# Cattle Futures



## Vol (Jul 5, 2009)

Bloomberg on the record high cattle futures.

Regards, Mike

http://www.agweb.com/article/cattle_futures_reaching_record_signal_higher_us_steak_prices_BLMG/


----------



## Tim/South (Dec 12, 2011)

Cattle futures dropped last week but went limit up yesterday. Last week corn made a gain, this week it lost ground.

I read this morning that feedlot show lists were down 30,000 head compared to last week. Asking price for fats is $1.60.

Unreal.


----------



## PaMike (Dec 7, 2013)

I talked to an old time buyer at breakfast this morning. He said he has never seen it like this. Fat Holsteins are $1.50. He said lighter feeder Holsteins are over $2.00

He said guys cant contract feeders right now to make money, so he isn't sure who is buying these feeder cattle. its going to be some tough decisions soon for some guys. Buy expensive cattle to feed your corn to, or sell the corn at $5.00 a bushel, or less maybe....


----------



## Vol (Jul 5, 2009)

PaMike said:


> its going to be some tough decisions soon for some guys. Buy expensive cattle to feed your corn to, or sell the corn at $5.00 a bushel, or less maybe....


I am thinking alot of fellas are just going to hold their corn for awhile and see what happens.

Regards, Mike


----------



## PaMike (Dec 7, 2013)

Vol said:


> I am thinking alot of fellas are just going to hold their corn for awhile and see what happens.
> 
> Regards, Mike


A guy from work has a dad that is doing that. He bought corn the last time it was at $7.00. Hes now on year two or so and hasnt been able to unload it to get his money out. Most guys can only hold for so long. They need the cash and the space for next year...should be interesting.


----------



## Vol (Jul 5, 2009)

Not talking about buying and holding....I am talking about growing and holding....a lot of difference.

Regards, Mike


----------



## robert23239 (May 10, 2009)

If a skilled buyer cant figure out the market how can anyone ??


----------



## Tim/South (Dec 12, 2011)

robert23239 said:


> If a skilled buyer cant figure out the market how can anyone ??


Skilled buyers, order buyers, do not always know the complete cattle process from birth to the table. They know how to fill orders, they may be an expert in one certain area of the market. They may know stockers or feeders but not both.

I have lunch a couple times a week with 2 order buyers. When they do not have large orders to fill they say there are not enough buyers for the cattle. The companies they are buying for may not need cattle that week but with the shortage there are plenty of buyers. Not how they see it.

We all knew cattle prices would be off some last week. Futures fell on fat cattle. Corn went up. Feedlots held back on replacing cattle they had just sold at break even. No one knew where the market was headed and were cautious.

Both order buyers told me cattle prices had topped and were going to level off and find a bottom.

My opinion to them was that cattle would go up this week and show lists for fats would be down this week and record prices would return. I was again reminded they were professionals and had been doing this for decade.

Lunch will be interesting today.

The show list for fed cattle was down 30,000 this week. Corn lost ground. Fat cattle that sold for $1.54 - $1.56 last week sold for $1.62 and $1.63 this week.

Do I know more than the order buyers? Definitely not.

My information comes from various sources, not from phone calls from those looking to buy cattle.


----------

