WLJ - Markets https://wlj.net/articles.sec-14-1-markets.html Sat, 01 Oct 16 00:00:00 -0600 en hourly 1 College tuition blues, part II https://wlj.net/article-14-college-tuition-blues-part-ii.html College tuition blues, part II
This continues the discussion that ran in the Aug. 15 issue on tax alternatives to assist with higher education costs. Section 529 college savings plans, already a popular tool for parents and grandparents to invest funds for a youngster’s higher education costs, were recently enhanced by Congress.


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Gains in productivity drive growth in U.S. ag output https://wlj.net/article-14-gains-in-productivity-drive-growth-in-us-ag-output.html Gains in productivity drive growth in U.S. ag output
Improvements in how efficiently inputs are transformed into outputs, known as Total Factor Productivity (TFP), fueled almost all of the output growth. Advancements in technology—such as improvements to machinery, seeds, and farm structures—enabled agricultural TFP to grow an average of 1....]]>
China opens doors to Canada with new beef agreement https://wlj.net/article-14-china-opens-doors-to-canada-with-new-beef-agreement.html China opens doors to Canada with new beef agreement
The announcement of a new agreement that will open China to Canadian beef appears to be a significant development and a sign of a warming political relationship between the two nations, according to officials of the U.S. Meat Export Federation (USMEF), who are interested to see the ramifications of this agreement for U.


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Cash fed cattle hit $100 https://wlj.net/article-14-cash-fed-cattle-hit-%2524100.html Cash fed cattle hit $100
Do you have your market umbrella out? The sky is falling again. The cash fed cattle trade was ugly last week as cash prices again flirted with the $100 point. Trade volume was surprisingly high and sales came surprisingly early. Over 60,000 head had been confirmed sold by close of trade Wednesday at $103-104 live and $160-163 dressed prices.


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Spotlight on economics: monetary policy, commodity prices https://wlj.net/article-14-spotlight-on-economics-monetary-policy-commodity-prices.html Spotlight on economics: monetary policy, commodity prices
Since 1978, the Federal Reserve Bank of Kansas City has hosted an annual economic policy symposium. The event is designed as a forum for central bankers, policy experts and academics to come together to focus on a topic that is not necessarily of immediate concern, but instead looks at future emerging issues and trends.


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Markets move up after China news https://wlj.net/article-14-markets-move-up-after-china-news.html Markets move up after China news
The cash fed trade was almost non-existent ahead of the September Cattle on Feed report last week. By close of trade Thursday, not even 3,000 head had been confirmed sold. On the Fed Cattle Exchange, four lots totaling 775 head of mixed steers and heifers from Kansas sold for $110-110.50.


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Stocker cattle purchase opportunities https://wlj.net/article-14-stocker-cattle-purchase-opportunities.html Stocker cattle purchase opportunities
Stocker producers have numerous decisions to make when purchasing stocker cattle including the weight, gender, and quality of cattle to buy. The appropriate choice for individual producers depends on the objectives of the stocker program and the type of production system.


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Adding value to cull cows https://wlj.net/article-14-adding-value-to-cull-cows.html Adding value to cull cows
Typically the sale of cull cows accounts for 15 to 30 percent of the yearly gross revenues of cow/calf operations in the U.S. Historic cull cow prices over the past 30 years have been the lowest in November, December and January; and at their highest in level in March, April and May.


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Market makes mixed moves https://wlj.net/article-14-market-makes-mixed-moves.html Market makes mixed moves
Cash cattle traders were sitting on their hands last week after the prior week’s precipitous fall. By Thursday afternoon, not even 3,000 head had been reported sold, this not including the almost 1,000 head that sold at auction via the Fed Cattle Exchange.


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International trade role looms large for cattle, beef https://wlj.net/article-14-international-trade-role-looms-large-for-cattle-beef.html International trade role looms large for cattle, beef
Markets work best and most efficiently not by stopping and starting abruptly but by gently tapping the brakes or the accelerator as conditions change. International trade of cattle and beef is a significant buffer that reduces drastic market swings in U.


