WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Sat, 23 Jul 16 00:00:00 -0600 en hourly 1 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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Q2 raises red flags of global economic slowdown https://wlj.net/article-14-q2-raises-red-flags-of-global-economic-slowdown.html Q2 raises red flags of global economic slowdown
Have you ever heard the phrase “A butterfly flaps its wings in Amazonian jungle and a storm ravages half of Europe,” or something similar? Such phrases are used to illustrate the butterfly effect. It is a concept within the mathematical field of study called “chaos theory.


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Cash cattle flirt with Q4 2015 lows https://wlj.net/article-14-cash-cattle-flirt-with-q4-2015-lows.html Cash cattle flirt with Q4 2015 lows

“Last week 5-area average steer prices were $120.62, the lowest of 2016 and the lowest since the market bottomed in December,” he noted last Monday morning. “Last week’s cash price was the lowest for that particular calendar week since 2012 when prices averaged $119.



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Beef markets continue to hold despite cattle crash https://wlj.net/article-14-beef-markets-continue-to-hold-despite-cattle-crash.html Beef markets continue to hold despite cattle crash
Last week saw a concerning multi-part collapse in the cattle markets. Cash fed cattle trade amounted to more than 20,000 head by close of trade on Thursday at prices significantly lower than those seen the week before. Live cattle traded for $118-122, $4-8 lower than the prior week, and dressed cattle went for $187-196, a whopping $9-23 lower.


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Cash, futures, and beef prices all up https://wlj.net/article-14-cash-futures-and-beef-prices-all-up.html Cash, futures, and beef prices all up

The cash fed cattle market was slow to develop last week as it had been the week before. At the end of last Thursday, barely 3,500 head had been confirmed sold. Though these levels were too low to establish a price trend for the week, prices ranging from $128-132 live and $204-206 dressed were steady to a few dollars above the prior week’s prices.



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Cutout edges higher after Memorial Day sales https://wlj.net/article-14-cutout-edges-higher-after-memorial-day-sales.html Cutout edges higher after Memorial Day sales
After the prior week’s hurry to get cash cattle sold, last week was still operating in holiday mode. Despite the fact packers were buying for full production this week in the Memorial Day-shortened last week, very little happened by Thursday afternoon.


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Messin’ with Mom’s house https://wlj.net/article-14-messin%25E2%2580%2599-with-mom%25E2%2580%2599s-house.html Messin’ with Mom’s house
I get this question about once a month: Mom is moving to assisted living, her house is being sold, and the attorney said we should see our tax adviser. If Mom owned and occupied the home as her principal residence for at least two of the five years preceding the sale, the first $250,000 of gain on the sale is tax-free in her 1040.


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Why retirees should consider giving charitably https://wlj.net/article-14-why-retirees-should-consider-giving-charitably.html Why retirees should consider giving charitably
trust then conducts the sale. In the case of machinery, the trust would be the temporary owner of the machinery and arrange the auction. The proceeds from the grain sale or the machinery auction come into the trust taxfree and are held by the trustee to pay the income amount at the specified dates (e.


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2016 beef markets so far https://wlj.net/article-14-2016-beef-markets-so-far.html 2016 beef markets so far
Memorial Day weekend is an important test of beef sales and beef demand. The success of the first big grilling holiday will be assessed over the coming days. There are indications that beef advertising features increased to support large volumes of beef purchased by retailers for the weekend.


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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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