CME cattle futures are chopping quietly, posting an inside day so far, waiting for the cash fed cattle trade to get fully underway. Though packers have bid steady to higher in many spots this week, they have been unable to jar any cattle loose as cattle feeders continue to hold out
CMEChoice boxes which printed lower yesterday are still higher on the week but thus far feel a bit sluggish. Wish no oomph from the beef demand side as of yet, packers are less incentivized to get aggressive on paying up big again this week for cattle after doing so last week. Of course, even light fed production schedules need to be supplied and packers don’t own enough cattle without competing this week to get next week’s kill filled.
Cattle futures continue to refuse to anticipate better cattle news influenced in part by the woes of global commodity prices are being lamented by CNBC to Bloomberg to every market analyst from London to Shanghai. Some commodities are at 6 year lows and fears about the Asian economy, particularly the powerhouse China are growing, not lessening.
Still, tight supplies still count for something in the real world and even as companies keep adjusting for more beef supply contraction and attempting to manage margins, the challenge is great. Knowing something is different than making decisions on how to survive and even prosper.
Whether a cattle feeder determining what to pay for scarce replacements when the live cattle futures market offers a bleak outlook or a packer faced with shortages in every region, the doom and gloom commodity environment, strong U.S. dollar and global economic weakness is making a difficult situation even tougher.
Cattle futures have zero risk premium priced. Cattle feeders are worried futures might break and packers and end users pray it does. It is truly remarkable that fourth quarter futures prices are priced $10-12 short of even an average seasonal rally, let alone an above-average one. This when the supply outlook is unprecedentedly bullish. Instead futures want to take the “show me” route leaving it up to price discovery in the cash market to show the way.
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A Handbook for Ranch Managers. In keeping with the “holistic” idea that the land, the livestock, the people and the money should be viewed as a single integrated whole: Part I deals with the management of the natural resources. Part II covers livestock production and Part III deals with the people and the money. Not only would this book make an excellent basic text for a university program in Ranch Management, no professional ranch manager’s reference bookshelf should be without it. It is a comprehensive reference manual for managing the working ranch. The information in the appendices and extensive bibliography alone is worth the price of the book.
You might be interested in this books supplement: Planned Grazing: A Study Guide and Reference Manual.