Where will 2012 see the cattle market go? Who’s star will rise? there is potential for a great year for the cattle feeder depending on where the global economy will leave the Canadian Dollar and the demand for beef. That profitability could be tempered by rising feeder costs.
The cow calf producer looks to be facing a great year as well with a real solid demand for feeders and short supplies.
The packer is the most vulnerable as the potential still exists for squeezing margins due to a strong retailer hand. As mentioned earlier this week, packers need a rise in the wholesale beef price to boost margins and raise the incentive to lengthen kill weeks.
In a reversal of comment this week Anne Dunford and I talk about the bull versus bear scenario for the sector. For once I am the bull and Anne is more bearish. I am a taurus so maybe I should be the bull more often. Enjoy the episode.
If you cannot see the embedded video below click here.