Home Crop Monitoring Beef Market Update: U.S. cutout price signals continued rise in demand

Beef Market Update: U.S. cutout price signals continued rise in demand

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It’s been the story for weeks, however sadly, nonetheless an enormous one — there are massive elements of the nation which can be dealing with drought, and it’s severely impacting the meat business.

Seeing as that is the Beef Market Replace, it wouldn’t be pure if we didn’t discuss the price facet of all of this as properly.

Anne Wasko, of the Gateway Livestock Trade, says there may be nonetheless some strong information on the U.S. money costs.

“They were up a dollar in the south — $121 to $122, and northern prices were up two to three dollars — $124-$125,” Wasko explains. “The cutout is still good in the U.S., up another $17 this week at $292.50. This is just continuing to tell us that export demand, restaurant demand, and the U.S. economy is continuing to get some wheels under it.”

Domestically in Canada, exports are trying a bit extra sideways, which, as Wasko notes, is a tad discouraging as we watch the U.S. market proceed on the rise.

“Usually this is where your summer lows are being put in, and the U.S. market is really holding solid. The Alberta and the Ontario market for that matter are just steady again this week, we’re right around that $150 mark this week in Alberta. That’s $250-$253 dressed, and in Ontario, $258-$260,” she says. “So again, just steady.”

One other a part of the drought is an unlucky early begin to fall run, as calves are headed to city already, and in some areas, have been for a couple of weeks now.

“Sales that normally wouldn’t even be operating in the summer due to lack of volume, are running. The live auction markets have been quoting volumes significantly larger — cause usually it’s zero — especially in those hard hit drought areas. Manitoba is reporting big volumes in the Interlake region. It’s an early run all the way around, and it’s not by choice. People aren’t choosing to do this — they are being forced to.”

For the feedyard of us, many are questioning how this may pencil out. The issue in Western Canada lies with the sky-high feed costs.

“We know it’s dismal out there, but how dismal it is or isn’t it in terms of yield? So you’ve got spot feed prices at crazy high levels. I don’t think anyone is suggesting that these numbers work. So I guess the question out there, why have some prices stayed as steady as they have? Is it that optimism that we continue to see in the futures market, from next year (2022), is it some expectation that new crop corn prices are going to be lower than what we are seeing for old crop as the futures indicate?,” Wasko questions. “Again, questions and answers there. But on paper — no, those numbers don’t work.”

Try the total dialog between RealAgriculture’s Shaun Haney and Anne Wasko, under:

 

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