News

Cattle futures market volatility still a concern

cattle feedlot-cactus feeders 2-16Discontent with volatility in the cattle futures markets was voiced again last week at the National Cattlemen’s Beef Association’s (NCBA) summer conference in Denver.

Nebraska cattleman and NCBA president-elect Craig Uden says high frequency trading continues to be a major concern.

“There’s a lot of concern that computerized trading is getting a hold of these markets and moving them in a fairly violent direction,” Uden says.

Uden says NCBA has asked the Commodity Futures Trading Commission to review some of its data on high frequency trading in cattle futures.

“We’re going to be working with them so they can analyze some of those specific dates that we felt were ‘out of range’,” he says. “We need that information to be able to address some of these issues we’ve voiced.”

Officials of the CME Group were also at the meeting in Denver. Uden says NCBA remains committed to working with the CME “to ensure the futures market is a viable tool for risk management”.

AUDIO: Craig Uden

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!