CoBank Quarterly: Inflation is Beginning to Loosen its Grip
down. But with the unemployment rate at a “The economic cracks that emerged in late 53-year low and inflation trending lower, 2022 in housing and tech are beginning to forecasts are turning at least a little less spread to manufacturing, finance and retail,” gloomy. said Dan Kowalski, vice president of U.S. consumers are still spending but CoBank’s Knowledge Exchange division. doing so by increasing dependence on credit. “These sectors are showing signs of weakness They are also finally pushing back on price but not to the degree of pointing to an immiincreases on goods, a response to continuous nent recession. Manufacturing and retail are he U.S. economy will progressively slow declines in real wages and dwindling both undergoing a normalization phase as through the first half of 2023 and fears reserves of pandemic savings. Like consum- pandemic consumption of goods has shifted of a recession are still high, and still ers, businesses economy-wide are also to post-pandemic consumption of services.” warranted. Inf lation and interest rate spending more cautiously, according to a The Federal Reserve raised its benchmark increases intended to combat swiftly rising new quarterly report from CoBank’s Knowl- overnight rate by more than 400 basis points prices are behind the broad economic slow- edge Exchange. in 2022 and it is not finished hiking. The Fed has made it clear it is focused less on headline inflation and more squarely on the labor market and core services inflation excluding housing. With job growth far outpacing the st Annual availability of workers, the scarcity of labor 1 4 is cause for concern, especially for the services sector. China’s abrupt reversal of its zero-COVID policy is unleashing the full brunt of the virus. The humanitarian toll has been severe. Little data is coming out of China, but reports have estimated that in some regions BULL SALE up to 75 percent of the labor force has been infected — forcing shutdowns at manufacSATURDAY, MARCH 18, 2023 turing plants and causing major delays in SANFORD, COLORADO · AT THE RANCH · 1pm trucking and at ports. U.S. exporters are Guest consignor: Cimarron Angus feeling the impacts now, as supply chain “New Name, New problems have been preventing the movement of many goods into and around China. Location, Same Faces,
T
Reynolds Land & Cattle Still a Breed Apart”
Bulls out of top A.I Sires in the Country We have semen available on a select group of our Herd Bulls. Contact us for semen pricing.
RODZ EXACT TIME 131E, Son of RODZ ABOUT TIME 126A, sold in a previous sale to John George. Many herd sires like Exact Time will sell.
40+
SELLING
70 BULLS Including:
Registered Performance Tested, High Altitude, PAP Tested Bulls
REGISTERED HIGH ALTITUDE LIMOUSIN, LIMFLEX, ANGUS, & SIMCROSS
20
TwoYear-Olds
50
Yearlings
AND 10 REGISTERED YEARLING LIMOUSIN & LIMFLEX HEIFERS
YEARS of AI. Our Limousin have a Brown Swiss background that results in greater maternal ability, growth and good dispositions. Our mother cows are selected for their ability to work at high altitude and to wean a growthy calf under range conditions.
50
YEARS OF PRODUCING HIGH QUALITY BULLS
Lunch will be served at the Ranch. Sale Catalogs available on request. Airport only 14 miles from Ranch.
Sale will be available on DVAUCTION if you cannot attend
NEW SALE LOCATION IS: 17463 County Road 19 Sanford, Co 81151 NEW RANCH NAME: Reynolds Land and Cattle Rod Cell: (719) 588-1230 • Troy Cell: (719) 580-1308 WWW.REYNOLDSLANDANDCATTLE.COM reynolds_showcattle@yahoo.com
30
FEBRUARY 2023
Grains, Farm Supply & Biofuels Grain markets balanced several challenges in the fourth quarter, from the war in Ukraine and economic slowdowns in China and Europe to interest rate hikes in the U.S. and other developed economies. The continuation of these factors and La Nina weather conditions into 2023 will likely put pressure on grain storage and merchandising margins. Stocks-to-use ratios for corn, soybeans and wheat finished 2022 at multi-year lows driven by strong domestic demand. For the second year in a row, ag retailers posted exceptionally strong revenue and profit growth, driven by sturdy grain market fundamentals. Interestingly, despite high spring demand and tight global supplies, fertilizer prices declined during the fourth quarter amid falling prices for natural gas. While the farm supply sector begins 2023 on strong financial footing, rising wages, higher interest rates and continued high transportation costs are likely to tighten margins. Ethanol production in the fourth quarter nearly caught up to pre-COVID levels, avercontinued on page 32 >>