Unimpressed, CME live cattle futures are trading begrudgingly discount illustrating zero confidence that this week’s cash trade is anything but a fluke, believing instead that +$170 cannot be sustained going forward.
That is (almost) absolutely correct and the proper reply is, “So what?”
Demand Bear Lament
Unimpressed, CME live cattle futures are trading begrudgingly discount illustrating zero confidence that this week’s cash trade is anything but a fluke, believing instead that +$170 cannot be sustained going forward. In December it was the “big cattle on the front end coupled with small kills” argument contributing to bearish analysis but after this week’s difficulty securing “enough” market ready fed cattle with the grip of winter felt widely, it’s now, pretty much hands down, a demand bear lament.
The demand bear argument was a failed one in 2014 but since the various segments of this market- feeder, fed, wholesale and retail- are 10-30% higher than a year ago, it seems a safe and even logical bet for 2015.
Time to Restock
But January is a time of restocking depleted inventories for end users, changing the mix in the retail case with a greater emphasis on ground beef. As unhappy as the end user may be with a resumption of the uptrend in beef and cattle prices, offerings are limited and there is little choice but to pay up or do without. The “Super Bowl” effect was bullishly notable last year and will likely have influence this year too.
Brisk Negotiated Trade
Clean up at the feedyard level is said to be very good this week with the negotiated trade volume between 80k and 90k head up at least 20k from last week and putting packers in better shape than they were but not full. Expectations for this week’s kill were 550-555k area but have slipped to sub-550k with rumors of one major packer running reduced hours.
CME Feeders Hold Gain While Fats Fail Again
Feeder cattle futures are also trading big discount, trailing the CME feeder index by $7 or more yet holding their triple digit gains today despite another sell-off in Feb and Apr LC. Feb LC finally managed to make a new high for the week only to fail yet again and dive back under $166 for the seventh trading day in a row. Is the market topping or coiling for another cash led push next week? As early as it is in January, it’s dangerous to underestimate the cash cattle or boxed beef market.
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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.