# Understanding feeder cattle price structure - Grainews

> 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.

- Date: 2019-02-22 · published 2019-02-22T12:00:00.000Z
- Category: market · region Canada · magnitude low
- Page: https://feedsoft.ai/events/60751-understanding-feeder-cattle-price-structure-grainews
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

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.

## Read by commodity

- FCATTLE: neutral

## Sources

- grainews.ca: https://www.grainews.ca/cattlemans-corner/understanding-feeder-cattle-price-structure/

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