-futures-at-its-finest.html February futures at its finest
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....]]>
Markets on fire after lull https://wlj.net/article-14-markets-on-fire-after-lull.html Markets on fire after lull
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....]]>
Many factors can affect bred cow value https://wlj.net/article-14-many-factors-can-affect-bred-cow-value.html Many factors can affect bred cow value
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....]]>
Costco to offer 100 percent U.S. chilled beef in South Korea https://wlj.net/article-14-costco-to-offer-100-percent-us-chilled-beef-in-south-korea.html Costco to offer 100 percent U.S. chilled beef in South Korea
product. The move follows a multi-year effort by the U.S. Meat Export Federation (USMEF) to persuade store managers that sales of U.S. beef—a popular item at Costco —would match or exceed Australian beef sales due to revived consumer confidence in the safety of U....]]>
International trade plans might lead to a recession https://wlj.net/article-14-international-trade-plans-might-lead-to-a-recession.html International trade plans might lead to a recession
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......]]>