The markets are volatile and could be described liked standing inside a hurricane at times. Only this time the hurricane was real. With Hurricane Sandy ripping through the east coast, the impacts on beef demand must be questioned. With the XL Foods hangover working its way out, feed yards and ranchers are trying to get… Read More
Tag: Gateway Livestock Exchange
With less cattle slaughter capacity in Canada, many ranchers and feedyards are concerned about the possibility for the feeder cattle and live basis to significantly widen. A basis that gets too wide makes the current Canadian model unworkable. Currently the live cattle basis sites at 16-18 which is the same as last year at this… Read More
The fallout from the XL Foods meat recall continues as the latest development has the CFIA shutting down the Brooks facility until corrective actions can be taken. In the meantime, consumer confidence continues to wane as the urban sector tries to wrap it’s head around what is happening. See all of all of the RealAgriculture.com… Read More
The recent meat recall at XL Foods is just another issue to provide adversity to the Canadian cattle industry. With one of two Western Canadian packers being forced to deal with a meat recall the lift lines have pushed an already wide basis wider. Additionally, the topic of a struggling pork industry has left… Read More
The US drought is capturing the attention of many people. One of the groups that is majorly impacted by the drought but has been lost in this meteorological drama is the beef industry. The US drought is playing a major role in the decision making of some beef producers and feedyards heading into the fall… Read More
“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… Read More
This edition of the Beef Market Update is…….complicated. Let’s start with the things we expected. We knew those summer lows were coming and we knew that risk management would be extremely valuable to producers in this volatile market. We even expected a little bit of the unexpected, i.e. a recent case of BSE in California…. Read More
One of the questions on every producers mind is, “How long can these prices continue?” Looking at the demand side, we don’t see any real indication beside the seasonal dips that regularly occur. On the skeptical side however, whenever we have an extended run like this we have a tendency to wait for the other… Read More
If a person were to describe the overall mood of this year’s NCBA Conference, it would be descibed as price bullish and margin bearish. As we have mentioned before, it’s a cautious optimism for feeders and packers, which comes with a recognition of the volatility that producers have gone through and are also facing in the future…. Read More
Volatility was the recurring theme in the cattle industry over 2011. The fact is that the mood created by that volatility has carried into 2012. Even with things looking up for producers, the violent swings of the 2011 market are tempering any optimism with caution. Those sentiments were apparent at this year’s Tiffin Conference as… Read More
It’s Christmas on this episode of the Beef Market Update and this year we get Anne to give us her Christmas list. 2011 hasn’t been a perfect year. The Beef Market Christmas tree has a few bright ornaments and a few broken branches to mark the 2011 calendar year. The year finished with some bright… Read More
Where will 2012 see the cattle market go? Who’s star will rise? there is potential for a great year for the cattle feeder depending on where the global economy will leave the Canadian Dollar and the demand for beef. That profitability could be tempered by rising feeder costs. The cow calf producer looks to be facing a great… Read More
The major story on every beef industry radar was last weeks WTO ruling in favour of Canada with regard to the U.S. Country Of Origin Labelling legislation. The resulting effect on the market……meh. The fact is, the entire industry is awaiting the U.S. appeal and the looong drawn out process to begin again. It’s a… Read More
Understanding the cattle market right now can be a real head-scratcher if you don’t know what to pay attention to. Trying to determine the factors influencing the wild market swings is like chasing the wind. There are a number of outside factors all exerting some kind of influence from unstable overseas markets to inside bids… Read More
The USDA October Cattle on Feed Report came out late last week with one number in particular well above U.S. analysts estimates. The October 1st on-feed inventory was roughly a percent above estimates, re-establishing the impact the drought in key cattle producing parts of the U.S. is having on the regular flow of cattle. The… Read More