Howdy & Welcome to Daily LRP!

"We can't predict the price we can only protect it"

This is your one stop to watch the feeder cattle market.

Basis looks a couple different ways

​CME Feeder Cattle Index $251.00 NOV 2024 CME Feeder Cattle Futures $246.35=

+$4.65/CWT Basis (at the end of a month they cash meets the futures)

🚨Here is a new way to look at the numbers
CME Feeder Cattle Index High of all time July 12, 2024 $261.88

November 24 Feeder cattle futures $246.35

+$15.53/CWT basis spread to the all time high.🚨

We are posturing for a decline In the futures. Cash however is very strong for this time of year.

Recommendations: Right now you need to be thinking about your next lock in point. When we start looking at further out keep in mind what it did in 2015!!! When everyone was celebrating the great prices and planning on this market lasting forever the futures slowly slipped. The biggest bang for your buck was in the fall of 2014. Who wanted to even let it cross your mind that 14 market would end. So most just let it ride. They did not have the election cycle like we do. Honestly this race is so tight and many of us have picked sides. With either one wining will effect the markets. The hard part is knowing which way it will fall and will we have time to react. I know I said which way it will fall. If you are not preparing for a economic shake down of some sort, I wish you good luck. The reality is the cattle market is still wonderful and strong. High prices fix high prices and that is reality.


🚨 PLEASE READ CHRIS SWIFT 🚨“Shootin’ The Bull”
End of Day Market Recap
by Christopher Swift
​11/4/2024

Live Cattle:​
With marketing's believed wrapped up tight with put options or options strategies, keeping input costs from reducing margins captured is the focus. Of the two most important are fuel and feed. Although feed is anticipated to rise, it is fuel that is anticipated to soar. I do not have a fundamental reason yet, as it may not have materialized. However, the iron does appear hot due to the middle-east unrest. It is the chart pattern and belief of more inflation that leads me to expect energy to trade higher. As well, the significant gap and lower trading created last week has been voided by end of week higher trading that easily bled into today. So, since you've wrapped up marketing's, I recommend you forward contract spring needs, book spring needs, top off farm tanks or buy call options on the crude oil market. This is a sales solicitation. For corn, it isn't as bullish, but I believe it will be harder for corn to move lower without some form of new supplies, or softer demand. However, if corn doesn't go down, and you are going to have to have it, then I recommend you spend $.22 and own the $4.60 July corn calls and hope you lose 100% of the premium paid. This is a sales solicitation. With the ideas of another bout of inflation on the horizon, we are asking ourselves, "do cattle and beef appreciate with the inflation, or do they depreciate due to impact on consumers resilience?"

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Open interest continues to increase with funds believed owning 1/3 of the long positions, with the build coming after 10/21, and prices below the low made on that day. So, it appears that a large portion of new longs are upside down and shorts not afraid to add to positions.

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Feeder Cattle:​

​There is no difference here. With your marketing's wrapped up, there is margin to protect in feed and fuel. I recommend you do something about it.