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New Mexico | afternoon, was $105 coming back out at 1,350. Steers laid in at $125 wt of 725.
Guys will just buy a cheap put floor on those say @ 100 to 103 for June.
Fat deal goes up, maybe replace those puts with higher puts later on etc..
Cash deal goes to say $125, the cattle will net $260 per.
If fats only go to 115 they make $130 per.
Let the puts expire, collect the cattle, life goes on.
Fat deal will likely catch the Dec forward money that was spent on feeders ( MOST that was corp dough and it will NOT be a LOSER from the get go...just won't happen, that simple ).
Feeders know they are in front of the game, thus feeder cattle prices do NOT directly react to the fat up..ie stabil out.
Everyone gets their heads wrapped around these higher price levels, then we go from there.
Kinda complicated and does make life look easier in other spots.
( perhaps "The Palace of the Longhorn Girls," for example ).
Edited by Markwright 1/9/2011 23:26
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feeding on the edge?hopes,dreams-reality
