Agri Blog

TL;DR — The Quick Read: LRP vs Selling Futures  The Decision: You need to protect your cattle's price. The two primary tools available are Selling Futures and Livestock Risk Protection (LRP). The Difference: Futures contracts are capital-intensive tools that require...

TL;DR: The 30-Second Summary The Myth: "My bins are paid for, so storing grain is free." The Reality: High interest rates mean holding grain costs you money every day in "Opportunity Cost." The Math: If you have an operating note, holding corn costs roughly 3 cents...

You Can Trade Your Own Account. The Question is: Discount vs full-service broker. What should you do?  TL;DR — The Short Version The Trap: Trading your own account looks "cheaper" on paper. The Reality: Farming is a full-time job. Trading while distracted in the field...

TL;DR — The AgOptimus Executive Summary The Reality: Margin calls are liquidity events, not penalties. They occur because futures markets settle daily, while physical crops sell seasonally. The Mismatch: A margin call does not mean a hedge is failing. It often means...

TL;DR — How to Pick the Right Hedge Month for Your Cattle Match your hedge month to when cattle will likely finish, not when the board looks best today. Weather, health, and feed performance influence finish dates — build flexibility into your plan. If cattle slip or...

TL;DR The USDA Cattle on Feed (COF) report drives cattle futures because it reveals real supply: placements, marketings, and on-feed inventory. What matters isn’t the number itself—but how it compares to pre-report estimates. Heavy placements → bearish. Light...

Futures Cattle Spreads TL;DR A cattle spread is the price difference between two futures months; some feeders trade this difference, not the outright price. Spreads move because of real cattle fundamentals — carcass weights, placements, seasonal flows, packer demand,...

TL;DR High cattle prices bring both opportunity and regret for many ranchers. Common regrets include not layering hedging, assuming prices will stay high, and waiting too long to act on market signals. Hedging with futures and options can protect profits and manage...

This is the opinion of Ag Optimus. Option volatility — often called VOL — is one of the most misunderstood forces in the cattle markets. Most feeders know the basics of futureOption volatility — often called VOL — is one of the most misunderstood forces in the cattle...

Introduction: Why Cattle Feeders Must Understand Basis For cattle feeders, basis is not just a math formula — it’s one of the most important profitability signals in the entire feeding business. While futures prices set broad market expectations, basis reveals the...