Expect the unexpected is one of those phrases we’ve been trained to associate with something negative. In the reality of this global economic situation, that is understandable. Sometimes however, we get an unexpected silver lining type situation. The story surrounding our Canadian dollar and our cattle exports is one of those. A weaker dollar,(even if it’s not a true reflection of our economy) does present an unexpected opportunity for our cattle sector. If all indications are true, it’s also an opportunity that won’t last forever.
As the feeder run started there was much focus on the profitability of the rancher and the losses facing the feeder. With the decrease in the Canadian dollar feedyards are looking at lockable profits in these feeder cattle. With feedyards and ranchers looking at some profits, the same may not be said for the packing plants.
In this episode of the Beef Market Update, Anne and I discuss the Canadian dollar, the impact of high placements on futures and the importance of “striking while the iron is hot” in this volatile environment.
If you cannot see the embedded video below click here.