Beef Market Update – The Roller Coaster of Confusion Continues

In the last two weeks the feeder price and fat cattle price has moved in a very violent down and up swing. Is it based on fundamentals? I am not an analyst but someone that tries to follow the cattle industry closely and I have no way to tell you whether this market is going up or down next week. It seems to spinning more than just me around. Reading several pieces on different websites it is very clear that the cattle market the last two has shown ultimate volatility that proves lifting your hedge can be dangerous.

If you can’t seem to make any sense out of what’s going on in the cattle market, don’t feel bad, even market analysts are scratching their heads regarding the past few weeks. Anne Dunford in the latest edition of the Beef Market Update says that the last two weeks are not based on fundamentals at all and instead more on money flowing in and out. With a weak US economy you would think beef demand would be weak but the reverse is true. In April, Canada was the highest importer of US beef globally. And finally the question of whether the Canadian basis will widen to its more traditional summer levels is a deep concern to the producer.

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Shaun Haney

Shaun Haney is the founder of RealAgriculture.com. He creates content regularly and hosts RealAg Radio on Rural Radio 147 every weekday at 4:30 PM est. @shaunhaney

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