WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Thu, 05 May 16 00:00:00 -0600 en hourly 1 Beef production outpaces demand https://wlj.net/article-14-beef-production-outpaces-demand.html Beef production outpaces demand
With market reins in hand, packers held off buying cattle last week until a bit on Thursday and a bit on Friday. At least for Thursday, this strategy worked out for them as it allowed them to buy cattle cheaper after near limit-down declines in the live futures market.


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The importance of depreciation when keeping records https://wlj.net/article-14-the-importance-of-depreciation-when-keeping-records.html The importance of depreciation when keeping records
“Careful consideration of how to report tax depreciation helps producers comply with IRS regulations and can result in a reduction of income taxes paid,” said Shannon Sand, South Dakota State University (SDSU) Extension Livestock Business Management Field Specialist.


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U.S. meat and poultry exports are projected to rise https://wlj.net/article-14-us-meat-and-poultry-exports-are-projected-to-rise.html U.S. meat and poultry exports are projected to rise
A strengthening U.S. dollar coupled with poultry trade restrictions related to highly pathogenic avian influenza (HPAI) led to a reduction in U.S. meat and poultry exports in 2015. However, U.S. red meat and poultry exports are expected to rise over the next decade as steady global economic growth supports demand for high-quality animal proteins.


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More cattle on feed and less beef in cold storage https://wlj.net/article-14-more-cattle-on-feed-and-less-beef-in-cold-storage.html More cattle on feed and less beef in cold storage
The latest Cattle on Feed (COF) report showed feedlot inventories (among feedlots with 1,000 head or more capacity) on April 1 of 10.853 million head, 100.5 percent of year-ago levels. March feedlot marketings were 107 percent of last year and placements were 104.


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Futures fall to limit down on Monday https://wlj.net/article-14-futures-fall-to-limit-down-on-monday.html Futures fall to limit down on Monday
Losses on both CME live and feeder cattle futures early last week has made buyers extremely cautious. Last Monday saw limit down trading in the live cattle futures when the April prices fell by the CME daily limit of 3 cents to $1.28 per pound. Cattle futures also saw a downturn, falling 3 cents to $1.


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Cutout values surge, markets left behind https://wlj.net/article-14-cutout-values-surge-markets-left-behind.html Cutout values surge, markets left behind
The cash fed cattle market was slow last week and what had come in was mixed. By close of trade on Thursday, only 15,000 head had been confirmed sold. Though that is sufficient for a weekly trend, it is a far sight lower than the prior week’s 50,000+ head that had been confirmed sold by that time.


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Cash cattle sideways while futures recover https://wlj.net/article-14-cash-cattle-sideways-while-futures-recover.html Cash cattle sideways while futures recover
The cash fed cattle trade got underway in the rarely-seen usual fashion last week, with over 50,000 head having been confirmed sold by close of trade on Thursday. Prices paid for cash cattle were steady with the prior week at $132-135 (up $1 on the upper end of the range) for live and $213-215 dressed.


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U.S. meat exports sluggish in February https://wlj.net/article-14-us-meat-exports-sluggish-in-february.html U.S. meat exports sluggish in February
February beef exports totaled 83,203 metric tons (mt), up slightly from last year, while value dropped 18 percent to $437 million. January-February exports were up 2 percent in volume (165,504 mt) from a year ago but fell 16 percent in value ($875.1 million).


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Mexican beef exports continue with rapid growth https://wlj.net/article-14-mexican-beef-exports-continue-with-rapid-growth.html Mexican beef exports continue with rapid growth
Mexican beef exports have grown rapidly in recent years. Total beef exports began increasing in 2009 and have increased from about 28,000 metric tons in 2008 to over 161,000 metric tons in 2015, a nearly six-fold increase. Currently, Mexico is the 10th largest beef exporting country, exceeding Argentina for the first time in 2015.


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Are you a real farmer? The answer has consequences https://wlj.net/article-14-are-you-a-real-farmer-the-answer-has-consequences.html Are you a real farmer? The answer has consequences
A key definition in the tax law involves growing. An agricultural operation that’s conducting crop or animal production is classified as a farmer. Activities that only provide services to an agricultural producer aren’t farming.


