WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Sun, 05 Jul 15 00:00:00 -0600 en hourly 1 Futures surprise with limit up rally https://wlj.net/article-14-futures-surprise-with-limit-up-rally.html Futures surprise with limit up rally
For a short marketing week, there was no shortage of activity last week. Negotiated cash fed cattle trade got underway earlier than normal with packers trying to buy for a full production week while butted up to a holiday.


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Meat prices and production https://wlj.net/article-14-meat-prices-and-production.html Meat prices and production
The retail pork price in May was $3.696/lb., down 7.3 cents from April and 9.8 percent lower than one year ago. The May broiler composite retail price was $1.


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Futures plunge in late-week trade https://wlj.net/article-14-futures-plunge-in-late-week-trade.html Futures plunge in late-week trade
The cash fed cattle trade got underway last Thursday with almost 35,000 head confirmed sold on the negotiated market. Prices for live steers ranged from $147- 150—steady to lower compared to the prior week’s $149-150—and dressed steers were down $2-3 at $235-240.


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Low placements are today's new normal https://wlj.net/article-14-low-placements-are-todays-new-normal.html Low placements are today's new normal
The top cattle-feeding states were very mixed but mostly lower than the national average, meaning a lot of the year-to-year increase came from smaller cattle-feeding states. Both Colorado and Texas saw 2 percent declines in their on-feed populations at 890,000 and 2.


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2015 U.S. beef production is historically low, 2016 up https://wlj.net/article-14-2015-us-beef-production-is-historically-low-2016-up.html 2015 U.S. beef production is historically low, 2016 up
Historically small U.S. cattle inventory continues to support high beef prices in 2015, but at least in the short term, increasing imports of processing beef (especially from Australia) and heavy carcass weights have helped moderate some of the price pressures.


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Farm expenses vary by farm specialization https://wlj.net/article-14-farm-expenses-vary-by-farm-specialization.html Farm expenses vary by farm specialization
The variation in the percent of total expenses represented by individual expenses across different types of farms reflects how specialized U.S. agriculture has become.


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Beef buildup continues https://wlj.net/article-14-beef-buildup-continues.html Beef buildup continues
At 468.56 million pounds of beef in storage, beef stores were up 24 percent compared to last year, but down 3 percent from the prior month. The buildup was entirely credited to increased supplies of boneless beef, most of it likely from Australia given the still-favorable import environment.


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CRP enrollment acres fluctuate https://wlj.net/article-14-crp-enrollment-acres-fluctuate.html CRP enrollment acres fluctuate
The Agricultural Act of 2014 gradually reduces the cap on land enrolled in the Conservation Reserve Program (CRP) from 32 million acres to 24 million acres by 2017. CRP acreage declined 34 percent since 2007, falling from 36.8 million acres to 24.2 million by April 2015.


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Seasonal demand uncertainty weighs on the beef markets https://wlj.net/article-14-seasonal-demand-uncertainty-weighs-on-the-beef-markets.html Seasonal demand uncertainty weighs on the beef markets
Packers held off buying cash fed cattle last week until the very end. By Thursday, barely more than 4,000 head had been confirmed sold for the week. Live heifers were listed as $150 and dressed steers were listed as $241-243, though the volumes were too light to make these numbers relevant.


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IRC Section 1031 Exchange helps farmers, ranchers build wealth https://wlj.net/article-14-irc-section-1031-exchange-helps-farmers-ranchers-build-wealth.html IRC Section 1031 Exchange helps farmers, ranchers build wealth
The IRC Section 1031 Exchange is one of the most powerful tax saving and wealth building tools available for families selling highly appreciated farm/ ranch land. A properly structured 1031 exchange allows a family selling a farm or ranch to sell land, to reinvest the proceeds in other “like-kind” real estate, and to defer capital gain taxes.


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Labor 101: monetary policy and slack in the labor market https://wlj.net/article-14-labor-101-monetary-policy-and-slack-in-the-labor-market.html Labor 101: monetary policy and slack in the labor market
The U.S. Constitution gives Congress the authority to conduct monetary policy. Beginning with the 1913 Federal Reserve Act, Congress has delegated this authority to the Federal Reserve (Fed). Congress has provided the Fed with a dual mandate: price stability and maximum employment.


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Used farm machinery glut grows; Market 'not all dead' https://wlj.net/article-14-used-farm-machinery-glut-grows-market-not-all-dead.html Used farm machinery glut grows; Market 'not all dead'
“Growers have the newest fleet of equipment in the last 40 years. They can run without high repair bills,” notes Wade Litton, General Manager of Wade Inc., a John Deere dealership with 11 locations in the Mississippi Delta. Well-tooled operations combined with an abrupt collapse in grain farm incomes and uncertainty over Sec.


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Placements reduce 2015 beef production https://wlj.net/article-14-placements-reduce-2015-beef-production.html Placements reduce 2015 beef production
The most recent World Agricultural Supply and Demand Estimates (WASDE) report, released last Wednesday, altered estimates for beef production and trade. The result is a mostly mixed situation compared to pork and chicken. Estimates on corn production and supply changed only slightly.


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Beef cutout rally surprises market https://wlj.net/article-14-beef-cutout-rally-surprises-market.html Beef cutout rally surprises market
Cash fed cattle trade was again at a snail’s pace last week as packers hoped for—and again likely missed—an opportunity to buy cattle cheaper. By the close of trade on Thursday, not even 4,000 head had been confirmed sold. Though volumes were too low to establish a trend, live cattle sold for $155 and dressed for $246, steady with the prior week.


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Tips for forward contracting calves https://wlj.net/article-14-tips-for-forward-contracting-calves.html Tips for forward contracting calves
Seasonally, this is a time of year when the cash price for calves finishes its increasing pattern. The summer sales volume tends to be low and prices tend to be more volatile. In recent weeks the price level has risen back to near $300 per cwt., just shy of last fall’s record price level.


