Live cattle futures have found reasons to rally since early September, even in the face of large placements in a bearish cattle on feed report last week.
It’s a combination of market fundamentals — profitable margins, lower carcass weights, and strong demand — driving the market out of the lows set around Labour Day, says Anne Wasko of Gateway Livestock.
Calf prices in Western Canada are also ahead of last year, in what Anne describes as a sellers’ market right now — partly due to the Canadian dollar dropping by somewhere around a nickel in the last six weeks.
So can this bullish tale continue? Given the big supply story coming to fruition, will demand remain strong (we are headed into U.S. Thanksgiving and the holiday season)?
Anne discusses with Shaun Haney in this latest edition of the Beef Market Update: