CANADA’S CATTLE EXCHANGES FOR THE FIRST TIME EVER, as Canadian cattle producers are selling futures on the global market.
The futures traded by Canadian exporters are typically a reflection of their farm-gate prices, and are not an accurate indicator of the market price of the cattle.
Canadian futures are usually set to expire in December.
In a tweet, CFIA Cattle futures exchange director Chris MacLean tweeted that Canadian futures are set to “begin trading on the CME Cattle Futures Exchange at 5:30 pm ET (10:30 a.m.
ET) and end trading on CME Group CME.”
That means that Canadian exporter will have to buy the futures before they expire.CFIA said it’s expecting the Canadian futures to have a positive impact on the Canadian cattle market, as it’s a direct link to the price of Canadian cattle.
Cattle prices, which have been trending downward recently, have surged in recent weeks.
CFIA said that in the last week, Canadian cattle prices have been “well above their recent levels.”
Canadian exporters typically trade their futures on CACO, a major international trading hub.
The exchange is the biggest clearinghouse for futures, and CFIA is the largest trading platform for Canadian cattle futures.