The Cattle Business Weekly

War Volatility Bleeds into Cattle Markets

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The U.S. conflict with Iran has introduced volatility across commodity and financial markets since the war started on February 28. Producers who haven’t been following these developments closely should be aware of four ways that these developments now affect cattle markets. First, elevated movements in broader markets are pulling cattle futures lower. When the CBOE Volatility Index — the VIX, often called the ‘fear gauge’ of markets — spiked above 29 on March 6, feeder cattle futures dropped nearly and live cattle futures the same day. Most days the VIX has no impact on cattle futures, but when...

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