# Beef Market Update: Wide basis shaving dollars off local market cattle - RealAgriculture

> 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.

- Date: 2019-05-31 · published 2019-05-31T12:00:00.000Z
- Category: market · region Canada · magnitude low
- Page: https://feedsoft.ai/events/59209-beef-market-update-wide-basis-shaving-dollars-off-local-market-cattle
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

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.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| FCATTLE | 2019-05-30 | 5 | -7.1% | -3.7 | Record cattle on feed and the decline in futures from April highs reflect bearish supply and sentiment backdrop. |

## Sources

- realagriculture.com: https://www.realagriculture.com/2019/05/beef-market-update-wide-basis-shaving-dollars-off-local-market-cattle/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.