This friday is the release of the USDA Cattle on Feed report and the early consensus is that US feedyard placements will be confirmed tighter. As Anne discusses in the video, this is the scenario that many thought would play out last year but the drought proved otherwise. An interesting issue is that there is some real varying opinion on the severity of drought in some areas of the US which is creating a gap in the expectations of the USDA cattle on feed report.
Sadly, the summer is turning out to be as nasty for the cattle business as we first thought. As producers look forward to the fall there is real focus from both ranchers and feeders on what the price of feeder cattle will be. With a summer of financial bleeding, the Canadian feeder may not have the lump of credit at his disposal to go crazy at the auction market. The question is whether the US feeder will come into the Canadian market to bring the cattle south instead?
In this episode of the Beef Market Update, Anne Dunford talks about the need tighter summer US supplies, improving US packer margins and an update on the fall forward contracting of feeder and fat cattle in the face of an ugly summer or fed cattle.
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If you cannot see the below embedded video interview with Anne Dunford, click here