March 17, 2005

Price of the cattle remained record high in Canada

Fed cattle prices were recording record highs for the quarter through February, and with the preliminary injunction against cattle imports from Canada on March 2 and poor feeding conditions resulting in unexpectedly tighter supplies, prices moved up even more sharply.

Prices this quarter are expected to average in the upper-$80s per cwt, well above last year's first-quarter record $82.16 per cwt. Better feeding conditions and increased fed cattle marketings together with increased Canadian cattle in the slaughter mix are expected to hold prices near the lower-$80s for the remainder of the year, with the lowest prices expected in the third quarter. Prices are expected to average near $84 per cwt for the year, less than a dollar below the explosive prices of 2003 ($84.69) and 2004 ($84.75).