By Cassie Fish, CassandraFish.com
It’s been a quiet week as CME cattle futures keep chopping, boxed beef values keep rallying and a smattering of very light direct cash trade has occurred steady to higher, $238-240 in the Corn Belt. Choice boxed prices are on their way to the mid to upper $240s. A regional packer is bidding $238 in eastern Nebraska this morning and the small fed cattle auctions around this week have all been higher and major packers have been represented.
CME live cattle futures, fairly overbought by technical measurements, have been very lightly traded as of late and seem to be drawing some profit-taking today taking the market to a new low for the week. For a change, feeders are gaining on fats and Dec and Feb LC are gaining on Oct LC. Oct LC, where the bulk of the open interest resides, has lost a buck today. Perhaps the already short managed funds are adding to their shorts as well.
Some traders may be playing for a technical correction here but there’s nothing bearish fundamentally in the market outlook, certainly no new news. With futures discount to cash, unless a logical argument can be made for a sustainable break in cash prices, the downside risk in futures is limited now that the market is post-seasonal low.
As lousy as Oct LC acts today, Aug LC is holding pretty well and the Aug/Oct LC spreads continues to widen, nearing $1.50 premium. With OI under 14k, Aug LC has become the only honest futures month, influenced not by fear and funds but instead by tight fed cattle supplies and increasing wholesale beef prices.
Big USDA Report Due This Morning
What tends to be the biggest crop report of the year is set to be released today at 11 a.m. Watch for short-term fireworks as computer- generated orders takeover the marketplace for 3-5 minutes while mere mortals read the numbers and work their calculators. Whether bullish or bearish today, the USDA’s numbers will lessen in importance as combines roll in 2-3 months and actual yield reports influence traders, end users and farmer alike. There are already reports of sub-$3.50 cash corn sales taking place in Nebraska this week as many farmers in that state eye what looks to be record yields in many areas.
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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.