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Analyst Dan Basse forecasts an average cash corn price of about $3.40 per bushel for the 2016-2017 crop year, assuming no major weather damage. He expects continued bearishness in cattle, with cash cattle bottoming around $95 to $97 per cwt.
He also argued that the CME live cattle contract is undervalued and urged feeders to protect margins.
Low expected corn prices reduce feed costs for feeders, but abundant supplies keep cattle prices under pressure. Risk management matters given weak futures liquidity.
beefmagazine.comLarry StalcupSep 1, 2016Not 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.
