For a typical feedlot, feeder cattle and corn are the two primary inputs; while the output is typically live cattle, which is sent to market once the feeding process ends. The long crush trade combines taking a long position in feeder cattle and corn with corresponding short positions in live cattle. The cattle crush trade goes to the heart of the fundamentals in the cattle feeding business. For a feedlot risk management manager, the crush spread provides an opportunity to lock in a margin.
The Ag Fix Cattle Crush Package will get you Member access to the current Live Cattle, Corn and Feeder Cattle Heat Maps, which are updated on Friday afternoons. You will also have access to the previous 2 years of Live Cattle, Corn, and Feeder Heat Maps.