futures

[bird dog]

The futures on feeders are getting whacked this morning. Not sure why. It hasn't seemed to effect the local prices yet but I am sure it will at some point.

Futures Feeder Cattle Chart Daily

Stock screener for investors and traders, financial visualizations.

finviz.com

 

[BC]

It is a battle of bulls and bears. The bulls say with a smaller cow herd and fewer cattle, prices should go higher. The bears say we have got the meat as high as consumers will pay. All the slaughter volume is 5 to 6% below last year, yet box beef prices are struggling. To add to the misery is the computer trading programs that kick in. Someone puts in a sell order and finds no buyers and it triggers the computer traders to kick in gear and the futures market plummets. Economists call it a correction.

 

[Logan52]

The opportunity for the smaller independent producer is cash in on any advantage in the market is very limited.
If I understand it, this crash resulted from the large number of of producers using the various forms of long term price protections at a time these were being valued well above the actual cash market. All it took was an elevated COF and some resistance by the consumer to create a panic.
Any better ideas?

 

[Brute 23]

I was going to sell some calves and cows to clean up before winter but got rained out. Sounds like we lucked out.

 

[Dave]

You must have looked too early in the day. By the end of the day the board ended up all in the green.