how about that cattle cycle..

[cswilson]

Where pray tell.

[kato]

We've been in this business for 33 years now, and we've seen a lot of ups and downs. What's going on now doesn't feel like your usual cattle cycle type price drop. I think Randy's right about the ethanol and BSE driving things. This is more like last winter when the corn specualtors got all revved up and cattle tanked for a while.

The big feeders are building a cushion into the price of calves to cover any further fall in price, and we have to remember that they will make it as big as they can. We're working both sides of this street because we're buying steers to background, as well as having our own calves. For now we'll keep buying, but we're going to hold on to ours for the time being and see what happens.

I think the Canadian cattle industry could well be going through a downsizing right now though, with guys who would have retired a couple of years ago but held on for better returns finally saying they've had enough. It's happening around here quite a bit. Lots of bred cows for sale. I counted up the number in a column in the Co-operator for sale ads, and within about half a page there were over a thousand bred cows for sale. Big and small herds from 4 cows to a couple of hundred.

The cash advance is up and running in Manitoba. MCPA is overseeing it.

I guess if we have to try and find a bright spot in these prices, I guess having low year end inventory values for CAIS could be one. LOL ;-)

[Reitnorf]

southeast sask cswilson