The wild and whippy trade continues this morning with Dec, Feb and Apr LC making new lows for the move quickly and Dec and Feb trading below the 40-day moving average for the first time since the big August correction, reaching the lowest level since November 7 in most active Feb and over 600 points off of the high. Technically, LC futures are experiencing their biggest correction since mid-October.
There is plenty of banter on the airwaves to drive commodity bulls to the sidelines and amplify any bearish tendencies. Concern that the strongest U.S. dollar since 2010 will slow beef exports; the cheapest crude oil prices since 2010 and talk of even lower prices has fueled deflation concerns.
Beef Cutout in Trouble
Closer to home, there’s growing talk that the rib primal has topped at record prices, while the chuck struggles too, losing over $4 Tuesday afternoon. Yesterday the USDA boxed beef cutout printed lower for the day and from a week ago signaling the seasonal slide in values has begun. A retracement to the $250 area by the end of the month is possible, depending on the magnitude of the rib break.
Cash Cattle Correction Next; Top Talk Back
All this negativity leads to the probability that cash cattle prices are also due a correction off of all-time highs. Some cattle traders might even argue that the highs posted the last couple of weeks were the highs and unless winter weather is severe in Jan/Feb, the market has topped. Record weights and the incentive to continue to create more big cattle coupled with assertions that sky-high retail prices have hurt demand are the driving logic behind “top talk”.
Though with futures trading discount and no blow off in futures, there are other astute traders wary of making such a claim. Irrational exuberance has been noted in the cash feeder cattle market the last couple of weeks, so for some that could be a significant bearish red flag. There’s also a question as to how many fed cattle will be held over into January as fed cattle prices dip and slaughter levels drop.
There really isn’t much argument that live cattle futures selling off in December after making new highs pre-Thanksgiving is anything but expected. The relevant question is where this market finds value on the break. $164.90 was the spot low in November and only a buck above big cash cattle chart support, looking a lot like major long term support.
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Murray N. Rothbard was the father of what some call Radical Libertarianism or Anarcho-Capitalism which Hans-Hermann Hoppe described as “Rothbard’s unique contribution to the rediscovery of property and property rights as the common foundation of both economics and political philosophy, and the systematic reconstruction and conceptual integration of modern, marginalist economics and natural-law political philosophy into a unified moral science: libertarianism.”
This book applies the principles of this “unified moral science” to environmental and natural resource management issues.
The book started out life as an assigned reading list for a university level course entitled Environmental and Natural Resource Economics: The Austrian View.
As I began to prepare to teach the course, I quickly saw that there was a plethora of textbooks suitable for universal level courses dealing with environmental and natural resource economics. The only problem was that they were all based in mainstream neo-classical (or Keynesian) theory. I could find no single collection of material comprising a comprehensive treatment of environmental and natural resource economics based on Austrian Economic Theory.
However, I was able to find a large number of essays, monographs, papers delivered at professional meetings and published from a multitude of sources. This book is the result. It is composed of a collection of research reports and essays by reputable scientists, economists, and legal experts as well as private property and free market activists.
The book is organized into seven parts: I. Environmentalism: The New State Religion; II. The New State Religion Debunked; III. Introduction to Environmental and Natural Resource Economics; IV. Interventionism: Law and Regulation; V. Pollution and Recycling; VI. Property Rights: Planning, Zoning and Eminent Domain; and VII. Free Market Conservation. It also includes an elaborate Bibliography, References and Recommended Reading section including an extensive Annotated Bibliography of related and works on the subject.
The intellectual level of the individual works ranges from quite scholarly to informed editorial opinion.