Lower Feeder Cattle Prices Could Result in More Backgrounding
CANADA - Cow-calf producers are examining whether it makes economic sense to add some weight to their lighter animals before selling them
12 October 2007
1 minute read
*
"with the industry paying a little bit more for that heavy end of cattle, the incentive is there that if you do have feed, to hold cattle over and feed to a heavier weight."
Sask Ag and Food Beef Economist Sandy Russell
"with the industry paying a little bit more for that heavy end of cattle, the incentive is there that if you do have feed, to hold cattle over and feed to a heavier weight."
Sask Ag and Food Beef Economist Sandy Russell
The feeder cattle market was mixed last week . . . following steep price declines in September. A rising Canadian dollar and high feed grain prices are responsible for the lower prices being paid by feedlots.
Sask Ag and Food Beef Economist Sandy Russell says there is concern about a risk for prices to go lower as we get into the bulk of the fall cattle run.
One option for producers is to feed hay and light test weight grain to smaller cattle in an effort to shift some of their marketings to a later time.
Russell says "with the industry paying a little bit more for that heavy end of cattle, the incentive is there that if you do have feed, to hold cattle over and feed to a heavier weight."
Source: Saskatoonhomepage.ca
