i still can't figure out how packers get through the week without any trades? do they buy from private sources that doesn't get reported,cause the slaughter is still there? hogs have consistent trade but not cattle. strange to me.
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Aug Feeder Cattle.
- Thread starter Sandor54
- Start date
Quote from battle river:
i still can't figure out how packers get through the week without any trades? do they buy from private sources that doesn't get reported,cause the slaughter is still there? hogs have consistent trade but not cattle. strange to me.
There are lots of arangements between feedyards and packers that knowone knows about. They also feed lots and lots of their own cattle and there is no trade on those cattle. Just move them from their feedyard to their packing house.
joe,
wouldn't the basis HAVE to correct to flat to cash on expiry?
if we see heavy deliveries against the august contract, how does that actually make prices go lower? it's not like they're selling more futures just delivering against em.
so, wide basis is profitable IF it is profitable to ship to authorized terminals at CME right?
wouldn't the basis HAVE to correct to flat to cash on expiry?
if we see heavy deliveries against the august contract, how does that actually make prices go lower? it's not like they're selling more futures just delivering against em.
so, wide basis is profitable IF it is profitable to ship to authorized terminals at CME right?
Quote from criveratrading:
joe,
wouldn't the basis HAVE to correct to flat to cash on expiry?
if we see heavy deliveries against the august contract, how does that actually make prices go lower? it's not like they're selling more futures just delivering against em.
so, wide basis is profitable IF it is profitable to ship to authorized terminals at CME right?
Heavy deliveries forces cash and futures together because of 2 things: #1-There tends to be more sellers of futures because they are willing to sell cattle at $83.50 versus the $79 being bid today
#2-Packers will have to give more to keep feedyards from delivering the cattle against the board. Packers can be the buyer(the one taking delivery)
in other words with futures holding their positive tone, it could be inferred that packers up their bids in the cash market to compete for the cattle instead of having it lost to the board.
incidentally, when you deliver vs the "board" who are u delivering to???
so from now til first notice day, either futures crash or packers up their bids.
packers would be co.s like tyson and swift right?
incidentally, when you deliver vs the "board" who are u delivering to???
so from now til first notice day, either futures crash or packers up their bids.
packers would be co.s like tyson and swift right?
Quote from criveratrading:
in other words with futures holding their positive tone, it could be inferred that packers up their bids in the cash market to compete for the cattle instead of having it lost to the board.
incidentally, when you deliver vs the "board" who are u delivering to???
so from now til first notice day, either futures crash or packers up their bids.
packers would be co.s like tyson and swift right?
Live Cattle have 2 kinds of delivery against the CME. Live delivery or carcass delivery.
Live deliveries are usually accepted by a speculator. Someone that thinks the cash market is going to go up. In other words, from the designated CME delivery station the cattle are visually graded by the USDA then go back on feed at another feedyard for 30 days or so before they reenter the market.
On carcass deliveries the cattle are actually delivered to a packing house where they are slaughtered and graded by the USDA grader.
The party taking delivery of cattle can designate 'live' or 'carcass'
joe. with the basis so wide, the market is anticipating better packer bids right?
choice continues to get smoked, and the idea is we're going to see good demand from grocers going into september that are getting lured by lower px's.
choice continues to get smoked, and the idea is we're going to see good demand from grocers going into september that are getting lured by lower px's.
Quote from criveratrading:
joe. with the basis so wide, the market is anticipating better packer bids right?
choice continues to get smoked, and the idea is we're going to see good demand from grocers going into september that are getting lured by lower px's.
Better packer bids or lower futures. Who knows? On the beef trade, ????