Feeder Cattle: The New Safe Haven? Plus, Key Hedging Moves This Spring

Spring Markets Are Heating Up—Are You Ready?

When feeder cattle start acting like the safest asset on the board, you know markets are anything but normal. While outside markets shake things up—stocks plunging, crude oil under pressure, and Bitcoin following suit—ag commodities are charting their own course.

This week, we’re unpacking the major shifts and what they mean for hedgers, traders, and producers.

📉 Why the Stock Market Drop Matters for Ag

The Dow tumbled 850 points—and when big money exits stocks, it often pulls funds from other markets, including commodities. If investors need to raise cash, they may sell profitable positions in cattle, grains, or even crude oil.

🔹 What to watch: If stock market volatility continues, we could see unexpected price moves in ag markets. That means flexibility in hedging will be key.

🌽 Corn: The Seasonal Battle Begins

Spring means the age-old corn vs. soybean acreage battle is heating up. Right now, it feels like corn acres are winning—warmer weather, favorable insurance prices, and early planting conditions all favor increased acreage.

🔹 What to watch:

✔ March USDA Report – Will early planting translate into more confirmed corn acres?

✔ July vs. September Contracts – Which one offers better positioning for summer volatility?

✔ Weather & Insurance – Crop insurance prices support corn, but a sudden weather shift could change everything.

💡 Strategy Insight: If you’re considering long exposure for summer weather or policy shifts, think carefully about contract selection and timing.

🥩 Cattle: Hedging Strategies in a Bull Market

Feeder cattle have been rock solid, even as outside markets falter. But when everyone’s bullish, risk creeps in quietly.

🔹 What we’re watching:

✔ Hedging considerations: With high-priced cattle, should you be locking in risk protection?

✔ Banking conversations: More lenders are pushing producers to hedge—how should you structure the right approach?

✔ Volatility risk: If equities keep sliding, could liquidation spill over into cattle markets?

💡 Pro Tip: Hedging isn’t one-size-fits-all. Whether you’re buying puts, selling calls, or working with futures, make sure your hedge matches your cash flow needs and risk tolerance.

🚜 The Sleeper Trade? Soybeans Are Off the Radar

Nobody’s talking about soybeans, which might be a reason to start paying attention.

🔹 Key factors:

✔ Implied volatility is low – Meaning options are relatively cheap for hedgers.

✔ Seasonal price action – Summer weather could spark movement in beans.

✔ Global trade risk – China’s tariffs on Canadian canola oil are already shifting supply chains—will this ripple into soy markets?

💡 Strategy Insight: If you’re looking for a sleeper trade, soybeans might be worth a closer look before volatility picks up.

🎙 Want the Full Breakdown? Listen to This Week’s Podcast!

We dive deep into market shifts, hedging strategies, and key price trends in this week’s episode of Hedge Heads.

📢 Listen Now: Hedge Heads Podcast