I am still not sure that the cattle markets are functioning normally yet and supply/demand is the reason for our market prices. That said the price drop we saw last week could be due to normal market forces. U.S. CME live cattle and feeder futures dropped last week the equivalent of CAN$26 a head. Alberta prices dropped about $50-$60 a head. That could be a normal market reaction in these circumstances. There certainly was no evidence that the feedlots were passing the $56 they expect to receive from Paul Martin’s announcement down the supply chain yet.
Yes, I would think there were more feeder calves sold last week than in previous weeks. The only numbers I have found were LIS inspections for February 04 which say that there were 120,000 feeder calves sold in February 04 as compared to 205,000 in February 03, a difference of 85,000 head that either don’t exist or are still on the farm. I am not sure that so many calves sold last week that they overwhelmed the market.
There still seems to be feedlot buyers for the calves but the feedlots are penciling in a hefty profit. I would think that as expectations of the border opening increase that the U.S. market is going to influence our feeder prices more and more.
Yes, I would think there were more feeder calves sold last week than in previous weeks. The only numbers I have found were LIS inspections for February 04 which say that there were 120,000 feeder calves sold in February 04 as compared to 205,000 in February 03, a difference of 85,000 head that either don’t exist or are still on the farm. I am not sure that so many calves sold last week that they overwhelmed the market.
There still seems to be feedlot buyers for the calves but the feedlots are penciling in a hefty profit. I would think that as expectations of the border opening increase that the U.S. market is going to influence our feeder prices more and more.
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