# An alternative to cash cattle markets - Brownfield Ag News

> Rabobank senior analyst Don Close said a RaboResearch report found that transaction types in the cattle market diverge less once put on a cash-equivalent basis. He argued that the price gap between cutout values and live cattle reflects limited slaughter capacity, which he estimated needs to rise by 4,000 to 5,000 head per day.

- Date: 2021-06-01 · published 2021-06-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/46715-an-alternative-to-cash-cattle-markets-brownfield-ag-news
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Slaughter capacity shortfalls keep packer margins high and live cattle prices below cutout values, so proposals to change pricing methods could alter how feeder cattle are valued over time.

## Read by commodity

- FCATTLE: neutral
- LCATTLE: neutral

## Sources

- brownfieldagnews.com: https://brownfieldagnews.com/news/an-alternative-to-cash-cattle-markets/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.