While there have been a few days lately where cattle values have ended the day in the green, the trend is still headed lower. And quickly.
Cattle futures are now at levels we haven’t seen since the fourth quarter of 2010.
“We haven’t been here for a long time. We really weren’t expecting these levels this soon from a supply perspective,” notes Anne Wasko of Gateway Livestock in this latest Beef Market Update, recorded October 14.
Even if you wanted to pick the more favourable perspective, neither fundamental nor technical signals are showing signs of the market reaching a bottom at this point.
“It’s probably a time to stand back rather than make a bold decision that the markets have made their bottom,” she says. “I’d be more cautious and let hte market show me that it’s clearly made a bottom.”
Meanwhile, we’re starting to see some US feeder cattle make there way north, thanks to favourable pricing in Canadian dollar terms, explains Wasko.
Shaun and Anne chat about the new lows, the relationship between wholesale and retail prices heading into the U.S. holiday season, some potentially good news about the Trans-Pacific Partnership, and why the heck Tyson Foods is buying shares in vegan burger company: