Even though calving season hasn’t gotten underway in full swing, now is a good time for producers to start planning their 2017 marketing strategy. SDSU Extension Risk Business Management Specialist Matt Diersen says for fed cattle, there’s the typical seasonal pattern in the cash price and it carries over in the future’s price as well.,so it’s advisable to use a five year average basis level.
He says for those with feeder cattle, it’s important to remember that on the feeders last year the weight class was switched in the feeder cattle futures contract so that needs to be taken into account.
Dierson says for cow calf producers, the calf price has fluctuated quite a bit the past few years so it’s important to discount previous high prices and take into account feed costs you’re facing now.
For more information on data behind cattle price trends you can go to igrow.org.
