Home The Spread Risk During the last weeks of 2020 and the first of 2021, the Alberta-Texas fed cattle price spread went positive. That is, Alberta prices were stronger than prices in the United States. That was fascinating given the abundance of cattle and the fact that the industry was moving into and out of short kill weeks. This is especially puzzling given the large quantity of cattle on the set-aside program that are to be marketed in January. The local spread or basis is supposed to reflect local supply and demand. The operative words are “supposed to.” Over the last 20 years it has been almost impossible for me to see any statistical relationships between supply-demand and the spread. by: Kevin Grier Screen Shot 2021-02-05 at 7.08.28 AM
Screen Shot 2021-02-05 at 7.08.28 AM
