With the fall run about to begin many feeders are in a very nervous place. It can be very difficult to make good business decisions when the market is nervous. If the list below continues to unfold through the fall it will really separate the good managers from the great managers. Or the lucky from the unlucky depending on how you look at it.
There are several reasons for the nervousness and everyone will place a different level of importance on any of them.
- Due to the wet spring cattle have not been placed in yards for 90 days, so pens are very empty.
- August placed feeder cattle have been placed at price that break in the high nineties.
- There is increasing volatility in the commodity markets, resulting in concern over how much feed to lock up.
- The Canadian dollar seems to be more likely to trade at par than 90 cents.
- Some money was made in the early part of the year and no one wants to erase the benefit of an infrequent win with some bad decision making in the fall.
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