The State of Commodities

Lately, the state of commodities seems to be mirroring the state of the rest of the world; namely incredibly volatile. The world and its happenings seem to affect just about everyone in some shape or form. I would submit the cattle markets are no exception.

The June 30 crop report provided some temporary relief for feed costs, but with the weekly December corn close on July 8, the relief could be short lived.

Many people are saying the need for risk management is stronger than ever. I would say that it depends largely on one’s risk tolerance. Risk management can curtail losses in volatile times, but unfortunately on the flip side it curtails profits as well. My personal bias.

Right now, there is more risk in the corn market than the fat cattle market.  With feeder cattle at contract highs, the need to be very careful with your purchases and feed needs is imperative.

This entry was posted in Uncategorized. Bookmark the permalink.