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January feeder cattle futures are trading higher than November. That may seem reasonable, considering the recent bearishness of the feeder cattle market. Bears often sell the market by spreading, selling the front months while buying the back months. A closer look at market fundamentals, though, makes the January premium puzzling.
Will Corn Prices Delay US Beef Herd Expansion? With corn trading above $5 per bushel, some wonder if expansion of the US beef herd will be put on hold for another year. Maybe, maybe not.
In a July 21, 2010, segment, CNBC's Jane Wells talks with Custom Ag Solutions' Brett Crosby about financial regulation and cattle prices; naturally, BeefBasis just happens to come up.
A July 19, 2010, Beef magazine article describes the predictive accuracy of cattle futures. The article references a study by Glynn Tonsor, Kansas State University assistant professor and also mentions the availability and features found on the BeefBasis.com website.