Live Cattle and Feeder Cattle Limits increased

Help Support CattleToday:

mncowboy

Well-known member
Joined
Oct 16, 2009
Messages
456
Reaction score
15
Location
West/Central MN
Noticed today the Feeder limits were extended from $4.50 to $6.75 and Fat Cattle increased to $4.50.
Anyone have an opinion if this is good or bad for the producer? I'm thinking it'll only increase the volatility but I may be wrong.
 

WalnutCrest

Well-known member
Joined
Jan 2, 2014
Messages
2,469
Reaction score
2
Location
Northeast KS (USA)
More liquidity equates to better prices in average and over time ... because when times are bad, it increases the odds one can get OUT of a position they no longer want to be in.

So, yes, more P/L for the desk jockeys ... but without liquidity (and volatility) there is no price discovery.

This is a good move.
 

Stocker Steve

Well-known member
Joined
May 2, 2005
Messages
11,221
Reaction score
567
Location
Central Minnesota
WalnutCrest":2lcgv00w said:
without liquidity (and volatility) there is no price discovery. This is a good move.

2X The limit rules changed a couple years ago.

The interesting thing is all the talking heads are not focused on corn and beans. So there are a couple themes on the commodity cattle market currently:

1) no one knows what or why
2) world economy is so good that folks will buy more red meat rather than that nasty white stuff
3) graze out wheat cattle are going to tank the market soon
4) the funds did it
 
Top