WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Fri, 31 Jul 15 00:00:00 -0600 en hourly 1 A million more beef females in the herd https://wlj.net/article-14-a-million-more-beef-females-in-the-herd.html A million more beef females in the herd
The mid-year Cattle Inventory report confirms that herd building is taking place at a meteoric pace… relatively speaking. The total cattle and calf herd was up 2.2 percent as of July 1 compared to July 1 of 2014 with 98.4 million head.


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Cutout may have hit bottom; cash fed cattle still looking https://wlj.net/article-14-cutout-may-have-hit-bottom-cash-fed-cattle-still-looking.html Cutout may have hit bottom; cash fed cattle still looking
“Seasonal lows are often scored during the second-half of July. Likewise, cash prices have scored their third quarter low during July in 10 of the previous 12 years. The hazard for this type of seasonal recovery to materialize this year is the lack of fed cattle marketings, which is creating a heavily.


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Feed report called bearish for higher placements https://wlj.net/article-14-feed-report-called-bearish-for-higher-placements.html Feed report called bearish for higher placements
Feedlot inventories as of July 1 in feedlots with 1,000-head or greater capacities stood at 10.24 million head, up 1.9 percent compared to July 1, 2014. This is mostly in line with the average pre-report industry projection of a 1.6 percent increase.


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Report show stores of boneless beef increase https://wlj.net/article-14-report-show-stores-of-boneless-beef-increase.html Report show stores of boneless beef increase
The most recent Cold Storage report shows a growing stock of all the major protein in U.S. warehouses. All told, stores of all meat (red meat and poultry) as of June 30 stood at 2.33 billion pounds, up 17 percent from the same time last year. Most of this increase came from increases in stored beef, though all the major proteins saw increases.


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Over 90 percent of U.S. crop acres GE in 2015 https://wlj.net/article-14-over-90-percent-of-us-crop-acres-ge-in-2015.html Over 90 percent of U.S. crop acres GE in 2015
Herbicide-tolerant (HT) crops, developed to survive the application of specific herbicides that previously would have destroyed the crop along with the targeted weeds, provide farmers with a broader variety of options for weed control. Insect-resistant crops (Bt) contain a gene from the soil bacterium Bacillus thuringiensis that produces a protein.


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Cutout prices search for a seasonal low https://wlj.net/article-14-cutout-prices-search-for-a-seasonal-low.html Cutout prices search for a seasonal low
Cash cattle trade was slow to develop last week ahead of the release of the monthly Cattle on Feed and bi-annual Cattle Inventory reports. By close of trade on Thursday, over 20,000 head had been confirmed sold with prices ranging from $144-147 live (averaging in the low $145s) and $230-233 dressed (averaging in the upper $231s).


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Unique U.S. beef and cattle trade situation continues https://wlj.net/article-14-unique-us-beef-and-cattle-trade-situation-continues.html Unique U.S. beef and cattle trade situation continues
The unique U.S. beef and cattle trade situation that developed in 2014 has continued in 2015. Falling beef production is keeping beef supplies tight and prices near record levels in the U.S. This discourages beef exports and attracts more beef and cattle imports.


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Summer meat demand explained https://wlj.net/article-14-summer-meat-demand-explained.html Summer meat demand explained
The All Fresh retail beef price was $6.114/lb., up $0.059 cents from May and up $0.606/lb. from one year ago. The June retail pork price was $3.703/lb., up $0.007/lb. from last month but $0.413/lb. lower than June of 2014. The retail broiler composite price was $1.


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Median farm income exceeds U.S. households https://wlj.net/article-14-median-farm-income-exceeds-us-households.html Median farm income exceeds U.S. households
Since USDA’s Agricultural Resource Management Survey began collecting data in 1996, the median income of farm households has risen while real U.S. median household income has remained essentially flat. This may be due to a variety of factors including farm consolidation, increasing commodity prices, and minimal increases in hourly wages for all U.S.


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Will corn be king again? https://wlj.net/article-14-will-corn-be-king-again.html Will corn be king again?
The most recent World Agricultural Supply and Demand Estimates (WASDE) report was a boon to corn farmers and likely left a bitter taste in the mouths of cattle and beef ranchers concerned with the trade situation; corn stocks are down, meaning prices are up, and the U.S.


