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One trend I have seen is for order buyers to be calling with light weight calves. I have been saying the opposite-to buy heavy feeders 850# +. I haven't looked at the placement weights but I am betting that is what the picture looks like. The surest way to correct the imbalance is for feeders...

Very common depending on what part of the state you are in. I have lived here my entire life and have never skied and many people I know that are natives like myself have never skied. Young professionals, many from out of state, that live in the Denver area make up the vast majority of the...

I am somewhat familiar with them and it would surprise me if they had any traders working there being that they are a IB of RJO for mostly commercial hedgers.

It really isn't a matter of drought. The mountains that supply Denver's water had a great year for snow. It is the fact that the greater front range is growing such that over the coming decades water will become a big issue. Right now they have the water-much more than in 2002 when the drought...

The water in the mountains and Denver tastes better because it is better. Denver gets its water right from the mountains.

Except water demand in the front range is growing above that which the basin can supply by snowmelt.

Yes! I live in the southeastern corner of the state and it is dry. We have had some rain but not enough. The real problem facing the front range is that there is not enough water to go around. I don't know where it will all come from but the price of water rights here in this part of the...

The difference with cattle versus corn is that all cattle that are not going to be breeding stock are destined for a feedlot somewhere. It isn't a matter of buying the pen space as it is in corn with buying acres. It would most likely impact the feeder/fat spread. If supplies of feedlot cattle...

Very few trading jobs but there are a decent number of hedge funds and fund of funds and quite a few mutual funds. The equity culture in Colorado died with the Janus twenty in 2000-2001. Denver boomed on tech spending but now downtown is booming on Oil money. There are numerous oil and gas...

Honestly, I never look at the CoF report. As many interests as there are in the markets my view is that all the CoF information is priced in. However, reactions to the news can be traded but I am more of a longer term watcher of the market. Having said that I will take a look at it later...

Today it seems the market is doing the opposite of my butterfly idea with October little changed.

Right now it would be a risk controlled way to build a position that I see working if FC corrects lower. October is a seasonally weak month for feeder cattle-it may not be this year but historically it is. Combine some risk controlled positions and you can ride out volatility. I need to analyze...

I am just thinking of two ways to do this. One is to setup a futures butterfly. Long August, short 2 October, long January (this is FC, but you could do LC too by adjusting months). This is a just a type of spread and when I chart it, it is oversold on both commodities. With options I am...

If I buy puts they are going to be at the money or I am thinking of a butterfly. I can let a butterfly set with little risk while I wait for the market to come in. I would rather focus on Feeders or on FC/LC spread. Feeders are a derivative of Live Cattle in one sense and if we price them as...

Good question. I have mulled over this topic a little bit with Howard Simons (related to option implied theoretical cost of carry in LC). The anwser is I don't know. However, neither commodity is storable. I cannot buy LC deliverable cattle today and store them until December. I can buy...

Usually that is the best course of action.

I just honestly can't see what is driving the market. I don't know anyone that has been aggressive in the cash market. Most I know have really cut back on cattle procurement. Maybe I am just missing something. I hate to try and outguess or second guess a market but I just can't justify the price.

Buying puts would be my trade of choice as well, probably in the feeder cattle from August but weighted more toward the deferred months. I am waiting patiently for now though, the time will come to sell one day. As for the grains, I am ok with being early. I do think we get an acreage...

Unfortunately I don't have a bloomberg terminal, I do have bloomberg tv and that is nice to have. That is why I have to make due with custom programed indicators in tradestation and others. Who or what is Brevan Howard?

There is no way I know of to install DeMark indicators. Bloomberg and CQG do have some of them but Bloomberg terminals are $2,000 a month. I custom programed them into Tradestation, if you need help or more info on DeMark just PM me.