Technically Speaking
Darin Newsom DTN Senior Analyst

Tuesday 06/10/14

The "Young" (Cattle) and the Restless
Recently, national media not normally used to covering ag issues discussed the volatile goings on in the "young" cattle market.[Read Full Blog Post]
Posted at 8:39AM CDT 06/10/14 by Darin Newsom | Post a Comment
Comments (1)
Update: DTN Associate Editor Kim Adrian was able to gather some feeder cattle basis data for me. Plotting the numbers results in a chart showing national average basis (national average cash price minus the nearby futures contract) of (-$5.425) is well below the five-year average of (-$2.64). Recall that one of the early warning signs of a futures market pulling away from its intrinsic value is a weakening of the basis. In other words, the weaker than normal basis could be a warning sign that the market is losing its commercial support. A classic example of a similar situation was 2008 SRW when national average basis collapsed.
Posted by DARIN NEWSOM at 2:00PM CDT 06/10/14
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