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Despite yesterday’s bullish action in CME cattle futures the bears are still around pointing quickly to the drop in open interest on yesterday’s rally as a sign this rally has short, rather than long legs. Indeed, OI made a new low for the move, dropping 1.8k contracts though it was the final open interest adjustment of options expiration that was really the culprit, taking 9k out of Friday’s OI. Given the huge sell-off coming into options expiration, not a surprise nor perhaps not the as bearish as being spun.A Handbook for Ranch Managers

Will OI Recover?

There is concern being voiced by some traders as to what it will take to rebuild OI in LC futures, with the coming demise of the pit and the general spurning of commodities by the big money. Additionally, lots of short hedgers now lay off risk with the packer in the form of forward contracts. Though the concern is warranted, it will take time to determine if the liquidity and some might argue, viability of the CME cattle contract is at risk.Environmental & Natural Resource Economics: The Austrian View

  Boxes Finding a Bottom

Boxed beef prices also dropped yesterday, taking out the December low finally, dipping to the lowest level since October. The real take on the boxes though is that a few residual items are cleaning up and the next move is higher. Seasonal lows are close by for the chuck and the round and the rib and loin have held remarkably well recently. Given that the select steer and heifer cutout is only a $1.19 premium to the cutter cow cutout is quite supportive for end primals.

The Betrayed: On Warriors, Cowboys and Other Misfits    Combat Shooter's Handbook         Cash Still King

The real player in today’s market continues to be the fed cattle market. Showlists dropped dramatically this week, packers have used up many of their Feb contracts and need inventory. Tops bids yesterday were in the $1.50 over area and packers are faced with the unhappy task of buying a loser. Look for kill cuts and improving boxed beef prices the rest of this month.

  Feb LC Back in the Lead

The Essence of Liberty: Volume I: Liberty and History: The Rise and Fall of the Noble Experiment with Constitutionally Limited Government (Liberty and ... Limited Government) (Volume 1)  The Essence of Liberty: Volume II: The Economics of Liberty (Volume 2) The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3) Only Feb LC is hanging on to its gains today. After a limit-up move yesterday, Apr LC has traded both sides today in turnaround Tuesday style. Feeders are losing to fats, but given the lost confidence and potential for cattle feeding losses, that’s not a surprise either. Leaving this market with “the live is the drive” as its mantra, one more time.

The Beef is published by Consolidated Beef Producers…for more info click here.
Disclaimer:  The Beef, CBP nor Cassie Fish shall not be liable for decisions or actions taken based on the data/information/opinions.


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Planned Grazing: A Study Guide and Reference ManualPlanned Grazing: A Study Guide and Reference Manual. This is the ideal squeal to A Handbook for Ranch Managers.  Although the ecological principles remain the same, what was originally known as “The Savory Grazing Method” now answers to a multitude of different names: ranching for profit, holistic management, managed grazing, mob grazing, management intensive grazing, etc. Land & Livestock International, Inc. uses “Restoration Grazing” under its “Managing the Ranch as a Business” program.” No mater what you call it, this summary and synopsis will guide you step by step through the process and teach you how to use it as it was originally intended. No more excuses for failing to complete your grazing plans.


About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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