Beef Market Update: Record basis levels set to change

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The beef markets are riding an unusually high basis in both Canada and the United States, but that’s set to change.

“So over the next eight weeks — between now and when June goes off — we will see the two converge,” says Gateway Livestock’s Anne Wasko, adding that in 2015 basis was +20 when June became spot month, and by the end of that month was at par.

On the trade front, both Canada and the U.S. are seeing positivity.

“Canada’s beef exports so far this year are holding strong,” says Wasko. “We’re up seven percent compared to a year ago, and kind of the ‘leaders of the pack’ for Canada’s beef trade is the U.S. and Japan.”

Meanwhile, U.S. beef exports are up 12 percent year-to-date, with the Republic of Korea, China, and Hong Kong leading the way.

Wasko joined Shaun Haney to discuss the beef markets on RealAg Radio Friday. Hear the segment below:

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