Aug Feeder Cattle.

how much is packer margins considered? margins just a few weeks ago were +$50 now -$10. is that a big swing for this market? and at what margin do the packers start pulling back? i read about hog plants cutting back,so is it the same with the beef plants?
thanks:)
 
Quote from battle river:

how much is packer margins considered? margins just a few weeks ago were +$50 now -$10. is that a big swing for this market? and at what margin do the packers start pulling back? i read about hog plants cutting back,so is it the same with the beef plants?
thanks:)
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None of what the packer does ever makes sense. They can claim to be losing money every week and keep on giving more every week. Then you can hear that they are making $100 per head and they keep giving less every week.
 
Quote from criveratrading:

so with august futures trading at a steep premium to cash, what sort of convergence if any does one expect ? wouldn't it be of sense to deliver against the august contract rather than sell with this poor basis?
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The basis will probably be close to -$1 by the end of August. Yes it would make sense to deliver cattle against the board, but you can't start doing that until August 10 and the basis needs to be about $-2.50.
 
CHOICE SELECT
600-900 600-900
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Current Cutout Values: 139.14 122.97
Change from prior day: (1.88) (0.51)
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cutout px's getting smacked yet futures rallied yesterday on views that cheaper prices would stir up demand? sort of like does the tail wag the dog or vice versa. i think this is more symptomatic of lower demand than a harbinger of potential demand.

but i'm a bear.

cash friday tomorrow!!
 
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