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Assessing the feedlot profit situation https://wlj.net/article-14-assessing-the-feedlot-profit-situation.html Assessing the feedlot profit situation
Given the multitude of adjustments underway in the cattle markets, it is useful to assess most recent estimates of closeout returns offered in Kansas State University’s (K- State’s) Kansas Feedlot Net Return series to extend understanding of the current situation faced by feedlots.


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Exchange rates and their effect on U.S. sheep industry https://wlj.net/article-14-exchange-rates-and-their-effect-on-us-sheep-industry.html Exchange rates and their effect on U.S. sheep industry
“With the recent news from New Zealand of a drought and the decrease in supplies available to import, as well as the strengthening of the New Zealand dollar against the U.S. dollar, the hope for U.S. producers is that there will be less imports, thus taking the pressure off domestic supply,” Sand said.


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What caused the decline in cash trade? https://wlj.net/article-14-what-caused-the-decline-in-cash-trade.html What caused the decline in cash trade?
But, while potent, auctions are not the only form of cash price discovery. When it comes to the fed cattle markets, auctions are almost unheard of—the Fed Cattle Exchange notwithstanding (see the story on this issue’s cover)—and concern over negotiated cash fed trade grows as its volume declines.


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Consumer demand drives the beef market https://wlj.net/article-14-consumer-demand-drives-the-beef-market.html Consumer demand drives the beef market
Shawn Darcy, NCBA’s Associate Director of Market Research, reported that a slim majority—51 percent according to a recent study by Deloitte—of consumers are starting to consider “evolving drivers” of purchasing decisions as important alongside price and taste.


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Live futures violate $100 level https://wlj.net/article-14-live-futures-violate-%2524100-level.html Live futures violate $100 level
Cash fed cattle trade started up on Wednesday last week, the second day of the short week. Wednesday’s trade saw over 12,000 head sold at $104-106 live and $170 dressed. These numbers represented the low end of the prior week’s ranges.


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Chaotic cattle markets https://wlj.net/article-14-chaotic-cattle-markets.html Chaotic cattle markets

It was more than a bit of a crazy week last week for the markets. Not only did the cash fed cattle market see large volumes of cattle trade every day of the week starting Monday. By close of trade Thursday, over 85,000 head had sold at painful prices..



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Futures markets flirt with July lows https://wlj.net/article-14-futures-markets-flirt-with-july-lows.html Futures markets flirt with July lows
Things were ugly last week, particularly in the cash fed cattle markets. After the prior week’s $118 live and $186 dressed prices, last week’s $113-115 live and $179- 183 dressed prices came as a stinging slap. Analysts had predicted the week would see lower prices, but it’s unclear if they expected things would go that low.


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Fall feeder cattle market prospects https://wlj.net/article-14-fall-feeder-cattle-market-prospects.html Fall feeder cattle market prospects
Changes in feeder cattle prices recently have potential impacts for cow/ calf and stocker producers this fall. Through July and August, prices for heavy feeder cattle have increased relative to lighter weight feeder cattle. Several factors appear to be impacting feeder cattle price relationships.


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Ag exports weaken as U.S. dollar strengthens https://wlj.net/article-14-ag-exports-weaken-as-us-dollar-strengthens.html Ag exports weaken as U.S. dollar strengthens
While other variables—particularly robust income gains in developing countries—supported market growth, an extended period of dollar depreciation during FY2003-14 increased the competitiveness of U.S. exports. Since FY2014, however, U.S.


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Why are wheat futures and the cash prices so far apart? https://wlj.net/article-14-why-are-wheat-futures-and-the-cash-prices-so-far-apart.html Why are wheat futures and the cash prices so far apart?
This year’s abundant hard red winter (HRW) wheat crop, slow export demand, and ample supplies of low-priced feed grains available to compete with wheat for livestock feeding have combined to pull Kansas wheat prices lower this summer.


