Feed Grains

[TOM4CWB]

Charlie;

Grain farmers should give their heads a shake!

The USDA submitted a federal rule yesterday that may very well open the U.S. border to cattle imports from Canada on March 7, 2005.

This would mean that in 60 days as long as mandatory review passes, cattle will be able to move south to be fed down there.

Good news for the cattle farmer.

Bad news for the Grain farmer.

This could easily reduce the demand for feed grains.

And the young cattle will move closer to the 11 billion bushels of corn.

Short term... this significantly reduces the demand for feed grains in Canada, particularily western Canada.

Perfect storm Charlie!

Watch for that WAVE!

[rain]

Have I missed something? Currently the feedlots are running 80-90% of capacity.I'm not sure but isn't the calf run over? The border opening in my mind should not have that much affect to this years feed grain prices. Unless cattle on feed in Canada get sent to the US to be finished!
Or am I missing something?

[JD4ME]

Rain
There are still a tremendous amout of calves in backgrounding lots and on farm yet and these calves will move somewhere for finishing. Be it into a finishing lot here or south.