Cash cattle vs futures prices

Hi everyone, 

 

Was hoping someone can help. I'm doing an economics assignment and decided on US cattle, decided to pick this subject because I live in Hong Kong which is in Southern China, and China just opened up its market to US beef. One thing I noticed is that cash cattle prices are way higher than futures. Why is this? Shouldn't the prices converge especially in the June contract which is almost at expiration? Like someone could buy the futures and sell the cattle in the cash market to make the difference? 

 

Also in a tight market like this and with feed prices so low is it more beneficial to buy feeder cattle rather than live cattle?

 

Do you guys expect prices to keep going up because of China or just demand in the domestic market?  

 

Any help will be appreciated because I don't come from a farming background. 

 

Thanks! 

Cash cattle vs futures prices