Cattle Producers Concern Over Cattle Futures Trading
(Rock Valley) -- Last week cattle producers from across the nation gathered in San Diego, California for the National Cattlemens Beef Association convention and annual meeting. One of the issues that was discussed at great length was the recent action of volatility market prices in the cattle futures. Kent Pruismann, a cattle producer from Rock Valley, and a former president of the Iowa Cattlemen Association attended the San Diego conference and he says officials of the Chicago Mercantile Exchange were invited to explain to cattle producers why the markets were acting like a yo-yo.
Pruismann says once the CME officials shared data from the trading activity within the time period in question, many producers had a different opinion.
The Sioux County cattle producer says the volatile trading happened during the last three months of 2015 and with the markets moving limit up and limit down, sometimes within the same day, it created a scenario making it difficult for cattle producers to utilize futures trading as an effective risk management tool.