When things are profitable for the feedlot operator, we generally see those operators start to fill pens. That’s the historic trend and it just makes good sense. However, the Canfax numbers for March show cattle placements down again in Canada. As the number of cattle on-feed drop, producers who depend on those numbers begin to get nervous. Farmers looking for replacements are seeing that the animals just aren’t there. While there may be a “long time coming” silver lining situation for the cow calf producer, the volume operator is starting to feel the pinch. The closure of the XL Foods plant in Calgary due to low cow supply, may be the just the start of the margin operators woes or it will be a non-effect and life goes on. Time will tell.
This week on the Beef Market Update, Anne Dunford provides us with some insight on the U.S. and Canadian on-feed reports as well as some thoughts on the upcoming U.S.D.A. report.
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