It’s been the story for weeks, but unfortunately it’s still a big one – there are large parts of the country facing drought and this is having a serious impact on the beef industry.
Since this is the Beef Market Update, it wouldn’t be taken for granted if we didn’t also discuss the pricing side of all of this.
Anne Wasko of the Gateway Livestock Exchange says there is still solid news about US cash prices.
“In the south they went up by a dollar – 121 to 122 US dollars, and in the north they went up by two to three dollars – 124 to 125 US dollars,” Wasko explains. “The clipping is still good in the US, up another $ 17 this week to $ 292.50. This just continues to tell us that export demand, restaurant demand, and the US economy still have some wheels under them. “
At the local level in Canada, exports are moving a bit sideways, which Wasko notes, is a little daunting as we watch the US market continue to rise.
“Usually this is where your summer lows are set and the US market is doing really well. The Alberta and Ontario markets are just stable again this week, we’re in Alberta exactly around the $ 150 mark this week. That’s up $ 250-253 and in Ontario $ 258-260, “she says. “So again, just steadily.”
Another part of the drought is an unfortunate early start of the fall run as the calves are already driving into town, and in some areas for several weeks.
“Sales, which would normally not run in the summer due to a lack of quantities, are running. The live auction markets offer significantly larger volumes – because it is usually zero – especially in the badly affected drought areas. Manitoba reports large volumes in the Interlake area. It’s an early run and it’s not voluntary. People don’t choose – they are forced to. “
For the Feedyard folks, many wonder how this will turn out. The problem in Western Canada is sky-high feed prices.
“We know it’s bleak out there, but how bleak is it in terms of yield or not? So you have spot feed prices at insanely high levels. I don’t think anyone is claiming these numbers work. So I ask myself the question out there, why have some prices stayed as stable as they are? Is it this optimism that we see in the futures market from next year (2022), or do we expect corn prices for new crops to be lower than what we see for old crops as the futures indicate? ”Wasko- Ask. “There, too, questions and answers. But on paper – no, these numbers don’t work. “
Check out the full conversation between RealAgriculture’s Shaun Haney and Anne Wasko below: