Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm Programming Radio Oklahoma Network  |  7401 N. Kelley Ave. Oklahoma City, OK 73111  |  (405) 841-3675  |  Fax: (405) 841-3674

advertisements
   
   
   
   
   
   
   
   

Beef Buzz News


What's Really the Underlying Issues Causing Market Volatility - Dr. Derrell Peel May Have the Answer

Wed, 08 Mar 2017 12:31:39 CST

What's Really the Underlying Issues Causing Market Volatility - Dr. Derrell Peel May Have the Answer Problems with transparency, liquidity, volatility, etc. have challenged cattle markets for some time now. One problem that has been around for a few years and is in recent months even more prevalent is the convergence issue, which has allowed the futures market to align with the cash market by the time a particular contract is settled. According to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, who spoke recently with Radio Oklahoma Ag Network Farm Director Ron Hays, some of the more recent trade has exacerbated the convergence problem.


“We’ve talked a lot about volatility in the futures market both live and the feeder cattle contracts,” Peel recounted. “And of course, the markets have been playing catch up to this some what stronger than expected cash market. February live cattle futures just went off the board really struggling to catch up and not really reflecting that stronger cash market until the bitter end.”


Peel explains that when taking those February prices relative to where the summer months are priced, he says we have an extraordinarily large discount priced into the live cattle market.


“It’s already showing a significant drop from now until the April in the April contract,” he pointed out. “That in my mind, will be a little bit bigger discount than is really warranted, but the market knows that we do have more beef production coming.”


Peel believes a combination of fundamental issues are behind this, but also believes there are more structural problems at the core of the situation. He says this is causing the futures market to be much less effective for producers as a risk management tool.


Listen to Peel explain to Hays the underlying issues beneath the convergence of the markets, on today’s Beef Buzz.


The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.




   





   

Listen to Peel explain to Hays the underlying issues beneath the convergence issue in the markets
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • New Acquisitions Allow National Livestock to Better Serve Customers, Offers More Marketing Options  Thu, 14 Dec 2017 11:19:07 CST
  • Mexico's Changing Market Giving US Cattle Feeders a Run for Their Money as Competition Grows  Wed, 13 Dec 2017 11:41:48 CST
  • Angus Genetics Inc. President Dan Moser Says Advanced Genetic Tools Add Tremendous Value  Tue, 12 Dec 2017 11:10:02 CST
  • NCBA Offers Producers a Premier Educational Opportunity at the 25th Edition of Cattlemen's College  Mon, 11 Dec 2017 11:10:26 CST
  • Cattle Market Economist Derrell Peel Looks into His Crystal Ball for What Lies Ahead in 2018 Markets  Fri, 08 Dec 2017 10:08:01 CST
  • Market Watcher Derrell Peel Looks Back on the Remarkable Success of the Beef Business in 2017  Thu, 07 Dec 2017 10:56:07 CST
  • What Won't Animal Rights Activists Resort to? AAA's Kay Smith Shines Light on Their Criminal Activity  Wed, 06 Dec 2017 10:25:00 CST
  • Ag Advocate Kay Johnson Smith Calls on Industry to Stand Up Against Pressure from Animal Activists  Tue, 05 Dec 2017 10:18:47 CST
  • Animal Ag Alliance's Kay Johnson Smith Exposes the True Goal of Animal Activists and Their Tactics  Mon, 04 Dec 2017 10:17:40 CST
  • Vet Mike Apley Says Antibiotic Use in Animal Agriculture is a Matter of Judicious Use vs. Stewardship  Fri, 01 Dec 2017 10:10:26 CST
  • MU's David Patterson's Holistic Evaluation Strategy Helps Enhance Replacement Heifer Performance  Thu, 30 Nov 2017 11:54:45 CST
  • Producers Now Able to Diagnose BRD in Under 8 Seconds Thanks to Merck's New Whisper System  Wed, 29 Nov 2017 11:01:58 CST
  • Slow and Steady Wins the Race - Early Investment in Emerging Markets Promise Valuable Returns  Tue, 28 Nov 2017 11:35:11 CST
  • USMEF Prepares for a Leaner Year as the Threat of Increased Competition Grows from Down Under  Mon, 27 Nov 2017 11:37:53 CST
  • Markets in 2017 a Pleasant Surprise But Bigger Calf Crops Could Hinder Producers' Future Profitability  Fri, 24 Nov 2017 11:25:58 CST
  • Temporary Waiver on Looming ELD Mandate Buying NCBA Time to Negotiate Long-Term Exemption  Wed, 22 Nov 2017 11:55:52 CST
  • OSU's Deb VanOverbeke Says Industry Showing Notable Improvement in Latest Beef Quality Audit  Tue, 21 Nov 2017 10:15:52 CST
  • The Beef Industry is Evolving and Certified Angus Beef is Setting the Curve in Value-Based Marketing  Mon, 20 Nov 2017 11:23:36 CST
  • NCBA's Tax Maven Danielle Beck Talks Turkey on Pre-Thanksgiving Tax Package and Its Impact  Fri, 17 Nov 2017 11:46:41 CST
  • Mark McCully of Certified Angus Beef, Connecting the Dots Between Producers and Profitability  Thu, 16 Nov 2017 10:19:37 CST
  • WTO Rules in Favor of US Claims Against Indonesia Giving US a Chance to Grow Its Market Share  Wed, 15 Nov 2017 11:46:57 CST
  • NCBA's Collin Woodall Praises Trump Admin. for Its Actions to Alleviate the Regulatory Burden on Ag  Tue, 14 Nov 2017 11:09:07 CST
  • While Trump's Trade Rhetoric May Just be a Negotiation Tactic, We Can't Afford to Take a Chance  Mon, 13 Nov 2017 12:07:30 CST
  • Don Close Says 2017 Has Been a Remarkable Year for Cattle Producer Profits  Sat, 11 Nov 2017 21:30:02 CST
  • Angus Breed Aiming for Genetically Based Feeder Calf Program to Enhance Value of Angus Calves  Wed, 08 Nov 2017 20:45:53 CST
  • Value Added Programs Play Important Role in the Success of Beef Markets, Made Evident this Year  Tue, 07 Nov 2017 11:59:07 CST
  • CattleFax CEO Randy Blach Says 2017's Robust Export Market the Industry's Biggest Bright Spot  Mon, 06 Nov 2017 12:08:14 CST
  • Animal Activist Groups Encouraging Followers to Harass Local Businesses to Force Their Compliance  Fri, 03 Nov 2017 09:49:53 CDT
  • CME's Collaboration with Cattle Industry Yields Some Welcomed Improvements to the Futures Market  Thu, 02 Nov 2017 11:35:34 CDT
  • Will Beef Take a Back Seat to Turkey and Ham this Holiday Season? Maybe Not, Says Glynn Tonsor  Wed, 01 Nov 2017 11:43:25 CDT
  • Glynn Tonsor Reads Between the Lines of Current Beef Market Data that Shows Underlying Demand  Tue, 31 Oct 2017 12:05:58 CDT
  • Trump's Trade Rhetoric Keeping Industry on Edge, Fearing Loss of Its Strong Export Market Position  Mon, 30 Oct 2017 11:11:20 CDT
  • Secretary Sonny Perdue Optimistic that Advancements in International Trade will Soon Pick Up Pace  Fri, 27 Oct 2017 12:17:07 CDT
  • LMIC's Jim Robb Keeping an Eye on Beef Byproduct Exports, Showing Signs of Softer Performance  Thu, 26 Oct 2017 11:01:17 CDT
  • Supplementing Herd's Fall Grazing with Sweetlix Mineral Blocks Can Add Up to 10% More Daily Gain  Wed, 25 Oct 2017 11:56:05 CDT

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   Jan 17  |   Feb 17  |   Mar 17  |   Apr 17  |   May 17  |   Jun 17  |   Jul 17  |   Aug 17  |   Sep 17  |   Oct 17  |   Nov 17  |   Dec 17
       

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Tulsa Farm Show Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

       
       
    © 2008-2017 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup

    WebReady powered by WireReady® Inc.