Howdy & Welcome to Daily LRP!

"We can't predict the price we can only protect it"

"Fear and Greed Move Markets"

Basis looks a couple different ways

​CME Feeder Cattle Index $369.38 OCTOBER 2026 CME Feeder Cattle Futures $357.52=

+$11.68/CWT Basis (at the end of a month they cash meets the futures)

🚨Here is a new way to look at the numbers
CME Feeder Cattle Index High of all time April 15 2026 $379.09

OCTOBER 2026 Feeder cattle futures $357.52

+$21.57/CWT basis spread to the all time high.🚨

We have settled a bit up today. That will help you find peace this weekend. We are in such a good time and people are getting ready to decide what they will pay for this years calf crop.

I would like to make you aware of the expanded limits that have been put in place by the CME for Feeder cattle. June 2nd we are now a Daily Limit of $9.25/CWT and Expanded Limit of $13.75?CWT for the following trading day. This means this market can have some major price movement even more that before. It also shows how one move down could pay the premium quickly in an LRP.

New Options coming in LRP for 2026 if you are making purchases on cattle that are contracted for say your yearlings next fall we can lock them in. Previously you could only cover cattle that you had physical possession of. This is one of the new changes we will see going forward.



🚨 PLEASE READ CHRIS SWIFT 🚨

Mid Day Cattle Comment (2nd best marketing opportunity?)
Inbox
Summarize this email

Chris Swift
8:56 AM (6 hours ago)
to Chris

April 24, 2026

Live Cattle:
Traders have improved basis and have futures trading plus on the day. From Thursday's low, traders have pushed futures to about a 50% retracement of the decline from contract high. I recommend using this rally to continue managing the risk you have already assumed, or are continuing to. April consumer sentiment fell to a record low, believed due to persistent core inflation and now a hefty dose of commodity inflation to contend with as well.

I recommend buying the at the money put and selling the $10.00 to $14.00 out of the money call in all contract months out to December. This is a sales solicitation. The formation of this strategy will produce a minimum sale floor and maximum sale price with unlimited profit and loss potential above or below the options strike prices. This is a fully marginable position.

Feeder Cattle:
With the index having declined about $9.00 this week, and today's rally in futures, basis has improved greatly. I recommend using this abrupt shift to buy the at the money put and sell the $20.00 out of the money call. This is a sales solicitation. The historical high of the index is $379.09 with today's reading anticipated at $369.32. Up to the September contract, a fence option can be fixed with a top side at, or above the historical high of the index. Two weeks ago, was the best marketing platform available in both cash and futures. Today is believed the second.
​

“This is intended to be or is in the nature of a solicitation.” Futures trading is not for everyone. The risk of loss in trading futures can be substantial; therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Past performance is not indicative of future results, and there is no assurance that your trading experience will be similar to the past performance.

​🐮Dr Darrell Peel🤠

Global Beef Consumption and Imports
Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

Global beef consumption in 2026 is projected at 59.5 million metric tons (mmt), down 1.4 percent year over year, largely due to decreased beef consumption in China. Global beef consumption has increased an average of 0.8 percent annually in the last 46 years, from the 1980 level of 42.4 mmt. The U.S. is the largest beef consuming nation, accounting for 22.4 percent of total global beef consumption in 2026. The U.S. has averaged 23.3 percent of global beef consumption since 1980.
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China/HK is the second largest beef consuming country, with total consumption more than doubling in the past 25 years. Brazil is the number three beef consuming country, followed by the E.U. at number four. Typically, large beef producing countries are also large beef consuming countries.
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Chin/HK is the largest beef importing country, having moved ahead of the U.S. in in 2017 (Figure 2). Beef imports in China/HK have increased sharply since 2013, and especially after 2018, with beef imports supplementing domestic beef production to rapidly increase beef consumption in China/HK (Figure 3). The next three beef importing countries: Japan, South Korea and the E.U. combined are less than the U.S. (Figure 2).
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Figure 4 shows the rapid increase China/HK beef imports as a share of global total imports, pushing China/HK ahead of the U.S. since 2017. The U.S. share of global beef imports has remained relatively steady for many years.

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China/HK is certainly the major driver of global beef trade. Recent tariff rate quotas (TRQ) announced by China will have ripple effects on all global beef markets.