Cattle Marketing: Cash Market Basics

Slides:

Advertisements

Similar presentations

BeefBasis.com A Web Based Cattle Basis Analysis & Forecasting Tool Dr. Kevin Dhuyvetter and Dr. James Mintert Department of Agricultural Economics Kansas.

Advertisements

Livestock Management and Marketing Considerations in Dealing With Drought Dr. Curt Lacy and Dr. John McKissick Extension Economists-Livestock University.

Commodity Marketing (futures) Mathematical Applications in Agriculture.

2013 Cattle Market Situation and Outlook Derrell S. Peel Breedlove Professor of Agribusiness and Livestock Marketing Specialist.

What It Takes To Succeed In Cooperative Feeder Cattle Marketing Emmit L. Rawls Professor Agricultural Economics.

APEC 5010 Firm Marketing and Price Analysis Dillon M. Feuz Utah State University.

FED CATTLE MARKET SIMULATOR Fed Cattle Market Simulator or Packer-Feeder Game Department of Agricultural Economics Oklahoma State University.

1 Profitability of Selected Marketing Alternatives Todd D. Davis Extension Economist Clemson University.

AGEC 420, Lec 8 1 AGEC 420 Hedging examples AGEC 420, Lec 8 2 Hedging Expected (net forward) price: =futures + expected basis If basis is at the expected.

Roger Sahs Extension Assistant, Oklahoma State University Damona Doye Rainbolt Chair of Agricultural Finance and Regents Professor, Oklahoma State University.

1 Agricultural Economics Market Journal Toolbox A marketing and risk management program for agricultural producers Becky Small & Darrell Mark Department.

Current Economic Climate of the Cattle Business Derrell S. Peel Breedlove Professor of Agribusiness and Extension Livestock Marketing Specialist Oklahoma.

Types of Grain/Oilseed Contracts by: Joe Parcell PIE Agricultural Contracting.

Buying Hedge with Futures. What is a Hedge?  A buying hedge involves taking a position in the futures market that is equal and opposite to the position.

Econ 337, Spring 2014 Chad Hart Associate Professor Lee Schulz Assistant Professor ECON.

Livestock Management and Marketing Considerations in Dealing With Drought Dr. Curt Lacy Extension Economist-Livestock University of Georgia

Maintaining U.S. Beef Industry Competitiveness with High-Priced Grain Derrell S. Peel Breedlove Professor of Agribusiness And Livestock Marketing Specialist.

Chapter 10 Understanding and Applying Hedging: Using Futures, Options, and Basis Using Futures, Options, and Basis.

1 Retained Ownership- Value Added John Marsh Professor Department of Agricultural Economics and Economics Montana State University July 2006 MB BA M ontana.

Livestock Markets 2003 BillionPer CapPriceExport lbslbs$/cwt% Beef Pork Broilers Turkeys

Econ 337, Spring 2014 ECON 337: Agricultural Marketing Chad Hart Associate Professor Lee Schulz Assistant Professor

Effects Of Animal Identification On Cattle Market Structure Prepared by: Darrell R. Mark, Ph.D. Asst. Professor & Extension Livestock Marketing Specialist.

Becoming Familiar with Cash Sales Becoming Familiar with Cash Sales Objectives: Understand advantages and disadvantages of various types of cash sales.

Managing Risks Associated With Feeder Cattle Terms of Trade Walt Prevatt, Ph.D. Agricultural Economist Auburn University.

Putting It All Together For 2006 Tim Hewitt University of Florida.

Price Risk Management in Extension Beef Carcass Evaluation Programs: The Georgia Beef Challenge Experience R. Curt Lacy, Patsie Cannon, Jim Collins, John.

Agricultural Economics.  Weak overall economy  affecting demand for most all ag commodities – especially hitting dairy and livestock producers. Equine.

Chapter 7 Pricing and Exchange Systems and Alternatives Within the Marketing-Procurement Channel.

K-State Research & Extension Milk Futures & Options Workshop James Mintert, Ph.D. Professor & Extension Ag. Economist, Livestock Marketing Kansas State.

Livestock Risk Protection and Price Basis Tim Eggers, Iowa State University Extension Field Agricultural Economist.

The ABC’s of Marketing Your Cattle.

