When things are profitable for the feedlot operator, we generally see those operators start to fill pens. That’s the historic trend and it just makes good sense. However, the Canfax numbers for March show cattle placements down again in Canada. As the number of cattle on-feed drop, producers who depend on those numbers begin to… Read More
Barley is bumping off of $200, corn is $7.00 per bushel and dressed cattle prices are just under $200. What is going on here? With inputs and cattle prices both in bull runs it is easy to get caught up in the assumption that this will last forever. As the old saying goes, what goes… Read More
It has been a challenging year for cattle feeders in the respect that unhedged cattle have performed well financially but the majority of cattle for progressive producers were contracted or hedged. On top of this is the fact that replacing cattle in the feed yard is very expensive based on the break evens that are… Read More
I can remember back earlier in the year when Anne Dunford told me that, “higher prices doesn’t mean higher profits.” It would seem that this is proving to be very true in the cattle markets. Feedyards that locked in with contracts are disappointed and wishing more cattle were being sold in the cash market. The… Read More
It is really hard to find analysts, feeders and ranchers that are bearish on this cattle market. The industry as a whole is pretty bullish in comparison to prior years and especially in comparison to two years ago. Everyone is bullish prices in 2011 but are they bullish margins and if they are not, should… Read More
When you look back at 2010 it was a real turnaround year for the cattle markets. Both the Canadian feedyard and the rancher did quite well considering all the volatility in the marketplace. We saw higher calf prices and fat prices throughout the fall run which was much needed and required more some people to… Read More
You can look at volatility in two ways. Volatility in the cattle markets means that you may be exposed to risk that you did not plan for. For example, earlier this decade when the CDN dollar moved from the low 70’s to par in a violent upward fashion which caught many people off guard. The other… Read More
Some things change and some things just stay the same. Some things are predictable and some things are not. As expected carcass weights have peaked for the fall as the trend downwards has begun. While at the same time basis levels have been strong resulting in stronger pricing. According to Anne, pre-2003 basis levels were… Read More
In this weeks episode of the Beef Market Update, Anne Dunford discusses the need for cattle feeders to see feed prices and Canadian Dollar go lowr based on the calf placement prices. The reality is that this will probably not happen in the short term, which will lead to losses in this turn of cattle… Read More
We thought it would be cool to do something for the Beef Market Update this week. This week I collected some questions from viewers and gave them to Anne. We are going to call it JUST ASK ANNE !!! We think that you will really like this segment and we plan to do it more… Read More
Not since the early 2000’s have Canadian feedyards imported US feeder cattle in great numbers. Rumours are swirling that 2010 may be the year that this practice becomes popular again. There is no doubt that this will not sit well with Canadian ranchers due to the possible extra supply dragging down the current healthy calf… Read More
With the US market moving higher this week, Canadian producers have also enjoyed some higher fat sales as well. Immediately the resulting question is whether or not there is follow through in this market or will the price slowly slide down. The United States has done well exporting beef this year with its weaker dollar…. Read More
In this weeks Beef Market Update Anne Dunford and I discuss the difficult market for feeders right now as cattle feeders await the arrival of the calf run. Limited calves have come to the market so far but the ones that have have a nice little premium attached. With a flat fat cattle market, weaker than… Read More
This year will be remembered as the year of expecting the unexpected. Whether you are farming, cattle feeding or ranching the weather and the market has been very wicked and harsh at times. This week on the Beef Market Update with Anne Dunford, we discuss the fact the yearling run is over but we are… Read More
Every equation has a set of variables that impact the outcome. All variables have different levels of sensitivities and betas. The current fall run is shaping up to be a very interesting one. All the variables seem to be up in the air and creating a real sense of uncertainty. The interesting fact is that… Read More