Canadian Dollar

[intr3est]

I was wondering if anybody has any feelings on how the value of the dollar might affect the value of cattle when the border reopens in March? Is the price paid right now in the US enough to offset the price that Canadian cattle will be purchased at? Right now, what are fats being purchased for, compared to the value difference of the dollar? Not sure I'm saying this right, but would value any comments. If the dollar was stay at it's current US value, what would be the right thing to do, increase slaughter capacity, or sell the live animals to the states at a lower Canadian price? Just some thoughts. Enjoying the site, getting a lot of good ideas and input. I know, being a newbie, I ask too many questions!

[whiteface]

I don't think as many cattle are going to the States as some R-calfers would have you believe. Definatly our dollar will have something to say about that. But I'm not an economist and it's only my gut that also says none of us have or had planned on any open borders anytime soon and don't and won't have mass amounts of cattle "ready to go." I'm all for expanding slaughter capacity and testing if it helps open any new markets for us. Short term I think there will be a slight increase in prices but I also think we're aren't going to see anything like the prices we had in early 2001 and people that held on this long waiting for a windfall are going to be real disappointed. Still, I think the border opening short term will help a lot that are struggling, long term it's right back where we started and the push for our own packing and marketing industry needs to keep being addressed even after the 1st week of March or we've all learned nothing through all this heartache. Just my two cents worth. Hope you all have a nice evening!

[Cattleman]

well with the border open, shouldn't the basis go back to historical levels? About $5-$10 off the US price after adjusted for exchange rate. Prices in the US are high right now at about $90/cwt. this is about $107 Canadian, backed off would be about $97 in Canadian Dollars in Canada, but their price will probably drop some when the border opens. Maybe we will be at $90 Canadian in March? What do other think? This is a bit of a bump from where we are but not huge winfalls.