Beef Market Update: Cattle price yo-yos, herd numbers climb, and volatility shakes futures markets

"Futures markets have been all over the place... that volatility and uncertainty, given what's going on geopolitically, is not going to stop and potentially could get worse. Despite the uncertainty, Canadian cash prices remain historically strong, with Alberta fed cattle setting a new all-time high, with Canfax reporting the steer market averaging $320 per hundredweight, surpassing the previous record set in September."

"We operate in a North American market. U.S. herd contraction and a closed Mexican border continue to support tight supplies. The newly released Canadian cattle inventory report points to modest growth, with beef cow numbers increased two percent nationally to 3.4 million head, while replacement heifers rose five percent."

North American cattle markets experience significant volatility driven by geopolitical uncertainty and tight supplies. Canadian cash prices remain historically strong, with Alberta fed cattle reaching all-time highs at $320 per hundredweight in February, up 14 percent year-over-year. Replacement cattle prices show even stronger gains, with 850-lb steers and 550-lb calves approximately 33 percent higher than the previous year. The latest Canadian cattle inventory report reveals modest herd growth, with beef cow numbers increasing two percent to 3.4 million head and replacement heifers rising five percent. However, this expansion of roughly 65,000 cows remains relatively small within the broader North American context, where U.S. herd contraction and a closed Mexican border continue supporting tight supplies and elevated prices.

Read at Realagriculture