Drovers is running a series of articles by agricultural economist and industry consultant Nevil Speer explaining how futures work.  With permission by Drovers, these articles will be edited for space and republished here from time to time over the next several weeks.   STRAIGHT HEDGE EXAMPLE   Some market commentary in early May proclaimed cattle … Read More

Large commodity investment funds, known as managed money, ended a 10-week slide in their collective net long holdings in live cattle futures in the week ended Tuesday. However, it’s not clear whether this will be the extent of their long liquidation as cattle futures prices have made a decisive turn upward, an analyst said. Managed … Read More

The USDA Thursday raised its 2019 red meat and poultry production forecast to 104.517 billion pounds from 104.167 billion last month as higher expected pork and broiler production more than offsets lower beef and turkey production forecasts.  This was a gain of 35 million, or 0.33%. The new predictions came in the monthly World Agricultural … Read More

Ideas that cattle markets have put in an annual bottom may be premature as rising red meat and poultry production keep upping the ante for market share, but maybe not. Fundamental market forces are adding some support to cattle prices, and there is historical precedent for prices to hit a bottom at this time of … Read More

The Livestock Marketing Information Center expects total US red meat and poultry production to continue rising this year, although expected declines in poultry production could limit 2020 gains. LMIC economists took USDA National Agricultural Statistics Service data and extrapolated it to give a quarterly outlook through next year.  Their outlook says beef and pork production … Read More

May exports of US pork and beef were steady with last year’s strong volumes and increased year-over-year in value, putting the volume and value for both at 2019 highs, according to data released by USDA and compiled by the US Meat Export Federation.   BEEF EXPORTS NEAR STEADY WITH 2018   May beef exports were … Read More

Corn prices have increased since mid-May, and Michael Langemeier, agricultural economist at the University of Illinois, expected them to remain quite volatile for the rest of the year. In the Illinois Farmdoc, Langemeier examined the effect of higher corn prices on feeding cost of gain for cattle finishing.  As a rule-of-thumb, each $0.10 increase in … Read More