Cattle Feeders Lose Five Billion
Tuesday, 24 March 2009
CattleFax market reporting service estimates that grain finished cattle have lost their owners around five billion dollars since November of 2007. The service notes that despite these horrendous losses cattle feeders continue to pay too much for feeder cattle and they are still betting on the come. However, at some point this will have to end and feeder cattle will have to come down in price. CattleFax estimates feeder cattle will trade between $90 and $95, basis the CME feeder cattle contract for the next 60 days. After that, it could get dicey unless cattle feeders start making some money.
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