AgWeb Farm Journal Legacy Project Top Producer Dairy Today Beef Today Pro Farmer Ag Day TV US Farm Report MyMachinery.com Ultimate Farm Quest
+ Reply to Thread
Page 1 of 2 1 2 LastLast
Results 1 to 10 of 14
  1. #1
    Senior Member frankie boy is on a distinguished road
    Join Date
    Apr 2011
    Posts
    238

    livestock futures speculation

    I have never traded cattle or hog futures.

    Is there anyone here who has traded either of them with any degree of success over the course of time?

  2. #2
    Senior Member greengold is on a distinguished road
    Join Date
    Jan 2011
    Posts
    809
    breakeven at best with the meats...not my cup of tea

  3. #3
    Senior Member verbatime is on a distinguished road verbatime's Avatar
    Join Date
    Oct 2007
    Location
    USA
    Posts
    13,047
    I don't think they'll let you in where you want on hogs if you get in. Cattle trade you can get in and out all day long.

  4. #4
    Senior Member r3020 is on a distinguished road r3020's Avatar
    Join Date
    Oct 2007
    Posts
    8,709
    Used to hedge hogs. Cash and futures would never come together. Couldn't deliver without getting bent over for a long one. I stay away from them now.

  5. #5
    Senior Member PERCY is on a distinguished road
    Join Date
    Nov 2010
    Posts
    3,667
    Ask HILLARY CLINTON!!!!!!
    Last edited by dairyfarmmn; 07-20-2011 at 10:47 PM. Reason: fixed up for Percy. His hands must be cold.

  6. #6
    Senior Member PERCY is on a distinguished road
    Join Date
    Nov 2010
    Posts
    3,667
    Bloody computer, won't let me correct the above post: should read ...ask HILLARY CLINTON!!

  7. #7
    Senior Member frankie boy is on a distinguished road
    Join Date
    Apr 2011
    Posts
    238
    Thanks for the feedback.

    When I first started trading, I read several books. One was an anthology of interviews with 15 successful traders.

    Each trader had his/her own way of entering and exiting trades. Some traded currencies or bonds, others traded sugar and cocoa, some the S&P or grains, etc.

    One question the author asked each of them is: Are there any futures contracts you avoid trading at all costs? This was the one question that all 15 traders were in total agreement on, and each gave the same answer. Hogs and cattle.

    One said that a mentor advised him early on: "Trade meat, and you'll end up in the street."

    The reason I threw this question out for discussion is that there are some folks (both in the CME livestock pits and at their own PCs) who trade these contracts every day, so someone has to be making consistent profits as speculators. I've just never encountered one in real life or in any blog.

    The funny part is, there are some who've posted here over the years who have boasted about making a lot of money trading grains and energy futures, as well as a few cotton and sugar traders. A few of these people have no doubt lied or exaggerated about their gains.

    But I have yet to see one post from anyone (here on AgWeb or elsewhere) who ever said he made a dime trading October cattle or December hogs.

  8. #8
    Senior Member mfsman is on a distinguished road
    Join Date
    Oct 2007
    Posts
    4,774
    Do you want to personally make money trading them or make money on the trade of them. I would say the best meat traders are those with McVean investments. Dave/midmo has done quite well with them and do not put you completely at risk. As a disclaimer worked with them in late 70's and early 80's and hired from one of the best cotton traders, Mississippi River Investments (I think). It would be Bondurant futures otherwise. These markets are quite complex with all of the valuations and computer alogrithms at work to spend the time to think you can be successful. Meats have less risk for worldwide volatility. I always thought it easier to make money in meats and father had told me to buy beans in 1971 at $2.53/bu and said would go to $3.50. I was dissauded for corn blight in Iowa and buying hogs at $18/cwt. Hogs went to $16 and corn blight not much of an issue at $1.10/bu and beans went to $3.53. I would suggest going with someone who knows what at work. That was the first lesson of commodity trading do not listen to everyone else. In the event you so interested in trading I would suggest getting the book Reminisnces of a Stock Operator. It is the story of Jesse Livermore and Tom Ditmer gave it to me when I went to work for Refco. In the event have no idea what you are doing, I would suggest not trade.

  9. #9
    If you are not comfortable with cattle trading then why not give a thought to trading with futures and commodities? There is a good scope in trading with futures and commodities and people have got excellent returns from this market. So, i suggest give it a try and you could make good profits with the forex trading software.

    _____________________
    [URL="http://www.TrackNTrade.com"]Futures Trading[/URL]

  10. #10
    Senior Member verbatime is on a distinguished road verbatime's Avatar
    Join Date
    Oct 2007
    Location
    USA
    Posts
    13,047
    Kristopher01, how much have you made trading commodities?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
AgWeb Farm Journal Legacy Project Top Producer Dairy Today Beef Today Pro Farmer Ag Day TV US Farm Report MyMachinery.com Ultimate Farm Quest