With every bounce off of a new low in the cattle market, there’s hope prices have finally bottomed out.
October live cattle futures in the U.S. have recovered by $7-8 in the last week, after dropping to around the $100 mark in the first week of September.
“Hopefully we can look back, and I know it’s all relative — these prices are still very low and nobody’s making any money on the finishing side, but the bottom line is it looks like it’s getting better,” says Anne Wasko of Gateway Livestock Exchange, joining Shaun for this edition of the Beef Market Update.
One reason is there is a sense of relief coming in the grocery store, as lagging Canadian retail prices appear to have started tipping lower — just in time for the upcoming holidays season.
“We really need it as we head into the fourth quarter, and that’s a great time for beef movement, especially those middle meats at US Thanksgiving, Christmas, New Years…,” she notes.
Wild triple-digit losses for feedlots, break-even concerns at the ranch level heading into the fall run, and improving technicals on the futures market — Anne and Shaun catch up on what’s happening throughout the beef market as we pass the middle of September: