Cattle markets experienced sharp volatility after reaching record highs, driven by softer U.S. cash trade, growing Western Canadian feedlot inventories, and renewed uncertainty about beef demand. U.S. southern cash prices in Texas and Kansas eased to US$258 to $260 live, down from US$260 to $265 the prior week, while northern dressed trade moved to US$408 to $410. Alberta remained steady at record-high dressed levels of US$575 to $580. Futures reacted aggressively to multiple bearish factors, including record retail beef prices, demand worries, a Cargill Fort Morgan plant lockout, expectations for a bearish U.S. on-feed report, and renewed discussion about reopening the Mexican border. Feedlot inventories increased contra-seasonally, supported by slower marketings, higher placements, longer days on feed, and strong U.S. feeder cattle imports. Canadian beef exports dipped slightly in March, while Mexico and Asian sales continued to grow.
"Well this is one week I wish we didn't do a double header... nothing ever happens gently in our business,"
"U.S. cash cattle trade softened, with southern trade in Texas and Kansas reported at US$258 to $260 live, compared to US$260 to $265 the previous week. Northern trade was in a similar range, with dressed trade at US$408 to $410. Alberta, however, held steady at record-high levels, with dressed sales at $575 to $580 delivered."
"Wasko says several concerns hit the futures market at once, including record-high retail beef prices, worries over demand, the lockout at Cargill's Fort Morgan plant, expectations for a bearish U.S. on-feed report, and renewed discussion around reopening the Mexican border to cattle."
"Western Canadian feedlot inventories also continue to build, with Canfax reporting another contra-seasonal increase in Alberta and Saskatchewan on-feed numbers as of May 1. Slower marketings, higher placements, longer days on feed, and strong U.S. feeder cattle imports are all contributing to the larger inventory."
Read at Realagriculture
Unable to calculate read time
Collection
[
|
...
]