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Prospective Plantings: 2016 Corn acreage up https://wlj.net/article-14-prospective-plantings-2016-corn-acreage-up.html Prospective Plantings: 2016 Corn acreage up
Corn futures reacted negatively to the larger-thanexpected acreage projections in the report with the entire board seeing red. By Thursday’s settle, the nearterm corn contract stood at 351'4, down 15'4 in just Thursday’s trade. The more deferred contracts of December 2016 and March 2017 were at 368'6 (down 15'2) and 378'2 (down 14'4) respectively....]]>
Rabobank: Beef trade outlook changing https://wlj.net/article-14-rabobank-beef-trade-outlook-changing.html Rabobank: Beef trade outlook changing
Last week saw the release of Rabobank’s first quarter beef report. The focus was on international beef trade. South American beef countries, China, Oceania, and North America all are or will see changes in their trade-related fundamentals in 2016, according to the report....]]>
Price risk management and LRP Insurance https://wlj.net/article-14-price-risk-management-and-lrp-insurance.html Price risk management and LRP Insurance
Every operation should develop and maintain a marketing plan. The plans can be very simple to very complex, depending on your situation and level of detail. These plans need to be flexible and updated as things change. Price risk management is one piece of this marketing plan that we will discuss in further detail....]]>
Exports of red meat expected to increase in 2016 https://wlj.net/article-14-exports-of-red-meat-expected-to-increase-in-2016.html Exports of red meat expected to increase in 2016
Red meat and poultry exports as a share of production are down from the average over the previous five years, reflecting the combination of a strengthening dollar, slowing global economy, and restrictions on poultry exports put in place as a result of the U....]]>
U.S. farm income forecast to fall in 2016 https://wlj.net/article-14-us-farm-income-forecast-to-fall-in-2016.html U.S. farm income forecast to fall in 2016
As of Feb. 9, 2016, U.S. net farm income is forecast to fall to $54.8 billion in 2016 after recently peaking in 2013, due largely to declines in commodity prices. In inflation-adjusted terms, since 1970 only five years have registered lower net farm income....]]>
Futures swing wildly; up and down the limit https://wlj.net/article-14-futures-swing-wildly-up-and-down-the-limit.html Futures swing wildly; up and down the limit
Cash fed cattle trade got over and done with by the end of day on Thursday, but perhaps not to the tune cattle feeders would have hoped for. With more than 42,000 head confirmed sold by the end of day last Thursday, prices slipped up to $6 at $131-135 for live cattle, and $214-215 for dressed cattle, a $1-4 decline.


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CA’s water deliveries dip below averages https://wlj.net/article-14-ca%25E2%2580%2599s-water-deliveries-dip-below-averages.html CA’s water deliveries dip below averages
In California, measures of exposure to local water shortages are only part of how the drought is affecting farms. California agriculture relies heavily on irrigation, and much of the irrigation water is supplied by large-scale state and federal water projects that store, transport, and deliver water across hundreds of miles....]]>
Placements jump in latest Cattle On Feed report https://wlj.net/article-14-placements-jump-in-latest-cattle-on-feed-report.html Placements jump in latest Cattle On Feed report
First, the basics of the report: Marketings of cattle out of feedlots with a 1,000 head or greater capacity during February were up 5 percent, largely due to the effects of an extra day from leap year. Placements into feedlots during February were up 10 percent compared to February 2015....]]>
After the up comes the down https://wlj.net/article-14-after-the-up-comes-the-down.html After the up comes the down
What the market gives it also takes away. Last week saw all sectors of the cattle and beef markets fall. In most cases the losses from last week returned all of the gains made the week before. In the cash fed cattle market, over 22,000 head had been confirmed sold by Thursday afternoon.


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Everything’s heading up in the markets https://wlj.net/article-14-everything%25E2%2580%2599s-heading-up-in-the-markets.html Everything’s heading up in the markets
Cash fed cattle trade was almost non-existent ahead of last week’s Friday release of the March Cattle on Feed report. By Thursday afternoon, not even 2,000 head had been confirmed sold. Those that did sell sold for $139-140 live and $222-225 dressed.


