You can look at volatility in two ways. Volatility in the cattle markets means that you may be exposed to risk that you did not plan for. For example, earlier this decade when the CDN dollar moved from the low 70’s to par in a violent upward fashion which caught many people off guard. The other side of volatility is the exposure of opportunity. This opportunity can be profit or a loss in some cases but the challenge is to take advantage of great timing in the marketplace. In the cattle market producers are concerned about the market prices but also the cost of goods or inputs.
With the cash price and futures for fat cattle running higher, volatility is providing opportunities for this turn of fat cattle and new placements. This week in the Beef Market Update, Anne Dunford discusses the need to act on recent upward volatility before the old saying, What Goes Up , Must Come Down,” proves true.
If you have questions for Anne Dunford for future episodes of the Beef Market Update, send your emails to [email protected]
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