Market Recap
August feeders settled yesterday at $333.80 with a preliminary index settlement at $332.80. This chart below is the rolling feeder cattle chart of the delivery contract, or the front month expiration. This leaves a gap between August's settlement of $333.80 and September's current price of $322.25 (preliminary). It would not be unusual for the next contract month to trade to the point where the previous contract expired - putting September back to $333, which is the range we traded earlier in the month of August. This is considered an expiration gap and if/when that gap gets filled, we would want to be paying attention and use that as a place to be defensive in adding hedges to feeder cattle.
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