Live Cattle

Discussion in 'Commodity Futures' started by criveratrading, Apr 3, 2007.

  1. So this is the situation as I see it:

    Beef production running above last year
    Cutout prices 12% higher than last year
    Summer/Fall futures in the mid high 90's versus 80's

    The only thing I can factor in is that feedlots are running thin placements b/c of worries of cost of gain b/c of corn and replacement feeders are scarce.

    Winter also put a crimp on market ready supplies as the cold made weight gain more burdensome for cattle.

    But - placements for last month were above expectations as high live cattle prices spurred putting animals on feed and b/c corn was basically flat to down.

    Now, corn selling off 50 cents plus should spur more purchases of feeders and hence increase placements into feedlots.

    All in I see higher placements, more market ready supplies and lower live cattle prices going into summer and fall.

    So; why do we have cattle futures in the high 90's ?
     
  2. Because markets are highly random
     
  3. i think 4/20 Cattle on Feed report will show a change of pattern with heavier placements. let's see.