Agricultural News
While Efforts of NCBA and CME to Improve Markets Have Progressed, There's Still Much to Consider
Fri, 13 Jan 2017 11:28:47 CST
Lots of talk has taken place for some time now between the National Cattlemen's Beef Association and the CME Group about how to make the markets better, more transparent, less volatile and more reactive to fundamentals. NCBA's President-elect Craig Uden told Radio Oklahoma Ag Network Farm Director Ron Hays in a recent visit that he has confidence in the direction the discussions have taken.
"As we went through, we looked at volatility, we looked at price discovery and contract specs," Uden listed. "Volatility is somewhat settled down and as the market has kind of collapsed and found a bottom. But, there's still a lot of things that we have to deal with."
As talks continue, Uden insists that there are still many more conference calls scheduled to take place to give the organizations opportunities to discuss potential solutions including balancing contracts to better reflect that cattle that are available today, or looking into the advantages and disadvantages of cash settlements and other delivery points. And while he agrees that progress has been made concerning price discovery and with tools like the new Fed Cattle Exchange platform, there is still much more that needs to be considered in making the markets function at their best.
"I think there's a lot of moving parts, there's never a silver bullet," Uden concluded. "As soon as we fix this, something else will pop up and we'll probably have to deal with something else down the way."
Listen to Hays speak with Uden on his perspective regarding talks between NCBA and the CME Group on improving the function of the markets, on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
