Agri Blog

Are Cattle Prices Due for a Major Correction? A Look at Historical Bull Markets

📉 Cattle Bull Markets – And What May Come Next

🐄 Live Cattle: History Repeats?

Top-to-bottom breaks:

  • 1979: $80 → $51 (▼37%)
  • 2008: $112 → $78 (▼29%)
  • 2014: $171+ → $98.50 (▼42%)

📊 Avg. Break:$45 or 36%
👉 From current levels, that implies a potential drop of $75, targeting the low $130s.

(opinion)

🐂 Feeder Cattle: Even More Volatile

Top-to-bottom breaks:

  • 1979: $91.60 → $59 (▼37%)
  • 2008: $119 → $88 (▼26%)
  • 2014: $244 → $112 (▼54%)

📊 Avg. Break:$65 or 38%
👉 From today’s price, that points to a $109 drop, bringing us toward the $180 zone.


Takeaway:
Strong bull runs in cattle are often followed by sharp, deep breaks. History doesn’t always repeat—but it often rhymes.

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

Source: Bauman Commodity Consulting.

RECENT POSTS

LRP vs. Selling Futures: Understanding Capital Requirements

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...

Is On-Farm Storage Free? The Hidden Costs of Holding Grain

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...

How and Why Margin Calls Occur: A Producer’s Guide to Liquidity

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...

How to Pick the Right Hedge Month for Your Cattle

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...