We(Texas) imort all of our grain now. Most of it comes off of the train. Texas weather does not have anything to do with the corn market. Annual rainfall for a big chunk of Texas is 35-40 inches. Not always dry. Large portions of the small Corn crop in Texas is for silage. Good to hear that the corn we'll be feeding appears to be plentiful and in excellent shape.
http://www.cme.com/trading/dta/hist/cash_settled_commodity_prices.html?type=Feeder Cattle Takes a while for this to be updated sometimes.
COF Report 53% of placements were below 700 lbs. Cattle going into feedyards smaller means smaller carcas weights in Nov-Dec-Jan and less cattle to slaughter in the Spring. What is the largest marketing total ever recorded? Anybody know?
joe, but those results are for feeders. where can one see the texas 79-79.5 trade u mentioned in live?
Oh, you said auction. Fat cattle aren't sold at an auction around here. The volume for Texas fat cattle was 30,436. $79 to $79.50.
tks.. so what's ann's profit strategy if this is her take ? Two words, kids: RANDOM WALK. Do any of you out there honestly believe that there are guys in smoke-filled rooms who are accurately forecasting all of this? There aren't. The only way a person can be consistently profitable in the cattle business is to completely turn his back on forecasting. Volatility yields amazing profit opportunity, UNLESS WE TRY TO FORECAST IT. If you try to guess the markets, you will be right back into the breakeven, 50-50 paradigm.
It's all about taking care of equity. She doesn't beleive in borrowed money. She compares what fats bring today against what a calf or feeder cost today. The transfer of equity from one to the other. I think she also trades alot of spreads. She won't elaborate on the spreads on her blog.
so with august futures trading at a steep premium to cash, what sort of convergence if any does one expect ? wouldn't it be of sense to deliver against the august contract rather than sell with this poor basis?