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Canadian Cattlemen market commentary by Jerry Klassen explains the CME feeder cattle futures contract and the cash-futures basis. It notes steer prices fell from over $300/cwt in September 2015 to $198 in February 2017.
The piece encourages hedging and use of Western Livestock Price Insurance.
The article is educational on risk management and does not identify a new supply or demand shock. Basis and hedging dynamics influence how Canadian producers realize feeder prices.
canadiancattlemen.caJerry KlassenApr 1, 2017Not 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.
