Cattle Market Lower But Catches

By Cassie Fish, CassandraFish.com

A Handbook for Ranch Managers Worry about the panic sell-off sweeping the globe hummed throughout the weekend. So far though the worst of it was seen immediately after the opening in most U.S. markets, with commodities and equities both clawing back, and in the case of hogs, corn and wheat, to green on the day.

Planned Grazing: A Study Guide and Reference Manual Feeder cattle futures are taking it the worst, limit down Friday and down +$4 in most contracts today while live cattle futures are about 80 off their early low in relatively quiet trade. In early August, there were few who expected cattle futures to take out the July low let alone check the February low but Environmental & Natural Resource Economics: The Austrian Viewindeed, that’s exactly what’s occurred in just a few short recent days. Only spot Aug LC and Aug FC are trading above its July low. Feeders made history of the February lows and made life-of-contract lows in many contracts today pressured by cattle feeding losses and dissipating confidence in the cattle market outlook.

  Other Years; Other Disappointments

Combat Shooter's Handbook Reconnaissance Marine MCI 03.32f: Marine Corps Institute The Betrayed: On Warriors, Cowboys and Other MisfitsThere have been a few other years when August has been a big disappointment. It happened in both 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)2001 and 2008, years when global influences took the market down. It also occurred in 2000 and 2009, though in the latter, it was the end of a downtrend and the birth of a long-term uptrend.

Perhaps the lousy performance in recent weeks is portending more of the same for the fall of 2015. The market structure itself is bearish in tone and price, with Aug LC about $2.50 below last week’s cash average and Oct LC $2.30 below Aug LC. Oct is more than amply compensating for softer cash cattle and boxed beef prices in September.

Is it Friday Yet?

This is the kind of week where it’s more important how we finish Friday, now that the initial panic is over. One eye is on the ags and the other bouncing between the equities and CNBC.

Cattle traders expect boxes to weaken this week and packers to do their best to buy cattle cheaper yet again. Cattle feeders, in turn, will be trying to buy feeders cheaper, if they try very hard to buy any at all.

Numbers- Quickly Forgotten

Friday’s USDA Cattle-on-feed report has already been forgotten, coming in as expected generally although less cattle were placed than expected and total on feed numbers stand 250,000 head more than a year ago. If this year has taught anything, it’s that numbers are secondary.

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.

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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.

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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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