For years, cattle feeders have relied on the “cattle crush spread” as a hedging strategy. This involves buying feeder cattle and corn while selling fat cattle. The idea has been to manage costs and stabilize returns.

In cattle feeding, effective risk management is crucial for maintaining profitability and long-term success. Traditionally, many cattle feeders have relied heavily on fundamental analysis for their marketing strategies.

So many of us were still waiting, hoping and assuming that the turn of summer into fall would bring the only thing we could practically fathom: higher market prices for beef cattle.

In the realm of cattle feeding, navigating a bullish market can feel much like riding a bull – thrilling, swift and inherently risky. But for those equipped with the right financial tools and strategies, this volatility can be beneficial.

When a dry spell arrives, producers scramble to make the best decisions for grazing pastures, buying hay and caring for livestock. Running stockers as a drought safety valve could be a smart idea.

Traditional hedging through the futures markets has long been a part of agriculture. However, many producers aren’t comfortable with or able to put it into practice.