Market Implications of BSE Case - PowerPoint PPT Presentation

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Market Implications of BSE Case

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These are averages, individual lots will range higher or lower ... Oct 28-Nov1. 3. 67,800. Oct 20-24. 54,200. Oct 14-18. 2. Jan 5-9. 86,100. Jan 6-10. 1. 03-04 ... – PowerPoint PPT presentation

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Title: Market Implications of BSE Case


1
Market Implications of BSE Case
  • The initial news shock will cause cattle prices
    to decline 15 to 20 percent immediately.
  • Fed cattle at Nebraska packing plants 74-78.
  • 700-800 lb feeder steers at ND/SD auctions
    72-82.
  • 500-600 lb feeder steers at ND/SD auctions
    92-102.
  • These are averages, individual lots will range
    higher or lower depending on quality and other
    market factors.

2
ND Situation
  • The first full week in January is usually the
    largest sales volume week of the season.
  • Several auction markets usually hold special
    sales, but dates may be changed this year.
  • USDA, AMS records prices and volumes at 6 ND and
    10 SD auctions called Dakotas series.

3
Dakotas Feeder Cattle Sales Volume Peak Weeks(
of head/week)
4
Producer Strategies
  • Futures and cash markets will be quite volatile
    from day-to-day as new information, both negative
    and positive, becomes available.
  • Future market options protect from sharply lower
    prices, but premiums will be expensive due to the
    increased volatility.
  • Cattle should be marketed according to original
    marketing plan. Holding cattle after they reach
    market weight and grade usually does not pay in
    crisis situations.
  • Do not wait for possible government compensation.
  • Contact your auction market they are aware of
    market conditions in your area.
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