Cattle Fortune Homepage

Tools of the Trade

Click on the links below to see what is going on in the Cattleman's world. Tools of the Trade let agribusiness people know when to rock 'n roll or put the brakes on. The Cattle Business is Big Business, Dynamic, Fast Paced and Exciting. These tools give aid to better decision making.

Grimes and Plain - Cattle Market Outlook : This regular publication gives a birds eye overview of the industry happenings. Weather, feed costs, Feeder and Fat cattle prices, among other industry impacts are briefly touched on to take in a broader cattle business perspective.

Grimes and Plain - Cattle on Feed Report and Grimes and Plain - Cattle Inventory Report : It is all about supply and demand. These quarterly and semi-annual reports outlines what is hot, what is not, and what was, to give a better idea on what the near future price will do in the Fed Cattle segment. For example, if numbers of feeder cattle on feed are substantially lower than the years previous it may suggest lower supply, higher demand and higher prices paid for the end result.

Grimes and Plain - Crop Outlook : Since Feeder Cattle consume corn and a lot of it, it is important to know what the supply/demand factor will do to the Cattle Feeder's Cost of Gain (COG). Corn prices directly impact the cost of the Feeder delivered to the feedyard. When corn prices are high, the Feeder Calf prices will, in general, decrease.

U.S.D.A. - National Feeder Cattle Price Reports : This report lists most of the public livestock Auction Markets where Feeder Cattle are sold, including auction barns, internet, and video markets. This is a good reference to evaluate what the prices of cattle are based on location, weight class, gender, and type. We have a software program in creation to simplify the search for the most profitable cattle.

U.S.D.A. - National Cattle and Beef Summary : This report briefly explains the current Fat Cattle price trends as sold live or on the rail. It also lists the prices of boxed beef cut-outs, average live and dressed carcass weights, and CME Future Live Cattle Quotes. In a nut shell, this report gives the seller an idea of what they might receive for their Fat Cattle when harvested.

Chicago Mercantile Exchange - Delayed Feeder Cattle Futures: The Chicago Mercantile Exchange (CME) publicizes the Futures prices for Feeder Cattle to the public. CME quotes are based off 750 to 850 pound beef steers. This quote is not the cash price but more of a speculative price for cattle future and current delivery values of the nearest month. For example, if a buyer was investigating what the price of a 800 pound steer might cost them in June, they would look at the May FC Strike Price. This is a good tool and will give the buyer a good idea of what cattle prices are forecasted to bring during this period. This publication is updated every 10 minutes.

Chicago Mercantile Exchange - Delayed Live Cattle Futures: Much like the CME Feeder Cattle Futures, this delayed report forecasts the values of a harvest ready fat steer averaging 1250 pounds. This is one of the best tools when deciphering what your projected profit or loss might be as the buyer decides to purchase feeder cattle. For example, if you know what your breakeven is and when the cattle are projected to be harvest ready take a look at the nearest closing month. If an 800 pound steer is purchased in June the Fed Cattle should be harvest ready to sell by the middle or end of October. In this case the buyer would look at the October LC strike price minus the basis which averages $0.50 to $1.00 back of the board.

Chicago Mercantile Exchange - Daily Livestock Report: This is a daily report from the CME which gives a market commentary as to the reason for the speculative prices quoted on the CME Board. Again, this is a tool to understand the market conditions and what drives the values for current and future commodity values.