WLJ - Cattle and Beef Markets https://wlj.net/articles.sec-14-1-cattle-and-beef-markets.html Fri, 09 Dec 16 00:00:00 -0700 en hourly 1 Markets mixed with cash down, futures up https://wlj.net/article-14-markets-mixed-with-cash-down-futures-up.html Markets mixed with cash down, futures up
By end of trade last Thursday, there had been an anemic showing for the cash fed cattle market compared to recent weeks. With not even 32,500 head confirmed sold for the week—past weeks have seen over 90,000 head and more sold by the same time—prices were down $3-4 from the prior week at $106-112 live and down $5-7 at $168-170 dressed.


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Estimating the number of heifers to keep https://wlj.net/article-14-estimating-the-number-of-heifers-to-keep.html Estimating the number of heifers to keep
Each year commercial cow/calf operations must decide how many replacement heifers are grown out to be put in the breeding pasture. Individual ranches must make the decisions about heifer retention based upon factors that directly affect their bottom line....]]>
Year-end tax preparation thoughts https://wlj.net/article-14-year-end-tax-preparation-thoughts.html Year-end tax preparation thoughts
Most ag producers are well aware of the $500,000 Section 179 first-year deduction that’s available for 2016, as well as the 50 percent bonus depreciation available on new (not used) assets....]]>
Cattle markets wrap up 2016 https://wlj.net/article-14-cattle-markets-wrap-up-2016.html Cattle markets wrap up 2016
The transition to bigger beef supplies (and psychologically to the idea of bigger supplies) that began impacting cattle markets in 2015 continued in 2016. Markets adjusted down, including a brutal, fear-driven crash in markets in the third quarter, followed by a significant rally in the fourth quarter....]]>
Cattle import projections are mixed for coming year https://wlj.net/article-14-cattle-import-projections-are-mixed-for-coming-year.html Cattle import projections are mixed for coming year
“Essentially, the U.S. only imports cattle (live animals) from Canada and Mexico,” LMIC noted. The types of cattle imported differ based on their source: feeders (steers and spayed heifers) from Mexico; and feeders, fed cattle, and slaughter-ready cows and bulls from Canada.


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Cash markets continue upward https://wlj.net/article-14-cash-markets-continue-upward.html Cash markets continue upward
The Fed Cattle Exchange set the tone for last week’s cash fed cattle markets at $110-114, selling most of its 4,718-head offering. This was up $2-4 above the prior week’s sale range. By close of trade Thursday, almost 91,000 head had been confirmed sold for the week at $110- 115 live and $174-182 (average $175.


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California is top state for ag export value https://wlj.net/article-14-california-is-top-state-for-ag-export-value.html California is top state for ag export value
All U.S. states export some agricultural products to markets overseas. While the value of agricultural exports is relatively modest for states like Alaska, Rhode Island and New Hampshire (less than $100 million in 2015), many states rely on agricultural exports for a large share of their market revenue.


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Is China the future of U.S. beef trade? https://wlj.net/article-14-is-china-the-future-of-us-beef-trade.html Is China the future of U.S. beef trade?
“The forecast going into next year, I think, is bright as far as recovering some of our export markets,” Ross Wilson—President and CEO Texas Cattle Feeders Association— told audiences at the recent American Bankers Association’s Agricultural Bankers Conference, held in Indianapolis, IN.


