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Texas Daily Ag Market News Summary 11/01/17

Posted 355 days ago ago by Texas Department of Agriculture

Feeder cattle auctions higher; Futures higher.

Fed cattle cash trade active; Formula trades higher; Futures higher; Beef prices higher.

Cotton futures lower.

Grains and soybeans lower.

Milk futures higher.

Crude oil lower; Natural gas lower.

Stock markets higher.

                              

 

Texas feeder cattle auctions were higher, reporting prices steady to $5 higher. November Feeder cattle futures were 28 cents higher, closing at $159.70 per hundredweight (cwt). The Texas fed cattle cash trade was active today, closing at $120.00 per cwt. December Fed cattle futures were 98 cents higher, closing at $159.70 per cwt. Wholesale boxed beef values were higher, with Choice grade gaining $4.07 to close at $207.39 per cwt and Select grade gaining 7 cents to close at $193.71 per cwt. Estimated cattle harvest for the week totaled 349,000 up 3,000 last week’s and last year’s total. Year-to-date harvest is up 0.9%.

 

Cotton prices were uneven with cash prices holding steady to remain at 68.50 cents per pound and December cotton futures losing 0.21 cents to close at 68.17 cents per pound.

 

Corn prices were higher with cash prices and December futures both gaining 2 cents to close at $3.50 per bushel and $3.48 per bushel, respectively. Grain Sorghum cash prices were 4 cents higher to close at $5.42 per cwt.

 

Wheat prices were lower with cash prices and December futures both losing a penny to close at $3.51 per bushel and $4.16 per bushel, respectively.

 

Milk prices were higher with November Class III milk gaining a nickel to close at $16.63 per cwt.

 

Stock markets closed higher today, starting November in positive territory, after The Fed announced that it will be leaving short term interest rates unchanged for a little bit longer, but could potentially raise them before the year ends. December Crude oil futures were 8 cents lower, to close at $54.30 per barrel. Crude oil prices started the month in negative territory, after storage data released showed that inventories declined by less than was originally expected.

 

Daily Market News Summary Data 11/01/17

 

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From Agri-Pulse:

WASHINGTON, Oct. 29, 2017 - House Republicans reveal the details of their tax reform plan this week as GOP leaders mount an ambitious pre-Thanksgiving campaign to get tax bills through both chambers before the holiday.

 

The House Ways and Means Committee plans to release its proposal on Wednesday and move it through the panel the week of Nov. 6. The Senate GOP schedule is a week behind the House. 

 

The House bill’s authors have been keeping tight wraps on key details of the tax reform plan that will be critical to agriculture, including new rules for pass-through businesses and the fate of the estate tax and Section 1031 property exchanges.

 

Ways and Means Chairman Kevin Brady, R-Texas, said the GOP plan would overhaul a “miserably uncompetitive tax code and reinvigorate America’s economy – so our local businesses can grow and create more jobs, our workers can finally get a pay raise, and our families can keep more of what they earn.”

 

But there is concern that the provisions for pass-through businesses - sole proprietorships, partnerships and S-corporations - could backfire on farmers. Republicans want to lower the top tax rate for pass-throughs to 25 percent while imposing new rules, or “guardrails,” to prevent wealthy individuals from creating pass-throughs to lower their tax bills.

 

One idea that’s been on the table for limiting the use of the lower rate - deeming 70 percent of pass-through income to be wages rather than business profits - could significantly increase farmers’ taxes, said Paul Neiffer, an agricultural accountant based in Washington state.

 

The ranking Democrat on the House Agriculture Committee, Rep. Collin Peterson, who was an accountant before he came to Congress, said he warned Ivanka Trump in a recent meeting that the pass-through rules could create “the biggest tax shelter industry this country has ever seen” as entities seek to ensure income can qualify for the top rate on pass-throughs. 

 

Other ideas that have raised concerns among agriculture interests include ending 1031 exchanges and limiting the use of stepped-up basis on inherited assets if the estate tax is repealed

 

Also this week, Agriculture Secretary Sonny Perdue heads to Omaha to swear in Nebraska’s agriculture director, Greg Ibach, as USDA’s undersecretary for marketing and regulatory programs. 

 

The Senate confirmed Ibach by voice vote on Thursday, but GOP leaders had to put off action on a companion nominee, Iowa Agriculture Secretary Bill Northey. Sen. Ted Cruz, R-Texas, put a hold on Northey’s nomination as undersecretary for farm and foreign agricultural services in response to commitments that the Trump administration made recently to Iowa political leaders on the Renewable Fuel Standard. 

 

Cruz and eight colleagues have been demanding a meeting with administration officials to discuss the RFS issues. 

 

Northey has run into no opposition to his nomination other than Cruz’ hold, which is unrelated to Northey or USDA. A lobbyist with ties to Texas agriculture said Northey has “real credibility” with that state’s farmers.

  

The House this week will be debating reforms to Forest Service management that would accelerate approval of logging plans by providing some new exclusions from the National Environmental Policy Act.

 

The Forest Service should use these exemptions “to expedite projects on forests that are identified as being at immediate risk of severe wildfire, insects and disease, as well as to protect watersheds, remove hazard trees that threaten public safety, and enhance wildlife habitat and to quickly rehabilitate a forest after a fire,” Nick Smith, executive director of the Healthy Forests, Healthy Communities coalition, wrote in The Hill

 

The Resilient Federal Forests Act also would ease budget pressures by allowing the president to deem major wildfires to be a natural disaster, freeing up funding for fire suppression.

 

Some minor bills the House is expected to approve on Tuesday include the South Carolina Peanut Parity Act, which would  add South Carolina to the Virginia-Carolina peanut-producing region for the purpose of appointing members to the Peanut Standards Board. 

 

The National Forest System Vegetation Management Pilot Program Act would allow the Forest Service to undertake limited vegetation management near utility infrastructure outside of a right-of-way.

 

Here’s a list of agriculture- or rural-related events scheduled for this week in Washington and elsewhere:

 

Monday, Oct. 30

Agriculture Secretary Sonny Perdue swears in Greg Ibach as undersecretary for marketing and regulatory programs, Omaha, Neb. 

National Milk Producers Federation annual meeting, through Wednesday, Anaheim, Calif.

4 p.m. - USDA releases weekly Crop Progress report.

 

Tuesday, Oct. 31

National Organic Standards Board Fall meeting. Tuesday, October 31, 2017 - 8:30am to Thursday, November 2, 2017 - 6:00pm, Jacksonville, Florida.

5 p.m. - House Rules Committee meeting on the Resilient Federal Forests Act of 2017, H-313 Capitol.

 

Wednesday, Nov. 1

National Chicken Council annual conference, though Thursday, The Four Seasons. 

9 a.m. - Farm Foundation forum,  “A New Paradigm for Conservation Work,” National Press Club. 

 

Thursday, Nov. 2

8:30 a.m. - USDA releases Weekly Export Sales report.

10 a.m. - House Science, Space and Technology subcommittee hearing on agricultural research, 2318 Rayburn.

10:15 a.m. - House Energy and Commerce subcommittee hearing on the Federal Select Agent Program oversight of dangerous pathogens

 

Friday, Nov. 3

1 p..m. - FDA Commissioner Scott Gottlieb speaks at the National Press Club.