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Finding opportunity in recent livestock markets

Market analysts say it's been an interesting 30 days for both the beef and hog sectors.

Gateway Livestock Market Analyst Anne Wasko says supply, trade and the dollar for both the cattle and hog markets in the United States have all played a role in market prices lately. Both the hog and cattle markets are under pressure, which is influencing Canadian prices.

"More on the futures markets, than on the spot or cash markets," Wasko says. "Futures markets are trying to anticipate what lies ahead this summer, and what lies ahead is expected to be record beef and pork production in the U.S.," Wasko says.

As a result, producers will start to see lower price trends.

Sliding

"If you haven't been able to prepare in terms of pre-pricing management or some risk management, then you are in a sliding market," Wasko says.

Ben Payne concurs. He's with Calgary Stockyards and also feeds his own cattle. Payne says he's seen an eroded market for bigger cattle going to feed into the summer.

Opportunities

However, he's quick to point out that prices are getting low and there will be some opportunities.

"We can start feeding cattle with some margins again," Payne says. "It's no good for the guy selling them, but it’s becoming an opportunity on the buying end of things." 

Wasko agrees and says there will be some better availability, but acknowledges lower prices is not something the industry tends to get overly excited about.

Payne believes the cow-calf producer out there is safe

Source : fcc