GFM Network News

A plunging futures market in mid-May caused hedged cattle feeders to sell cattle early at lower prices for three weeks in a row.

Kay: Cattle futures crush the present

Prime Cuts with Steve Kay

Futures markets perform an important role in agricultural markets by allowing producers of key commodities to construct risk management strategies to help them make money. The futures are also anticipatory markets, and these two roles sometimes make for strange bedfellows. Right now in the U.S., the futures market for feeder and live cattle are crushing […] Read more

Constellation of prices for live, feeder cattle futures

Market Talk with Jerry Klassen

The live and feeder cattle futures markets exhibit a behaviour commonly known as “the constellation of prices.” Understanding the price relationship between the live and feeder cattle futures can be invaluable when deciding to market calves or implement some type of hedging strategy using the price insurance. In this article, I’m going to discuss how […] Read more

Understanding the forward curve in the futures market

Market Talk with Jerry Klassen

I’ve received many calls from backgrounding operators and feedlot managers in regard to the feeder cattle market. Prices have strengthened throughout the fall period and it now appears that potential margins will be quite snug for all weight categories. The futures market for live and feeder cattle is reflecting two distinct price structures. Discerning the […] Read more

Market futures compared.

Reading feeder cattle futures markets

Market Talk with Jerry Klassen

The feeder cattle market has experienced unprecedented volatility over the past couple of years. Steers averaging 600 pounds traded for over $300/cwt in September of 2015 but in February this year sold for $198. The erratic price action has caused cattle producers to take more interest in hedging feeder cattle and the Western Livestock Price […] Read more

National hedging plan weighed for hog farmers

If there’s a way for a national-level hedging program to help Canadian hog farmers limit their exposure to hog price volatility, the national hog industry body aims to find it. The Canadian Pork Council on Friday announced it had picked up $169,530 in federal funding for a feasibility study on developing such a hedging program. […] Read more