Volumes Tiny

By Cassie Fish, CassandraFish.com via The Beef

A Handbook for Ranch Managers Whether boxed beef, negotiated fed cattle or CME live cattle futures, volumes have dropped to very low levels. In the case of the
negotiated trade last week, it was the second smallest volume in 2015 and the third smallest in history, just under 36k. But despite the small movement, prices only averaged 0.63 lower.

Planned Grazing: A Study Guide and Reference Manual Packers are posturing to try and buy cattle lower since producers carried over cattle. But just as true is the fact that packers will need to reload inventory after last week’s small buy. When it’s all said and done, cattle may very likely trade steady with last week, $150-151 and $238+ north.

2015-08-18_chart

Boxed Beef Volume Small Too

Environmental & Natural Resource Economics: The Austrian ViewYesterday’s USDA comprehensive boxed beef report showed last week was a miserably slow week of selling boxes in every category except formula, the fifth lowest total volume of 2015. True, production is small, but export sales continue to erode and there appears
to be no enthusiasm for booking out-front either.

2015-05-19_Chart1

Combat Shooter's Handbook Reconnaissance Marine MCI 03.32f: Marine Corps Institute The Betrayed: On Warriors, Cowboys and Other MisfitsWith the comprehensive cutout lagging the spot cutout, it appears packer margins weren’t quite as good as thought last week, but are likely slightly positive.

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)Beef business can certainly pick up this week and there are some that expect boxed beef values to work higher into next week, which would be normal seasonally.

Futures Volume Small; Open Interest Keeps Eroding

Yesterday’s volume was just over 30k in CME live cattle futures and OI dropped to 227,622 contracts, another new low and the lowest since 2009 as more traders exit, tired of the choppy action.

Where Did the Interest Go?

The small volumes in all segments illustrate the lack of market momentum more clearly than words. There may be too few cattle to
break the market significantly but there are a variety of factors that, at least for today, are limiting the likelihood of a big rally. Sometimes choppy markets beget choppy markets as traders look elsewhere for trend.

More than likely, the market will start to pick up as the calendar turns to October, better seasonal beef demand and the possibility of an over-due tough winter. There is also the strong possibility imports from Australia will slow by then. But this is a market focused on today not tomorrow and for today, urgency is far removed as everyone pares down inventories or trading positions.

Copyright © 2015 The Beef Read. All rights reserved.
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.

A Handbook for Ranch ManagersA 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 also be interested in the supplement to this Handbook: Planned Grazing: A Study Guide and Reference Manual.

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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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