Cattle markets are kicking off 2018 like it’s 2017, with strong prices and a strong basis in Western Canada, in spite of a higher Canadian dollar.
Factoring the jump in the Alberta fat cattle market last week to around C$167, the loonie rising over 80 cents, and a U.S. price of around $123, the spot basis in Alberta is currently somewhere near $12 over — the strongest its been in a long time.
“It’s an amazing story that we talked about for all of 2017 and it looks like we’re going to keep talking about it in 2018,” says Anne Wasko of Gateway Livestock in this latest Beef Market Update, recorded January 5th.
The recent cold snap will likely have set some cattle back, but supply on the front-end is very current and tight, as packers are seeing positive margins.
“You don’t get this kind of market jump if you don’t have pull on the demand side as well,” she notes.
Wasko joins RealAgriculture’s Shaun Haney to breakdown the factors driving the strength in the cattle market to start 2018, as well as the risk surrounding the Canadian dollar, the recent USDA report forecasting record meat consumption in 2018 (what will retail prices be?) and what to expect at the NCBA convention in Phoenix later this month, in this latest BMU: