It has been a challenging year for cattle feeders in the respect that unhedged cattle have performed well financially but the majority of cattle for progressive producers were contracted or hedged. On top of this is the fact that replacing cattle in the feed yard is very expensive based on the break evens that are being calculated.
With record high fat cattle prices in the past month, there are reasons to be optimistic but also be very cautious. In this weeks episode of the Beef Market Update, Anne Dunford and I discuss four key topics that apply to the world, North American and domestic market place.
- Has the tragedy in Japan and Middle East unrest had any impact on the global industry?
- Why are placements of calves under 600 pounds up 25% and cattle over 800 pounds down 12% in comparison to a year ago in the United States.
- The packing plants in Brooks and High rive are killing only 4 days per week. Are we more likely to see a three day week or five day week next?
- Have we seen the spring highs for fat cattle prices in Canada yet?
If you cannot see the embedded video below click here.