We all knew that with this much upside seen in the cattle complex, volatility was going to be an issue. But even so, it never becomes an easier devil to wrestle with.

Ahead of last week's turmoil on Friday that ensued when President Donald Trump said he is working on a deal to cheapen beef prices in the United States, the futures complex nearby broke in two. The live cattle contracts plummeted $5 to $6 lower, and the feeder cattle contracts closed at their limit lower, down $9.25. (Click here to read more on the topic: https://www.dtnpf.com/….)

Meanwhile, the market's fundamentals stayed par for the course and performed as if nothing had shaken the marketplace. The fed cash cattle market saw Northern dressed cattle trade $9 higher and Southern live cattle trade $5 higher than the previous week's weighted average. Feeder cattle demand remained incredible, as the CME feeder cattle index for Oct. 17 closed at $376.15.

Now granted, on Monday when the market opened following the pandemonium on Friday, feeder cattle prices were a touch weaker in most sales, as buyers were leery of the board's unstable position. However, that's the feel of the entire market following Friday's uproar.

As cattlemen and traders alike reassess the cattle complex and try to determine where to go now, a couple of things come to mind.

First, I believe it's important to recognize that turmoil like what the market saw on Friday is going to happen more often in the cattle complex. This is because of large daily trading limits, more interest and market participation from money managed funds, algorithmic trading and the faster pace at which the world operates. I wish it wasn't so, and I wish the cattle complex wasn't affected by external chaos, but it is.

Which logically brings up the second point: You must know your business, inside and out, because the market isn't as simple as it once was. Interest rates are still relatively high, input costs are not going down, and the market is seeing a greater level of volatility. This makes it even more imperative that you know your business. You need to know where your largest streams of revenue come from and which ones you could grow to be bigger. You need to know your largest expenses and which ones are and are not a priority. And, you need to know what your marketing plan is for the year ahead, and have options laid out if an unforeseen business hiccup does arise.

The fact remains that the market is primed to get stronger from here well on through 2026 as the market's tightest supplies lie ahead of us. But that doesn't mean that the market won't see challenges, unforeseen disruptions, and that capturing true profitability will be easy.

I can't help but think of the Bible verse, Luke 12:48 (NIV), which said, "From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked." I don't think any words could ring truer for what the cattle complex is going to require for producers moving forward. Sure, there will be those operators who get paid well on their calves simply because supplies are at a multi-decade low, but for those who are committed to securing as much profitability as possible through this strong time, more is going to be required.

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

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