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Anne Wasko of Gateway Livestock Exchange says the May 1 Cattle on Feed report, with cattle inventory the highest since the series began in 1996, was technically bullish but had little impact on Monday's open. August live cattle futures have fallen from about $120 in mid-April to near $105, and a wide basis is cutting into local market cattle values in Alberta.
A record feedlot inventory and wider basis reduce what producers receive for cattle, and the sharp futures decline signals softer fed cattle values ahead. Feeders should expect pressure on cattle prices and tighter margins on local sales.
realagriculture.comRealAgriculture News TeamMay 31, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Record cattle on feed and the decline in futures from April highs reflect bearish supply and sentiment backdrop.