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Slight pullbacks in live cash, futures markets https://wlj.net/article-14-slight-pullbacks-in-live-cash-futures-markets.html Slight pullbacks in live cash, futures markets

Reality disappointed early-week projections of a strong-steady cash market last week. By close of trade last Thursday, over 78,000 head had been confirmed sold at prices ranging from $116-118.50 live and $185-187 dressed. These levels were down from the prior week’s $117-120 live and $186-188 dressed ranges



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Markets see pull back in cash fed cattle https://wlj.net/article-14-markets-see-pull-back-in-cash-fed-cattle.html Markets see pull back in cash fed cattle
There was a bit of a lull in the markets last week, almost as though the relative revelry of the markets in the last few weeks took a slight breather to look around. Announced changes to the futures market and the anticipation of the August World Agricultural Supply and Demand Estimates report likely clouded the market’s upward momentum.


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First-half volumes ahead of last year https://wlj.net/article-14-first-half-volumes-ahead-of-last-year.html First-half volumes ahead of last year
U.S. red meat exports ended the first half of 2016 on a positive note, as June export values for both beef and pork were the highest of the year. June also marked the second consecutive month of solid year-over-year volume growth, according to statistics released by USDA and compiled by the U.


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Use of crop insurance continues to grow https://wlj.net/article-14-use-of-crop-insurance-continues-to-grow.html Use of crop insurance continues to grow
Passage of the Federal Crop Insurance Reform Act in 1994 led to a spike in the use of crop insurance, reflecting the introduction of low-coverage, fully subsidized Catastrophic Risk Protection Endorsement (CAT) insurance and a temporary requirement that producers obtain insurance coverage to be eligible for other commodity support programs.


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Monetary policy and exchange rates https://wlj.net/article-14-monetary-policy-and-exchange-rates.html Monetary policy and exchange rates
For example, an appreciation of the U.S. dollar (stronger dollar) will increase the price of U.S. exports of currently produced agricultural goods. A depreciation of the U.S. dollar (weaker dollar) will decrease the price of U.S. exports in world markets..


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Remedies to calm those college tuition blues https://wlj.net/article-14-remedies-to-calm-those-college-tuition-blues.html Remedies to calm those college tuition blues
If the student is working on the farm for some part of the year, compensation can be a great tool. The student’s salary isn’t subject to income tax until it exceeds the standard deduction ($6,300 for 2016). Normally, there will be the 15....]]>
Few farms are affected by 2014 Farm Act eligibility income cap https://wlj.net/article-14-few-farms-are-affected-by-2014-farm-act-eligibility-income-cap.html Few farms are affected by 2014 Farm Act eligibility income cap
The 2014 Farm Act revised the maximum income limitations (the income cap) that determine eligibility for most commodity and conservation programs and payments by replacing the separate limits on farm and nonfarm income specified in the 2008 Farm Act with a single total adjusted gross income cap of $900,000....]]>
Yes, it seems we are past the seasonal low https://wlj.net/article-14-yes-it-seems-we-are-past-the-seasonal-low.html Yes, it seems we are past the seasonal low
By the close of trade last Thursday, over 14,000 head had been confirmed sold. This was somewhat light, but still likely sufficient to set the trend for the week. Live cattle traded at $118, above the prior week’s $114-117 range, and dressed cattle sold for $187-188, the upper end of the prior week’s dressed price range.


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Managing beef cow margins: grazing cost https://wlj.net/article-14-managing-beef-cow-margins-grazing-cost.html Managing beef cow margins: grazing cost
the past few months and are expected to remain lower for the next couple of years. Producers must focus more attention on cost management to help maintain net returns in this environment.


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Cattle producers learn how to deal with smaller profit margins https://wlj.net/article-14-cattle-producers-learn-how-to-deal-with-smaller-profit-margins.html Cattle producers learn how to deal with smaller profit margins
“We’ve seen quite a slide, 40 percent, which is quite challenging,” said Gerald Sullivan, who co-owns Santa Rosa Ranch in Navasota and Crockett with his daughter, Kelley Sullivan. “Not everything is bad, not everything is good. We’re also seeing an uptick in per capita consumption of beef.


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