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A technical commentary says feeder cattle offer a reasonable chance to hedge feedyard inputs, and that the wide basis will be closed by futures trading higher if cash does not decline as expected. The author notes feedyards appear to manage weights well while packers may be signaling otherwise.
A wide basis means futures could rally toward cash if cash fails to fall as expected, so feeder buyers should weigh hedging feedyard inputs against that convergence risk.
farmprogress.comChris Swift 1Apr 6, 2017Not 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.