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The charitable remainder trust https://wlj.net/article-14-the-charitable-remainder-trust.html The charitable remainder trust
A charitable remainder trust (CRT) enables a family selling a farm or ranch to avoid tax on the sale of their land, livestock and equipment and generate lifetime income for retirement. In addition to saving taxes and generating a lifetime income, a CRT provides several other benefits:.


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Estate tax liability varies by farm size https://wlj.net/article-14-estate-tax-liability-varies-by-farm-size.html Estate tax liability varies by farm size
If an estate has a value greater than the exemption amount ($5.34 million in 2014), it must file a return. An estimated 2.7 percent of farm estates would be required to file an estate tax return in 2014, with about 0.8 percent of estates owing any federal estate tax.


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Market uncertainty as beef prices fall https://wlj.net/article-14-market-uncertainty-as-beef-prices-fall.html Market uncertainty as beef prices fall
Last week, packers and feedlots had a standoff on cash fed trade. Early week indications suggested futures prices would decline sharply—mostly due to concerns over poor seasonal demand and declining wholesale beef prices—prompting packers to hold off and possibly buy fewer cattle.


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Beef export value still climbing https://wlj.net/article-14-beef-export-value-still-climbing.html Beef export value still climbing
April exports of U.S. pork reached the largest monthly volume in more than a year, while U.S. beef exports remained on a record value pace through April, according to data released by US- DA and compiled by the U.S. Meat Export Federation (USMEF) last week.


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Minimizing taxes takes a plan https://wlj.net/article-14-minimizing-taxes-takes-a-plan.html Minimizing taxes takes a plan
For too many, planning means a focus on next week’s activities. However, when it comes to income taxes, the perspective needs to be long-term. Today’s tax rate system is insanely complex (by design, but that’s a topic for another day). The hazard is not merely a more steeply graduated rate system; it’s also the layering of additional taxes (the 3.


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CDs versus stock and bond market https://wlj.net/article-14-cds-versus-stock-and-bond-market.html CDs versus stock and bond market
“Net Return” is the gross return of CDs or the S&P 500 adjusted for inflation. While stocks incur more risk, CDs offer a fixed rate of return, and the interest and principal on CDs will generally be insured by the Federal Deposit Insurance Corporation up to $250,000.


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Cattle markets look strong on all fronts https://wlj.net/article-14-cattle-markets-look-strong-on-all-fronts.html Cattle markets look strong on all fronts
Cash trade was slow to develop during the holiday-shortened week last week, and early expectations were for a steady to lower trade compared to the prior week’s $159-161 live and $250-253 dressed prices. As of close of trade last Thursday, 967 head had been confirmed sold with volumes too low to establish the week’s price trend.


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Beef demand is the market’s big mystery https://wlj.net/article-14-beef-demand-is-the-market%25E2%2580%2599s-big-mystery.html Beef demand is the market’s big mystery
The markets may well be on the precipice before the fall, or they could have some good times ahead. It’s anyone’s game at this point, and it all depends on the consumer at the meat counter. How much beef are they willing to buy for the traditionally best beef demand period of the year, and how much are they willing to pay for it?.


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The double-edged sword of free trade agreements https://wlj.net/article-14-the-double-edged-sword-of-free-trade-agreements.html The double-edged sword of free trade agreements
The world economy is getting more global. And the global middle class is growing, and with it, its taste for beef. If the U.S. can’t supply it economically, the world will look to other countries, leaving the U.S. behind in the great trade race on beef exports.


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Avian Influenza and meat markets https://wlj.net/article-14-avian-influenza-and-meat-markets.html Avian Influenza and meat markets
As a result, the biggest and most immediate impact for consumers is in egg markets, especially in the north central part of the country. The reduced supply of table eggs as well as breaking eggs used in food service will impact consumers directly and indirectly.


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Farm costs rise to 10.5 cents of U.S. food dollar https://wlj.net/article-14-farm-costs-rise-to-105-cents-of-us-food-dollar.html Farm costs rise to 10.5 cents of U.S. food dollar
In the U.S., 10.5 cents of a typical dollar spent by consumers on domestically-produced food in 2013 represented value added by farm producers, up 8 percent from the previous two years. Products and services provided to farmers by agribusinesses, such as fertilizers and veterinary services, accounted for 2.


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What to know when selling a farm or ranch https://wlj.net/article-14-what-to-know-when-selling-a-farm-or-ranch.html What to know when selling a farm or ranch
If you are considering selling a farm or ranch, there are important tax and financial planning issues of which you need to be aware. Engaging in planning prior to a sale is critical for identifying these issues and for implementing strategies to effectively address them.


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What is in store for commodities in 2016 https://wlj.net/article-14-what-is-in-store-for-commodities-in-2016.html What is in store for commodities in 2016
The government economists and agricultural analysts broke out their crystal balls last week. The most recent World Agricultural Supply and Demand Estimates (WASDE) report was the first to make projections on the 2016 situation.


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Markets higher on beef demand rumors https://wlj.net/article-14-markets-higher-on-beef-demand-rumors.html Markets higher on beef demand rumors
Retail beef demand is teasing the market with thoughts that it might be improving. The futures— both live and feeder—responded in kind with rising cutout values. And if the minimal cash fed trade that developed by Thursday afternoon was any indication, so too did the cash market.


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Current beef expectations https://wlj.net/article-14-current-beef-expectations.html Current beef expectations
Production estimates for this year were increased 58 million pounds to 24.34 billion pounds, mostly on increased carcass weights. This plus trade changes upped the estimates for per capita availability of beef by a half-pound to 54.6 pounds per person.


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