July 26, 2005

Canadian beef unlikely to hurt US prices
 

Though it's been a week since Canadian beef entered the US again, it might take a few more weeks before Canadian beef starts coming in substantially, said University of Nebraska agricultural economist Darrell Mark.

However, even as the planned Jul 27 US court hearing-meant to decide on a permanent injunction against Canadian cattle-has been cancelled on Jul 21, Mark predicts little price impact on US beef.

First, only cattle less than 30 months are allowed into the US, thus already reducing the number of Canadian cattle for export into the US. Second, recent Canadian on-feed number increase would also reduce the feeder cattle available for trade. Third, the narrowing of US and Canadian live cattle prices in recent months will help to reduce the volume of cattle exported.

Feeder-cattle prices will fall more than fed-cattle prices, Mark said, adding that impending losses by cattle feeders and prospect of higher corn volume will reduce overall beef prices in both the US and Canada.