Beef Market Update: Total trade volume and value up for 2022, beating previous year

(Kara Oosterhuis/RealAgriculture)

Believe it or not, winter is going to quickly come to an end, and cattle markets are picking up on this.

As we pass mid-February, the seasonality in the cutout price is starting to pick up, says Anne Wasko of the Gateway Livestock Exchange, as we make it through the lull of January and February.

Check out the full Beef Market Update with host Shaun Haney as they discuss updates on the market, feed costs and carcass weights, December trade data for Canada, beef export numbers, and more! (Full summary below).

SUMMARY:

  • In the U.S. right now, a little bit on the light test side
  • Last week we had a nice jump — got that 5 Area price up to $160 (in the south)
  • Asking levels in the north are up to that $260 delivered
  • Cutout price this morning was $279.50, which is $10 higher than last week
  • It looks like the cutout price is turning that corner as we start to make moves into spring
  • Last week in Alberta we had a nice jump to $194 on the live average and $325 delivered dressed in Alberta
  • Icing on the cake is Ontario prices are two-to-four higher at $332 delivered dressed
  • Still at record carcass weights as of two weeks ago. From a data perspective — running at some pretty heavy record carcass weights
  • Packers are still running at good kill levels
  • There has been hedging opportunities over the past year — so not all feed waters are underwater, but spot-to-spot they are
  • Hoping for better margins in 2023!
  • Weather forecasts are looking better for this year. Hopefully that means a decrease in some feed costs
  • If you look at the feeder market today, heading into the summer and the second half of the year — depending on the weight class that someone is buying, these markets are on fire
  • We’ve gotten some December trade data since the last Beef Market Update
  • For all of calendar year 2022, and total volume was 1 per cent higher. It might not seem like a big number, but it beats last year’s record
  • Based on what is being forecasted for supplies going forward, 2022 could be a watermark year in terms of the volume of beef exports for Canada for quite some time
  • Add the live cattle value to that, and we’re at $5.9 billion worth of exports when you add beef and cattle together. That’s 8 per cent higher than last year. These are great numbers from a demand perspective
  • Our main exporting country in Canada has been Japan, South Korea, Vietnam, Mexico

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