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A Grainews market column says western Canadian feeder cattle basis has swung sharply while CME feeder futures have traded in a narrow range since November. Above-normal precipitation in the US Midwest and Southern Plains supports pasture conditions.
The column reviews backgrounding economics for grass cattle using August feeder futures near US$150.
Favourable pasture conditions could firm grass cattle prices relative to yearling and fed markets. Unstable western Canadian basis makes forward pricing harder for cow-calf and backgrounding operators.
grainews.caJerry KlassenFeb 22, 2019Not 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.
