Beef Market Update – Perfect Market Storm Creates Increased Financing Needs for Feeders

There are good times and there are bad financial times for cattle producers. So far 2014 has been a period of very positive margins. As feeder and live cattle prices have soared higher, the Canadian Dollar and feed costs have lowered quite rapidly. This has put pressure on feedyards to find additional financing requirements in order to finance the new feeder cattle coming into the yard. Your cattle line of credit five years ago does not even come close to filling your yard today. The other issues Shaun and Anne discuss are cattle herd numbers, retail beef prices and the need to be proactive in your hedging even though margins are positive.

If you cannot see the above embedded audio player, CLICK HERE

 

Shaun Haney

Shaun Haney is the founder of RealAgriculture.com. He creates content regularly and hosts RealAg Radio on Rural Radio 147 every weekday at 4:30 PM est. @shaunhaney

Trending

Wheat prices jump into August — This week in the grain markets

This week, winter wheat prices touched a three-year high, but it didn’t last. Chicago SRW wheat prices for September 2018 gained 5 per cent or about 26 cents US/bushel to close at $5.56. While the December 2018 contract was up 5.4 percent — or nearly 30 cents — to finish a tad under $5.80. In…Read more »

Related

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.