Feeders on fire

Reuters reports feeder cattle (CME:GFK14) futures on Monday clocked a new all-time high for a fourth straight session, partly driven by expectations for tighter numbers of calves ahead, traders said. Feedlots are spending more for calves, or feeder cattle, made scarce after several years of drought in the United States sent the herd to a 63-year low.

Fund buying and lower corn prices contributed to CME feeder cattle advances that some traders believe are close to topping out soon. Despite cheaper corn and higher returns for feeders, feedlots are buying calves at a loss if market-ready cattle prices are unable to move higher, a trader said.

May closed 1.175 cents per lb higher at 188.475 cents, and August ended up 2.875 cents at 196.200.


About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.


Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.

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