. Agri-news. Agriculture. 000000000000oc May 20,1996 CANAD1ANA Cattle - indicators, outlook and market strategy Issues in the cattle market abound. From controversy over Mad Cow Disease, competition with pork and poultry and burdensome meat supplies, there is lots to discuss. The upcoming herd liquidation is probably the most important issue to discuss. The timing of the liquidation is what will affect the inevitable downward slide in the catde cycle. For most of 1996, the value of slaughter steers and heifers has been identical or heifers priced slightly higher. Even with the demand for light
. Agri-news. Agriculture. 000000000000oc May 20,1996 CANAD1ANA Cattle - indicators, outlook and market strategy Issues in the cattle market abound. From controversy over Mad Cow Disease, competition with pork and poultry and burdensome meat supplies, there is lots to discuss. The upcoming herd liquidation is probably the most important issue to discuss. The timing of the liquidation is what will affect the inevitable downward slide in the catde cycle. For most of 1996, the value of slaughter steers and heifers has been identical or heifers priced slightly higher. Even with the demand for lighter weight carcasses, this indicates a competition for females between the breeding herd and the slaughter plant. "While liquidation hasn't quite started, it is expected to pick up in the last half of 1996," says Doug Walkey, Alberta Agriculture marketing specialist in Lacombe. "Slaughter beef supplies are up over last year and will increase normally on seasonal trends. Finished catde will hit a seasonal low in mid to late summer, around ; If producers can find acceptable specifications along with a favourable basis of eight to nine dollars Cdn per cwl, forward contracting may be a consideration. The use of futures and options markets is another option. All indications are that prices will move steadily downward into summer. High prices for feedgrains seem to be inevitable. The resulting high input costs, along with lower return, due to the softening slaughter market, are pushing feeder cattle prices the wrong way for many producers. Prices for feeder calves in the spring will be steady and will likely follow the slaughter cattle seasonal trend. Demand for grass calves may also be relatively attractive. "Prices this fall will be pressured lower by feedgrain prices and the memory of last winter's feedlot losses," adds Walkey. "What this market needs more than anything is a bumper crop of feedgrains, right across North ; If yo
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