Spot Market

The spot market is also called the “cash market” or “physical market”, because prices are settled in cash on the spot at current market prices, as opposed to forward prices. Another option or manner of spot market pricing is creating a transaction for which cattle will be expected to be delivered in one month or less. Though the cattle may be bought and sold at spot prices, the cattle are traded on a forward physical market for when the animal will deliver.

The majority of producers market their cattle in one of these two ways: If at an auction with heavier cattle they are personally operating under the first definition while the order buyer purchasing their cattle is operating under the second arrangement.

Although an individual has little control of market pricing we can still help producers improve their bottom-line in this way by the direct relationships we hold with a number of feedlots and buyers. If you choose to work with us for consecutive years we are then capable of using your past performance data to create precise pricing for your cattle and take them out of the blended pricing of the commodity market.

All price discovery, even if two producers are on the same truck, is done individually for your cattle. If you’ve made the improvements, isn’t it time you are paid for them?

If you have questions or would to have discussion regarding your marketing program, please contact us at (931) 996-2253 or info@totalcattlesolutions.com