But all you guys have them hedged, right?
The bearish tag team event continues, with boxed beef prices picking up steam on the down chasing cash fed cattle and live cattle futures lower. In one week, choice boxes have dropped +$15 as push lists grow and buyers scatter.
Difficulty in getting inventory sold currently exists throughout the supply chain—from cow/calf rancher, to stocker, to cattle feeder to packer. There is resistance at all levels by buyers. Even more troubling for cattle feeders is once cattle are sold, it’s taking 2-4 weeks to get them dead and the carcass weights grow larger daily.
The choice cutout is now approaching the $210 area, the February 2014 low but since packers have been successful buying cattle lower each day, profits are still intact in that industry segment. The rest of the beef industry is being hit with staggering losses not seen in years.
Last week’s 576,000 head kill, the largest of 2015, is expected to be modestly curtailed this week to the 560k-570k range. Next week there is talk of a few cooler cleanings and a kill in the 550K-560k area.
Futures Volume Surges
Futures locked limit down yesterday and have expanded limits today which haven’t been used. Futures volume has been huge today, well over 60,000 contracts already when it’s been taking an entire day of trading to reach 60,000. That big volume smells of a flush and a much-eyed cycle low is on next week’s horizon. This raises the recurring question of whether a bottom is in reach.
Cash cattle prices have traded dollars lower this week with heavies in, heavies out, freight in, freight out- so many deals that where the market is relative to Oct LC is a little fuzzy. The highest fed cattle have traded at $130 in the west this week but it’s the Corn Belt that remains the lowest value region. And the debate about how many “too big” cattle are left rages on. First notice day for deliveries against Oct LC is October 5. Perhaps there will be a lack of tenders and that will provide the market with a big relief rally. By then, the cutout should have found a bottom as well. Maybe the market will start to anticipate better news soon. Let’s just hope reality delivers.
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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.