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A herd expansion progress report https://wlj.net/article-14-a-herd-expansion-progress-report.html A herd expansion progress report
In 1990-1996, the last complete herd expansion in the beef industry, the beef cow herd increased about 2.9 million head, from 32.5 million head in 1990 to 35.3 million head in 1996. This included one year of expansion of 3.


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Farms with direct-to-consumer sales survived recession better https://wlj.net/article-14-farms-with-direct-to-consumer-sales-survived-recession-better.html Farms with direct-to-consumer sales survived recession better
Direct-to-consumer (DTC) marketing—where producers engage with consumers face-to-face at roadside stands, farmers’ markets, pick-your-own farms, on-farm stores, and community-supported agricultural arrangements (CSAs)—brings benefits for consumers as well as the farm businesses.


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International ag supply report called bullish https://wlj.net/article-14-international-ag-supply-report-called-bullish.html International ag supply report called bullish
The most recent World Agricultural Supply and Demand Estimate report held few changes for meat and poultry, but attention was on the grain ending stocks and world supplies. The report was called neutral on the domestic side and bullish on the world stage by DTN Analyst, Todd Hultman.


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Oklahoma Quality Beef Network’s fall 2015 sales: The tide has receded https://wlj.net/article-14-oklahoma-quality-beef-network%25E2%2580%2599s-fall-2015-sales-the-tide-has-receded.html Oklahoma Quality Beef Network’s fall 2015 sales: The tide has receded
Last year’s Oklahoma State University agricultural economists titled the Oklahoma Quality Beef Network’s (OQBN) 2014 Sale Summary, “A rising tide lifts all boats.” After record prices—and record premiums— in 2014, the feeder calf market in the latter part of 2015 took a different track.


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January meat export volumes up, values lower https://wlj.net/article-14-january-meat-export-volumes-up-values-lower.html January meat export volumes up, values lower
Beef exports increased 3 percent from a year ago to 82,301 metric tons (mt), but value was down 13 percent to $438.1 million.


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Canadian cattle inventory https://wlj.net/article-14-canadian-cattle-inventory.html Canadian cattle inventory
But Canada’s cattle herd is not growing much, a new USDA report—United States and Canadian Cattle and Sheep, released last Tuesday—shows. Whereas the number of all cattle and calves in the U.S. on Jan. 1, 2016 grew 3 percent to 91.99 million head, the Canadian herd grew very slightly, from 11.


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Good weather also brings good markets https://wlj.net/article-14-good-weather-also-brings-good-markets.html Good weather also brings good markets
As with the prior week’s market, last week’s cash fed cattle market dallied and put off relevant sale volume until Friday. As of Thursday afternoon, not even 5,000 head had sold throughout the week, posting no trade trends that could be compared to the prior week’s $132-136 live and $210-214 dressed prices.


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Markets move sideways https://wlj.net/article-14-markets-move-sideways.html Markets move sideways
The cash fed cattle market was exceptionally dead last week, with not even 2,000 head being confirmed sold by end of day Thursday. The prior week saw slow sales pushed off until Friday, with prices eventually coming out to $137- 140 live and $208-214.


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Imports of Mexican cattle likely to decrease https://wlj.net/article-14-imports-of-mexican-cattle-likely-to-decrease.html Imports of Mexican cattle likely to decrease
Mexico has exported feeder cattle to the U.S. for more than a century and continues to do so today. After increasing in the mid-1980s, U.S. imports of Mexican cattle have averaged 1.08 million head for the last 30 years. In the most recent 10 years, the average has been slightly higher at 1....]]>
2016 food price inflation expected to exceed 2015 https://wlj.net/article-14-2016-food-price-inflation-expected-to-exceed-2015.html 2016 food price inflation expected to exceed 2015
Over the last decade, retail food price inflation in the United States has bounced around a bit, with yearly price increases ranging from 0.3 to 6.4 percent. In 2007 and 2008, grocery store prices rose 4.2 and 6.4 percent, respectively—well above the 20-year annual average increase of 2.


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