It seems to me that the biggest concern of the US rancher is that on March 8, 2005 some 900,000 head of cattle will roll across the 49th parallel. This concern is founded in 1/2 truths and mis conception's.
1. There isnt enough trucks to move that many south in a big rush.
2. When the US packers were buying cattle to ship to US plants live last was pre May 20, 2002. The exchange rate at that time was $0.62, it is now $0.80 and rising. This makes shipping live cattle more expensive.
3. Packing capacity in Canada has increased by 22% and growing.
4. Feedlots are current.
5. The Alberta set aside program, which was to delay marketing of the 2004 calf crop was under subcribed. This means that those cattle have all ready been marketed and are in the feedlots, not hiding on the ranchs waiting for the border to open.
6. There is an expanding export market for Canadian beef besides the US, which need to be filled. This will require that Cdn based packers out bid any US buyers to keep the live fats here for processing.
Therefore, come along on March 8, 2005 the only price change in the market will be caused by doom sayers creating uncertianny in the market place. It will settle back, once the sky doesnt fall, and by March 15, 2005 the price will increase. These are my predictions. I would like to hear any other intelligent senerio's and predictions.
1. There isnt enough trucks to move that many south in a big rush.
2. When the US packers were buying cattle to ship to US plants live last was pre May 20, 2002. The exchange rate at that time was $0.62, it is now $0.80 and rising. This makes shipping live cattle more expensive.
3. Packing capacity in Canada has increased by 22% and growing.
4. Feedlots are current.
5. The Alberta set aside program, which was to delay marketing of the 2004 calf crop was under subcribed. This means that those cattle have all ready been marketed and are in the feedlots, not hiding on the ranchs waiting for the border to open.
6. There is an expanding export market for Canadian beef besides the US, which need to be filled. This will require that Cdn based packers out bid any US buyers to keep the live fats here for processing.
Therefore, come along on March 8, 2005 the only price change in the market will be caused by doom sayers creating uncertianny in the market place. It will settle back, once the sky doesnt fall, and by March 15, 2005 the price will increase. These are my predictions. I would like to hear any other intelligent senerio's and predictions.