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Packer margins fall as fed cattle, beef prices increase https://wlj.net/article-14-packer-margins-fall-as-fed-cattle-beef-prices-increase.html Packer margins fall as fed cattle, beef prices increase
The Fed Cattle Exchange kicked off last week’s Thanksgiving-shortened trade week with improved prices. It again saw fed cattle prices increase over the prior week’s sales. Almost 4,800 head of the 7,644-head offering sold at or $1.50 over the prior-week’s sale high of $108....]]>
Rural/urban differences reflect industrial composition https://wlj.net/article-14-rural_urban-differences-reflect-industrial-composition.html Rural/urban differences reflect industrial composition
Many of the differences between rural and urban economies reflect differences in their industrial composition. While service industries account for the largest share of jobs and earnings in both rural and urban areas, rural areas are more dependent on manufacturing and industries producing primary goods—such as farming, forestry and mining....]]>
Ag credit stress runs hot and cold https://wlj.net/article-14-ag-credit-stress-runs-hot-and-cold.html Ag credit stress runs hot and cold
Harvest 2016 isn’t officially over, but already predictions of a fourth and fifth consecutive year of grim commodity prices in 2017 and 2018 are putting a damper on agricultural lenders’ attitudes....]]>
Feedlots chew through cattle supplies; marketings up 5.2 percent https://wlj.net/article-14-feedlots-chew-through-cattle-supplies-marketings-up-52-percent.html Feedlots chew through cattle supplies; marketings up 5.2 percent
Feedlots continued a strong marketing pace in October with marketings up 4.6 percent year-over-year despite one less business day in the month. October placements followed the September monthly decrease with another 5 percent reduction in placements year-over-year....]]>
Strategic, scenario planning in ranching designed to help you weather the storm https://wlj.net/article-14-strategic-scenario-planning-in-ranching-designed-to-help-you-weather-the-storm.html Strategic, scenario planning in ranching designed to help you weather the storm
Current markets have many cattle producers asking, “How do we prepare for 2017 and weather this storm?” Strategic planning is one answer given by Sean Kelly, South Dakota State University (SDSU) Extension Range Management Field Specialist....]]>
Finally! A big break — up https://wlj.net/article-14-finally_-a-big-break-%25E2%2580%2594-up.html Finally! A big break — up
On Wednesday, nearly all of the Fed Cattle Exchange’s +13,000-head offering sold from $103.25-108.25. The bulk of the trade was in the $106-108 region, up about $4 on both ends of the range from the prior week. This surprisingly strong trade set the tone for the rest of the week’s impressive cash fed cattle trade.


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The once and future cattle, beef markets https://wlj.net/article-14-the-once-and-future-cattle-beef-markets.html The once and future cattle, beef markets
Gesturing to a massive data chart detailing the painful price decline cattle producers have suffered recently, he asked, “What do you see when you look at that data? How much money has the cattle feeding segment made over the last 18-24 months if...


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Fewer cattle imports in 2016 https://wlj.net/article-14-fewer-cattle-imports-in-2016.html Fewer cattle imports in 2016
Total cattle imports from Canada and Mexico are down 19.8 percent yearover-year for the first 10 months of the year including a 13.9 percent decrease from Canada and 24.3 percent fewer cattle from Mexico compared to one year ago. Total cattle imports for the year-to-date include slaughter cattle which are up 10....]]>
2003-13 Private sector ag R&D up sharply https://wlj.net/article-14-2003-13-private-sector-ag-rd-up-sharply.html 2003-13 Private sector ag R&D up sharply
This is a relatively new phenomenon; historically, the public sector has led funding. From 1971 to the early 2000s, total public and total private R&D on food and agriculture followed each other closely....]]>
Tumultuous trade https://wlj.net/article-14-tumultuous-trade.html Tumultuous trade
The dust is settling on Election 2016, but the issues that motivated Americans to vote are not going away. International trade in particular was a big campaign issue for President-elect Donald Trump. Some have argued his positions on the issue helped rural America rally around him.


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Markets mixed post-election https://wlj.net/article-14-markets-mixed-post-election.html Markets mixed post-election
The cash fed cattle trade was— relatively speaking—very slow to develop last week. By close of trade Thursday afternoon, just under 21,000 head had been confirmed sold with most of that volume selling on Wednesday. Half of that volume was attributable to the Fed Cattle Exchange, which sold almost 11,000 head of its nearly 13,000 offered head.


