Harrington's Sort and Cull
John Harrington DTN Livestock Analyst
Sun Sep 21, 2014 06:59 PM CDT

Sometimes risk managers have to think out of the box. Sometimes conventional strategies of speculation amount to the safest game in town.

The fall of 2014 may be such a time for cattle feeders as they face a disturbingly wide and widening spread between nearby live futures and the rising tide of feedlot breakevens over the next several months.

Specifically, spot October closed this week $3 to $4 under cash sales. At the same time, breakevens on fed cattle started to aggressively climb higher. According to the DTN feeding model, breakevens are now set to explode more than $20 by ...

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