November Cattle Market Price Watch

Dec 19, 2016

The August 2017 Feeder Cattle futures contract increased by $7.66/cwt. during November. Based on this futures price increase, August Feeder Cattle revenues increased by approximately $57.45/head ($7.66/cwt. * 7.5 cwt.) on a 750-pound feeder steer which amounts to $3,830.00/truckload (50,000 lbs.). The August Feeder Cattle futures contract high, contract low, and price range since September 2016 are $128.00, $109.90, and $18.10/cwt., respectively. The price range of $18.10/cwt. on a 750-pound feeder steer totals $135.75/head and $9,050.00/truckload.

Source: ufl.edu

The breakeven price was estimated to be $722.10/hd. or $131.29/cwt. ($722.10/hd. divided by 5.50 cwt.). The breakeven price includes production costs of $705/hd. and death loss of $17.10/hd.
The price objective was estimated to be $872.10/hd. or $158.56/cwt. ($872.10/hd. divided by 5.50 cwt.). The price objective includes production costs of $705/hd., death loss ($17.10/hd.), family living withdrawal ($100/hd.), and growth capital/retirement ($50/hd.).
The expected cash price is equal to the daily August 2017 Feeder Cattle futures closing price, plus an expected August 2017 South Florida 550 lb. Feeder Calf Basis of $2/cwt.

Video: How farmers are protecting the soil and our food security | DW Documentary

For a long time, soil was all but ignored. But for years, the valuable humus layer has been thinning. Farmers in Brandenburg are clearly feeling the effects of this on their sandy fields. Many are now taking steps to prepare their farms for the future.

Years of drought, record rainfall and failed harvests: we are becoming increasingly aware of how sensitively our environment reacts to extreme weather conditions. Farmers' livelihoods are at stake. So is the ability of consumers to afford food.

For a few years now, agriculture that focuses solely on maximum yields has been regarded with increasing skepticism. It is becoming more and more clear just how dependent we are on healthy soils.

Brandenburg is the federal state with the worst soil quality in Germany. The already thin, fertile humus layer has been shrinking for decades. Researchers and farmers who are keen to experiment are combating these developments and looking for solutions. Priority is being given to building up the humus layer, which consists of microorganisms and fungi, as well as springtails, small worms and centipedes.

For Lena and Philipp Adler, two young vegetable farmers, the tiny soil creatures are invaluable helpers. On their three-hectare organic farm, they rely on simple, mechanical weed control, fallow areas where the soil can recover, and diversity. Conventional farmer Mark Dümichen also does everything he can to protect soil life on his land. For years, he has not tilled the soil after the harvest and sows directly into the field. His yields have stabilized since he began to work this way.

Isabella Krause from Regionalwert AG Berlin-Brandenburg is convinced after the experiences of the last hot summers that new crops will thrive on Brandenburg's fields in the long term. She has founded a network of farmers who are promoting the cultivation of chickpeas with support from the scientific community.