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Feeding cull cows prior to sale may add value https://wlj.net/article-14-feeding-cull-cows-prior-to-sale-may-add-value.html Feeding cull cows prior to sale may add value
Every year beef cattle producers have to make decisions about how to handle open cows that didn’t become pregnant. Most producers simply sell the animals after pregnancy check time....]]>
Farm parents: Time to rethink estate plans https://wlj.net/article-14-farm-parents-time-to-rethink-estate-plans.html Farm parents: Time to rethink estate plans
Farm parents and their successors may need to reevaluate their previous expectations as cash flows shrink in this farm recession and proposed treasury regulations limit the use of family stock discounts, cautioned Rod Mauszycki, a Minneapolis-based tax principal for CliftonLarsonAllen....]]>
World beef markets and trade expected to grow in 2017 https://wlj.net/article-14-world-beef-markets-and-trade-expected-to-grow-in-2017.html World beef markets and trade expected to grow in 2017
The latest global meat trade estimates from the USDA Foreign Agricultural Service indicate that beef production and consumption among major beef countries is growing in 2016 and is projected to grow additionally in 2017. Aside from the U.S....]]>
Fixed cash leases majority of farmland rental contracts https://wlj.net/article-14-fixed-cash-leases-majority-of-farmland-rental-contracts.html Fixed cash leases majority of farmland rental contracts
In the contiguous 48 states, about 354 million acres (or 39 percent) of U.S. farmland were rented in 2014. Eighty percent of that rented land was owned by nonoperator landlords who are not actively engaged in a farm operation, while the remainder was rented from one farm operator to another....]]>
Examining a tale of two feeder cattle markets https://wlj.net/article-14-examining-a-tale-of-two-feeder-cattle-markets.html Examining a tale of two feeder cattle markets
Very unusual feeder cattle markets have developed this fall. The calf and stocker market has been sharply divided from the market for heavy feeder cattle. The attached summary in Table 1 shows prices, values and value of gain for steer prices in Oklahoma in the past five weeks....]]>
Midsize farms are centrally located https://wlj.net/article-14-midsize-farms-are-centrally-located.html Midsize farms are centrally located
Midsize farms, those with gross cash farm income (GCFI) between $350,000 and $1 million, represent an important link in the chain of family farms. Many U.S. midsize farms start out as successful small commercial farms, and as many as 15 percent of today’s midsize farms will become tomorrow’s large farms....]]>
September results show strong third quarter for red meat exports https://wlj.net/article-14-september-results-show-strong-third-quarter-for-red-meat-exports.html September results show strong third quarter for red meat exports
Third-quarter volume was 307,383 mt, the largest since the fourth quarter of 2014. For January through September, export volume was 8 percent above last year’s pace at 848,930 mt. September export value was up 17 percent from a year ago to $533.3 million....]]>
All market prices improve https://wlj.net/article-14-all-market-prices-improve.html All market prices improve
By close of trade Thursday afternoon, over 53,000 head had been confirmed sold. Prices reported on Thursday—$102-105 live and $162-164 dressed—maintained the recent trend of the Fed Cattle Exchange setting the high for the week.


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Raising vs. buying heifers for herd replacements https://wlj.net/article-14-raising-vs-buying-heifers-for-herd-replacements.html Raising vs. buying heifers for herd replacements
“Some extra homework needs to be done this year to ensure profitability, explains Taylor Grussing, South Dakota State University (SD- SU) Extension Cow/Calf Field Specialist. “With the forecast for low cattle and crop prices to continue for one year or more, taking time to compare the advantages and disadvantages of raising replacements vs....]]>
Look into using opportunities for your farm tax returns https://wlj.net/article-14-look-into-using-opportunities-for-your-farm-tax-returns.html Look into using opportunities for your farm tax returns
Generally, if a 1040 has a business loss that drives the return into negative territory, the net operating loss can be carried back two years (i.e., a 2016 tax loss carries first to 2014, then forward to 2015, and if large enough, onward to 2017, etc.). But if the loss arises from a farming business, a special five-year carryback applies....]]>
Markets looking up after Cattle on Feed https://wlj.net/article-14-markets-looking-up-after-cattle-on-feed.html Markets looking up after Cattle on Feed

Over 11,000 head were offered and just under 9,500 head sold on the digital auction at prices well above the prior week at $103-104.75. One small lot of heifers sold for $98, even this being only slightly under the prior week’s average on live cattle.



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