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Market Highlights: Cattle Feeders Betting on the Come

Capture3 Packers will likely attempt to manipulate production to maintain strong prices unless the bottom falls out of finished cattle. OUTLOOK: As the month of August winds down, most producers and speculators in the feeder cattle arena will turn their attention to the September, October and November contracts. At this point, it does not matter which contract is being viewed as all three months are trading in about a 50 cent range. Thus, based on futures contracts and traders of futures contracts, the market price is not expected to be any different in November than it is today. This singular piece of information provides pricing opportunities for cattle intended for fall marketing. How this information is used can lead to several different outcomes as it relates to the price received for fall cattle marketings and ultimately profitability.

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