1. The cattle Aren't being "demanded for delivery"

Isn’t that because the oct/dec is already so wide? My thinking would be that a stopper would just keep the cattle on feed and sell the dec? No need demanding them when you can buy cash cattle at -1 to -2oct right???


2. Re-tendering the cattle, there's been money made on the re-tender....I'll let someone else figure that out. :).

Have all the delivered lots against the oct been retendered? In my mind, the money to be made by delivering against the oct was the driving out of the oct dec by 1$. That was a successful delivery... however when I see such small deliveries... 14 contracts, 16 contracts, etc... it makes me wonder if someone actually is delivering with a purpose... or is it just some hot head pissed about the current price vs dec? I mean we are talking about 500hd here, hardly a market mover? What am I missing?


3. West Point's dock schedule isn't near as severe as Worthing, and these particular cattle are 75 miles closer to Worthing. last year they did the same thing, and the dock near killed them

Aren’t the quality adjustments the same at all delivery locations? The cme rule book reads that all the quality adjustments are based off the daily USDA 5 area discounts and premiums for yg 1,2,4,5, non merchantable, heavy weight, etc etc. I don’t see mentione of that varying by location? I’m asking for clarification not telling.



4. the fact that the packer still paying up and needs cattle, weights are current right now, and just a few days left for October suggests that bull spreading will win over bear spreading

Big Charlie, I’m asking you this question honestly. Do you think feeders are ignoring the large spread to dec? And in into Jan Feb? You keep saying weights are current, weights are current, weights are current. I agree, that as of October 7, they are not increasing. But do you honestly believe that we have printed the highest carcass weight figures of the year? If you do, then I want to be clear that I 100% disagree with you on that. look, think about how a feedlot executes the trades to take advantage of those wide carries. Spreads really got wide the last week of aug/fwsep... the market didn’t tell people to roll hedges and deliver cattle in the first week of October. That was never even a viable option as you had to roll to dec futures to capture the carry? The market told feeders to roll hedges and deliver cattle to first week November when the pricing was vs dec futures. The release of steady carcass weights few oct simply confirms that fact. You make the case that the packer wants your cattle for next Tuesday, but why on earth would you sell them for nw delivery at a 5$ discount to dec? Or better yet, why not hold them to Jan? You can get 1.20 for Jan delivery vs nw at 112? Why would you sell them? The packers biggest competitor isn’t each other, it’s the carry to Jan! Feedlots are reluctant sellers because of the potential to make carry income. Delivery vs October does nothing for basis vs dec... at this point cash and oct futures have converged.


5. their delivery date was old as well....there's going to be some interesting stuff happen the next two weeks in the spreads

6. these particular cattle would get HUGE dock in the cash market..... overweight? Non us origin cattle aren’t deliverable are they?

7. I know the particulars behind this situation, and I can say no more