In the last month, live cattle prices have finally stabilized and it’s welcome relief for everyone in the cattle business. Fundamentally, what is supporting this stability? According to Anne Wasko, with Gateway Livestock, there are tighter cattle supplies, cattle feeders are current, carcass weights are lower than a year ago for the first time since August 2013, and there is the possibility of stronger beef demand heading into the holiday season.
Cattle feeders will likely be asking themselves, “How aggressive do I want to get to fill the pens I just cleared out?” Ranchers will be cheering for higher price levels to close out the fall run.
Arguments continue to build for a weaker Canadian dollar even with the current 75 cent levels. Of course a lower dollar helps offset negative feeding margins, Wasko says.
You’ll find that and more in this week’s edition of the Beef Market Update with Anne Wasko and Shaun Haney. Enjoy!