# Feeder Cattle Future Price Spreads: Opportunities to Hedge? | Ohio BEEF Cattle Letter

> Feeder cattle futures spreads across all months have recovered to near pre-COVID levels as quarantine restrictions and packing plant capacity issues have largely been resolved. Pasture conditions have deteriorated, with the share rated poor or very poor rising since late May and running well worse than the five-year average, driven by drought spreading from the Southwest into the Great Plains. The author notes producers may need to market weaned calves earlier or winter them.

- Date: 2020-07-29 · published 2020-07-29T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/52254-feeder-cattle-future-price-spreads-opportunities-to-hedge-ohio-beef-cattle
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

Deteriorating pasture forces earlier calf sales and adds supply to feeder markets, which could pressure prices, while cheaper corn would support feedlot margins. Producers can use futures spreads to lock in margins.

## Read by commodity

- FCATTLE: neutral
- LCATTLE: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| FCATTLE | 2022-03-01 | [National feeder and stocker cattle report \| Capital Press](https://feedsoft.ai/events/42438-national-feeder-and-stocker-cattle-report-capital-press.md) | -2.0% | -1.0% |
| FCATTLE | 2021-02-08 | [National feeder and stocker cattle report \| Capital Press](https://feedsoft.ai/events/48788-national-feeder-and-stocker-cattle-report-capital-press.md) | +1.9% | -2.1% |
| FCATTLE | 2019-03-02 | [Fed cattle prices climb](https://feedsoft.ai/events/60221-fed-cattle-prices-climb.md) | +1.9% | +2.9% |
| FCATTLE | 2021-10-18 | [Cow-Calf Corner: Higher feed prices this winter - Texas & Southwestern Cattle Raisers Association](https://feedsoft.ai/events/44688-cow-calf-corner-higher-feed-prices-this-winter-texas-and-southwestern-cattle.md) | -1.4% | -0.8% |
| FCATTLE | 2021-10-18 | [Higher feed prices this winter](https://feedsoft.ai/events/44681-higher-feed-prices-this-winter.md) | -1.4% | -0.8% |
| LCATTLE | 2018-10-08 | [Development of wheat pasture could mute seasonal low of feeder cattle prices \| Oklahoma State University](https://feedsoft.ai/events/62697-development-of-wheat-pasture-could-mute-seasonal-low-of-feeder-cattle-prices.md) | -0.5% | +2.9% |
| LCATTLE | 2021-02-08 | [National feeder and stocker cattle report \| Capital Press](https://feedsoft.ai/events/48788-national-feeder-and-stocker-cattle-report-capital-press.md) | +0.7% | +1.7% |
| LCATTLE | 2023-10-24 | [Beef prices have barely moved at the supermarket, frustrating farmers copping cattle price crash - ABC News](https://feedsoft.ai/events/10315-beef-prices-have-barely-moved-at-the-supermarket-frustrating-farmers-copping.md) | +1.1% | -3.0% |

## Sources

- u.osu.edu: https://u.osu.edu/beef/2020/07/29/feeder-cattle-future-price-spreads-opportunities-to-hedge/

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