The whole North American cattle industry is focused squarely on the drought situation in the United States. The realities of aggressively pulling animals forward is sure to play on the market and prices through the New Year. With last Friday’s release of the September 1, 2011 Cattle on Feed Report from the USDA, we wait for the markets to react and try to get a picture of how that may play out into 2012.
The effects of the continued dry weather on grasslands in Texas are mounting as calf placements continue to remain high, eliminating any kind of retention program for ranchers and shifting marketing plans. That will no doubt contribute to an already problematic calf supply situation. So what are the implications for the Canadian producer? Could there be any potential opportunity for us? I spoke with CanFax Senior Market Analyst Brian Perillat about the report and what it means for the industry.
Get the USDA report here
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