Market Summary

Slaughter cows and bulls fully steady, good cows in the mid 220s. This market is holding up very well on tight supplies and good demand.  The yearling and calf market continues to advance almost daily to another record level. I thought I’d just comment briefly on why that is.  From the end of July to today the value of a fat steer has advanced about 0.25 per pound CDN.  That equates to about $400 per head increase in value. On July 24 I sold 950 lb steers for $4.33/lb ($4100 per head). Today those steers are worth close to $4.80 per pound  ($4575 per head). So, an increase of $475 per head. The bottom line is that the yearlings are worth more than they were because the fats are worth more than they were, just about dollar for dollar. The calves have also advanced in price every week. Everyone that has priced cattle for future delivery since January has been wrong.  Everyone has underestimated the potential of this market.  I wish I had a bunch of steers back too!  Anyway, the market always makes sense. The cattle are worth more simply because they’re worth more. It’s a great time to be in this business. Have a great week. Ian

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