Managed money, another term for large commodity funds, boosted their net long position slightly during the week ended Tuesday, Dec. 1, even though prices were rounding out a nearby high. As of Tuesday, the Commodity Futures Trading Commission’s weekly Commitments Of Traders report Friday reported that managed money held a net long live cattle position … Read More
Feeder/Fed Cattle Price Relationships Adjusting
What a difference a year makes. After last year, when cattle feeding profits were the second largest going back to the early 1970’s, this year will go down as the worst ever for cattle feeders. Economists estimate it will take several years for US feedlots to climb out of this year’s profitability hole, even though … Read More
Beef Byproduct Values Remain Weak
As wholesale beef values remain below expectations, packer incomes are being hampered by lower byproduct values. These products consist of the hide, cheek meat, hearts, livers, tongues, bone meal, tallow and other products and often are the heart of profits for beef packers. Many of the edible items find little value in the US except … Read More
Cattle Basis Not Following The Rules
“Cash is cash and futures is futures” was one of the trading truisms of one old-time lumber trader, and the axiom appears to be alive and well in the current cattle markets as well. The late Tom Martin had many trading rules, most of which were meant to curb his enthusiasm about trading and to … Read More
Cattle Markets Face Uphill Battle
Cattle markets may be in for an uphill battle as slaughter-ready feedlot supplies mount and demand fades, and the current futures price structure may be overdone, analysts say. Currently, live cattle futures prices rise for each successive delivery month through Apr and then drop sharply, and traders are concentrating on moving positions into the Feb … Read More
Funds, Commercials Hold Cattle Positions Steady
Large funds and commercial traders are holding their live cattle net long and net short positions in narrow ranges as nearby contract prices traded in a wide range. Neither has made a significant position change since the week ended Tuesday, Nov. 3. Managed money, a proxy for those large commodity funds, reduced their net long … Read More
Cold, Wet Weather Hits Plains, Midwest
The Thanksgiving Day holiday brought freezing temperatures, rain, ice and snow to much of the central US and into the Midwest, helping the winter wheat but bedeviling cattle. The National Weather Service shows the precipitation over the last 24 hours in the Southern Plains and Western Midwest. Two days ago, this storm was dumping a … Read More