FED interest rate + vs Feeder Calf market

[mncowboy]

It appears likely or at least there's good potential for the FED to raise the interest rates Dec 15th. If they do, what if any effect will it have on commodity prices, specifically the feeder calf market?

 

[TennesseeTuxedo]

I don't expect to see any correlation. The fact the fed is expected to raise rates has been baked in the economic indicators for months.

 

[Nesikep]

I think it's about time they do... inflation is nuts... part of the reason we're getting $3/lb calves, but what does that buy you in return?

 

[Anonymous]

https://www.youtube.com/watch?v=7ehupK8XW7Y
Fed will not raise rates a significant amount. If so, the massive amount of debt held by government(Federal, State, and Local) as well as individual debt would make a mess very quick. Federal Reserve knows that but can't admit it because this is the greatest Ponzi ever.

 

[mncowboy]

So is the general opinion the feeder market will continue to fall going into spring?

 

[Stocker Steve]

So is the general opinion the feeder market will continue to fall going into spring?

The Fed has and is running a huge experiment. No one knows how it will turn out.

"Experts" say beef is in a down price cycle, on average. Hard to see anything that would change that. I am seeing signs (like in many mineral commodities) that producers plan to increase output even though prices are dropping...

Question is who is making money with these up and down $20/cwt moves ???

 

[1982vett]

So is the general opinion the feeder market will continue to fall going into spring?

The Fed has and is running a huge experiment. No one knows how it will turn out.

"Experts" say beef is in a down price cycle, on average. Hard to see anything that would change that. I am seeing signs (like in many mineral commodities) that producers plan to increase output even though prices are dropping...

Question is who is making money with these up and down $20/cwt moves ???

I think you can look at Japan as a model for US interest rates.......They went to zero back in 1998 or 1999. Blipped up a couple times and are back to zero. But if you want too wreck the economy (more than it already is)....raise em fast and often.

 

[SJB]

the immediate results of raising interest rates will be felt on import/export, because the dollar will continue to strengthen. but as was alluded to, it's baked in, and the dollar has been on the rise for a while now.

i'm not sure about the status of beef as an export. i know there have been new regulations come out regarding importing beef.