Farms.com Home   Ag Industry News

Alberta’s beef sector optimistic about NAFTA negotiations

Alberta’s beef sector optimistic about NAFTA negotiations

The next four weeks could impact a generation, according to the Canadian Cattlemen’s Association

By Diego Flammini
News Reporter
Farms.com

Members of Alberta’s beef industry are satisfied with the overall progress of NAFTA negotiations, which are currently in their sixth round in Montreal, Que.

The most recent discussions led to the completion of a chapter on anti-corruption measures, according to the Financial Post. Negotiations on auto parts continue.

While those items may not be directly linked to agriculture, they are a step in the right direction, according to Dennis Laycraft, executive vice-president of the Canadian Cattlemen’s Association.

“At this stage I think we’re feeling that more tangible offers are being put on the table,” Laycraft told CBC on Friday. “I’m certainly feeling more optimistic than I was in November.”

Until NAFTA is finalized, however, questions remain surrounding the impact on the beef industry.

Canada, Mexico and the United States trade many industry commodities, including genetics, animals and embryos, across their borders.

Those agreements need to continue to ensure the viability of the countries’ respective beef industries, according to Kelly Smith-Fraser, a producer near Innisfail, Alta.

Trade “is important for our own herds, for the enhancement of our breeds and for breed improvement,” she told CBC. “Our breeds and producers utilize a lot of data and we need to be able to access that data freely. If there’s tariffs placed on data, as well as live animals and genetics, that would have implications for producers here.”

The longer NAFTA talks take, the importance of Canada’s involvement in the Trans-Pacific Partnership becomes more evident.

A trade deal without the U.S. means Alberta’s beef producers, for example, could have more opportunities to market their products.

“Having that agreement approved now is a big deal,” Laycraft told CBC. “These next four weeks are four of the most important weeks for our industry for a generation.”


Trending Video

U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!