Live Cattle and Feeder Cattle Limits increased

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mncowboy
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Live Cattle and Feeder Cattle Limits increased

Postby mncowboy » Thu May 04, 2017 2:23 pm

Noticed today the Feeder limits were extended from $4.50 to $6.75 and Fat Cattle increased to $4.50.
Anyone have an opinion if this is good or bad for the producer? I'm thinking it'll only increase the volatility but I may be wrong.
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TennesseeTuxedo
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Re: Live Cattle and Feeder Cattle Limits increased

Postby TennesseeTuxedo » Thu May 04, 2017 3:42 pm

I like it.
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Re: Live Cattle and Feeder Cattle Limits increased

Postby Bigfoot » Thu May 04, 2017 9:55 pm

I'm afraid it gives the desk jockeys even more wiggle room.
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Son of Butch
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Re: Live Cattle and Feeder Cattle Limits increased

Postby Son of Butch » Thu May 04, 2017 10:10 pm

Really doesn't effect a producer not involved in futures, but gives traders and option market timers more risk/reward.
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Re: Live Cattle and Feeder Cattle Limits increased

Postby WalnutCrest » Sat May 06, 2017 8:51 am

More liquidity equates to better prices in average and over time ... because when times are bad, it increases the odds one can get OUT of a position they no longer want to be in.

So, yes, more P/L for the desk jockeys ... but without liquidity (and volatility) there is no price discovery.

This is a good move.
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Re: Live Cattle and Feeder Cattle Limits increased

Postby Stocker Steve » Sat May 06, 2017 12:35 pm

WalnutCrest wrote:without liquidity (and volatility) there is no price discovery. This is a good move.


2X The limit rules changed a couple years ago.

The interesting thing is all the talking heads are not focused on corn and beans. So there are a couple themes on the commodity cattle market currently:

1) no one knows what or why
2) world economy is so good that folks will buy more red meat rather than that nasty white stuff
3) graze out wheat cattle are going to tank the market soon
4) the funds did it
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