Loading…
Analyst Nevil Speer argues that feeder cattle are priced off deferred live cattle futures rather than current cash prices. The CME feeder index has averaged about $30 above the deferred live cattle contract over the past four years.
He frames this spread as a practical starting point for pricing feeders.
The fixed spread gives buyers a method for projecting feeder prices from the deferred fed contract, which affects feeder procurement costs.
beefmagazine.comBeef MagazineFeb 1, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