Econ 337, Spring 2013 ECON 337: Agricultural Marketing Chad Hart Associate Professor Lee Schulz Assistant Professor

CATTLENOMICS Derrell S. Peel Agricultural Economics Oklahoma State University.

Outlook for Wisconsin and U.S. Dairy Markets FARM Team Agricultural Prices Conference Brian W. Gould Associate Professor Department of Agricultural and.

Chapter 13 Processor Procurement Systems. Processor as Coordinator  Goal: to keep organization running with flow-through that is profitable  Profitable.

Oklahoma Quality Beef Network: Three-Year Summary Clement E. Ward, Professor Department of Agricultural Economics Oklahoma State University.

Option Problems. APEC 5010 Fact Sheet Hedging with a Put Option.

Costs and Profitability Outlook for 2006 Curt Lacy Extension Economist-Livestock University of Georgia.

The Impact of COOL on Mexican Cattle and Beef Production and Trade Derrell S. Peel Department of Agricultural Economics Oklahoma State University.

2014 Cattle Market Situation and Outlook Derrell S. Peel Breedlove Professor of Agribusiness and Extension Livestock Marketing Specialist Oklahoma State.

Challenges with Heifer Selection – HOW MANY Should I Breed, and What are they worth? Dr. Ron Lemenager Beef Extension Specialist

ECON 337: Agricultural Marketing Chad Hart Associate Professor Lee Schulz Assistant Professor

Finding Profitability Through Backgrounding or Finishing.

Profitable Cattle Marketing Options and Alternatives Modified by Georgia Agricultural Education Curriculum Office June, 2002.

Futures Markets CME Commodity Marketing Manual Chapter 2.

 Contact Us  Address: I-44 & Exit 22 Carthage, Missouri  Phone:

Utilizing Enterprise Budgets in Beef Cattle Operations

Beef Cattle Market Update

Agriculture in Smyth County Growing the Future

Drought 2012: Impact and Implications for Animal Agriculture

Livestock Marketing Systems

Economics of Improved Grazing Systems

Livestock Marketing: Futures Market & Hedging Basics

The Marketing Puzzle = + Price Kim Anderson

Cattle Market Update Derrell S. Peel

Cattle Marketing: Cash Market Basics

Marketing Cows for Profit. Represent 15-20% of Cow-calf income

Cattle and Beef Markets: Short and Long Run Challenges and Opportunities Derrell S. Peel Breedlove Professor of Agribusiness and Extension Livestock Marketing.

Agricultural Marketing

The Marketing Puzzle = + Kim Anderson

البيئة السياسية للإدارة الدولية

Cattle Market Update Derrell S. Peel

Feeder Cattle Price Differences

Cattle Marketing: Cash Market Basics

Agricultural Marketing

Cattle Market Update Derrell S. Peel

2019 Cattle Market Update Derrell S. Peel

Agricultural Marketing

Business Structures, Markets, and Risk Management

Winter Stocker Considerations, 2019

Presentation transcript:

Cattle Marketing: Cash Market Basics Derrell S. Peel Extension Livestock Marketing Specialist and Breedlove Professor of Agribusiness Oklahoma State University

Marketing Tactics Shrink and weighing conditions Price slides Marketing channels

Price Slide or Rollback OK combined auction, 2000-2016 Weight (lbs.) Price ($/cwt.) Change Slide (Cents/lb.) % Slide 375 163.78 425 155.26 -8.52 17.04 10.4 475 147.83 -7.43 14.86 9.6 525 141.32 -6.51 13.02 8.8 575 135.19 -6.13 12.26 8.6 625 130.51 -4.68 9.36 6.9 675 126.93 -3.58 7.16 5.4 725 124.19 -2.74 5.48 4.3 775 121.15 -3.04 6.08 4.9 825 118.38 -2.77 5.54 4.6 875 115.36 -3.02 6.04 5.1 925 112.50 -2.86 5.72 5.0

Market Channels Choice of marketing channel affects information and negotiation requirements Local/regional auctions Video auctions Direct sale

Cattle Marketing: Tactical Considerations Establish Price Risk management Transfer ownership Legal (determine buyer) Physical (shipping) Marketing Alternative Establish Price Establish Buyer Transfer Ownership Cash Auction Now Video Auction Later Forward Contract Futures Hedge

Marketing Cull Cows Improve profits from cull cows Utilize excess forage/feed resources

DEPARTMENT OF AGRICULTURAL ECONOMICS