A changing supply environment has the second half of 2017 shaping up much differently for cattle markets than the first.
“Already things are changing. If you’re in Canada, you’re well aware — and we’ve talked about this all year long — we’ve been in this strong basis environment where Canadian prices, because we’re tight on supply, are trading above or higher than the normal relationship between us and the US,” says Anne Wasko, marketing analyst with Gateway Livestock.
The strong basis and Canada’s dollar being valued under 80 cents (USD) were good for the Canadian beef market, says Wasko, but the dollar has gone up, and ScotiaBank now predicts it will be right around 87 cents by the end of 2018.
In this episode of the Beef Market Update, recorded September 15, 2017, Wasko joins RealAgriculture’s Shaun Haney to discuss futures chopping sideways (are we about to see a fall bottom?), cattle feeders’ red margins, and the upcoming fall run:
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