“The number one cure for high prices is high prices” That also was a pretty good reflection of the mood surrounding the Saskatchewan Stock Growers annual general meeting this week.
There is great optimism for the rancher heading into the fall run as I expect feeder cattle to have strong prices attached to them. Whether those feeders end up in the US or Canada is a debatable question considering the impending doom for the Canadian feeding advantage as barley rises into a declining corn price.
Having said that many ranchers are hesitant to get to optimistic and aggressive on herd building in case there is a correction to the cattle market in general. Feedyards are placing cattle with a projected loss and money supply is getting tighter for the feedyard. Remember that ranchers have to think inn longer increments than the rest of the industry. Ranchers are thinking about how healthy this market will be in 3 years not just this fall. With the losses that have been sustained by ranchers over the past 8 years, the last thing ranchers want to do is purchase peak priced pairs or heifers instead of being more patient to expand the herd.
I hope that you enjoy this episode of the Beef Market Update from the Cypress Hills at the Saskatchewan Stock Growers Annual Meeting.
If you cannot see the embedded video below click here.