A limit up move yesterday followed by more upside today are a welcome sight for any remaining futures bulls, newly minted longs and cattle feeders. At this time of year, all are aware futures can go premium to cash at any time. So even if cash cattle prices wallow around in the low $140s the rest of the September, no one wants to get caught short if the basis finally makes a definitive move.
The daily technical indicators have turned up and the weekly ones are flirting with confirming a turn up as well. What’s interesting is that this is the second week in a row Oct LC has posted an inside week making taking out, and closing above the high made 2 weeks ago, $144.60, paramount to cinching a bottom here.
For the first time in a month, futures pushed above the 10-day moving average yesterday though the 40-day seems miles away at $145.70. The set-up seems that if Oct LC can close above $144.60 on Friday, then the 40-day might not stop a rally. There was a 3,453 contract increase in OI on yesterday’s LC rally on 60k volume. Another positive to lend credence to the thought process a bottom is in the making.
Feeders Losing to Fats
Feeders are losing to fats today but then the index was in the low $180s in February 2014, the last time fed cattle prices were as low as they were last week. As cattle feeders post losses of +$200 per head week after week, the argument of “there’s no feeders” is wearing as thin as checkbooks.
Transitioning, Transitioning, Transitioning
No doubt the cattle feeder is caught in a miserable double squeeze and there’s enough fed cattle supply in the north available for another 4-6 weeks to make regaining leverage fully a day-by-day challenge.
There’s a few positives. More Saturday kills being scheduled, wheels under plenty of northern cattle to go to Kansas, a big weekend retail beef feature that was fairly successful.
Fundamentally the market is transitioning. Some say it’s the futures market to anticipate and if so it could as dangerous to press futures further as it is to buy a rally- as the cattle market has been known to get very whippy when making a turn.
Such is the quandary of the cattle trader.
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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.