# Understanding the forward curve in the futures market - Canadian Cattlemen

> Jerry Klassen notes feeder cattle prices strengthened through fall 2017, leaving feedlot margins snug across weight classes. On December 1, 2017, the October live cattle futures traded about $10.52 under April, an inverted structure, while feeder futures stayed relatively flat. He says the futures curve points to price direction over the next six to eight months.

- Date: 2018-01-09 · published 2018-01-09T12:00:00.000Z
- Category: market · region North America · magnitude low
- Page: https://feedsoft.ai/events/67095-understanding-the-forward-curve-in-the-futures-market-canadian-cattlemen
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

The inverted live cattle curve and flat feeder curve signal the market expects softer fed cattle prices later in 2018. Feeders are priced out of line with fed cattle, which squeezes backgrounding and feedlot margins.

## Read by commodity

- FCATTLE: neutral
- LCATTLE: neutral

## Sources

- canadiancattlemen.ca: https://www.canadiancattlemen.ca/market-talk/understanding-the-forward-curve-in-the-futures-market/

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