Thursday, February 14, 2008
CME Feeder Cattle Price Index
The CME Feeder Cattle Futures Settlement Prices are based on the CME Feeder Cattle Index. This index, in turn, is calculated on the 7-day moving average of cash salebarn sales in cattle country.
The dramatic down turn in the Feeder Cattle Index started in October 2007 and continued through Mid-January 2008. Preliminary analysis suggests that the feeder cattle price index has turned upward again in late January 2008.
I am expecting this index to peak in 2008 near grass time at $8-$10 under the 2007 peak but near the grass time level of 2007. What happens after that, depends of the weather scares in corn country.