Coming off some near-month contract highs of $200-/+ it’s no surprise to see futures falling as the week closes out, but cash cattle in the south ticked higher as they caught up to northern prices this past week (Check out the related story on cattle futures here).
The cutout did show signs of weakening in the later half of the week, says Anne Wasko of Gateway Livestock Exchange in this episode of the Beef Market Update, but Wasko says that it is not unexpected considering the season, and the run being as strong as it has been.
As for Alberta, cash markets had some catching up to do there as well and are now up 10 to 15 higher dressed, says Wasko. While they have been moving higher, the basis has still remained really wide and really weak.
The U.S. Cattle Inventory Report for January 1 will be out late Friday, January 31, and provides an overview of cattle numbers and trends. The trends and analysis suggests the possibility of the U.S. having the smallest calf crop since 1940 with a possible decline of 1.5 per cent. The total cattle inventory is also expected to be down by approximately one per cent, says Wasko, but there isn’t agreement on heifer retention levels.
Wasko and RealAgriculture’s Shaun Haney also discuss the U.S. Cattle on Feed Report, Mexican feeder cattle not coming north because of screwworm, and potential of tariffs on Canadian goods.
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