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Diminishing beef demand continues to weigh on markets https://wlj.net/article-14-diminishing-beef-demand-continues-to-weigh-on-markets.html Diminishing beef demand continues to weigh on markets
Cash fed cattle trade was slow to develop last week. By Thursday’s close of trade, not even 2,400 head had been confirmed sold for the week. Analysts expected that general cash trade would be a couple dollars lower than the prior week’s $150 live and $238-242 dressed prices.


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Profitability varies by farm size https://wlj.net/article-14-profitability-varies-by-farm-size.html Profitability varies by farm size
Seventy-nine to 86 percent of retirement, off-farm occupation, and lowsales farms are in the “red zone” (farms with an RRA of less than 1 percent), indicating a very low return to farming. The share of farms in the red zone drops rapidly for the remaining family farm types, those with moderate sales and higher.


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Retirement income tips https://wlj.net/article-14-retirement-income-tips.html Retirement income tips
Accumulating assets is one thing. Converting those assets into a retirement income stream you can’t outlive is another. One way to derive income from your investments is to distribute only the interest and/or dividends the investments generate each year.


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Cutout values plunge as beef demand slacks after holiday https://wlj.net/article-14-cutout-values-plunge-as-beef-demand-slacks-after-holiday.html Cutout values plunge as beef demand slacks after holiday
Last week was awash in downward markets and concerns of a financial nature. With international financial uncertainties in Asia and Greece, and seasonal beef demand less than what it should or could be, the cattle and beef world did not escape unscathed with futures and beef cutouts plunging.


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JBS agrees to purchase Cargill pork operations https://wlj.net/article-14-jbs-agrees-to-purchase-cargill-pork-operations.html JBS agrees to purchase Cargill pork operations
The JBS acquisition includes two Midwest meat processing plants; one in Ottumwa, IA, and the other at Beardstown, IL. Both plants were acquired by Cargill in 1987, and in 2014 they processed a total of 9.3 million hogs. The purchase also includes five feed mills—two in Missouri, and one each in Arkansas, Iowa and Texas—and four hog farms—two in.


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United States beef, pork exports sluggish in May https://wlj.net/article-14-united-states-beef-pork-exports-sluggish-in-may.html United States beef, pork exports sluggish in May
Beef exports moved counter-seasonally lower in May, dropping 14 percent from a year ago to 88,466 metric tons (mt). Export value dipped lower year-over-year for the first time since January, reaching only $556.7 million (down 6 percent). For January through May, exports totaled 430,393 mt, down 10 percent from the same period in 2014.


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Using life insurance can help provide for off-farm inheritors https://wlj.net/article-14-using-life-insurance-can-help-provide-for-off-farm-inheritors.html Using life insurance can help provide for off-farm inheritors
A difficult question for many agricultural families today is deciding how to leave a fair inheritance for each of their children. It’s common to have one child who has stayed on the place and other children who have pursued different careers. The parents often desire to keep the farm/ranch in the family.


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United States, Cuba re-establish diplomatic ties https://wlj.net/article-14-united-states-cuba-re-establish-diplomatic-ties.html United States, Cuba re-establish diplomatic ties
In a statement delivered in the Rose Garden, Obama said, “In January of 1961, the year I was born, when President Eisenhower announced the termination of our relations with Cuba, he said: ‘It is my hope and my conviction that in the not-too-distant...


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Retail beef prices higher in 2015 https://wlj.net/article-14-retail-beef-prices-higher-in-2015.html Retail beef prices higher in 2015
When shopping at the meat counter this Fourth of July, consumers noticed differences in prices per pound compared to last year. A pound of pork chops sold for $3.79 in May 2015 compared to $4.11 per pound in May 2014, a decrease of 7.8 percent. The price of boneless chicken breasts has also fallen, decreasing by 1.


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The decision to retain ownership https://wlj.net/article-14-the-decision-to-retain-ownership.html The decision to retain ownership
Producers have many options when it comes to choosing a time and a method to market their calves. There is the option to market calves at weaning straight from the cow, the option to market calves after a backgrounding period, the option to market...


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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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