This week’s midweek U.S. holiday did not impact beef slaughter, but the close of futures combined with processors’ desire to bring the market down from last week’s high cash prices slowed trading in the beef market.
In this week’s beef market update, Ann Wasco of Gateway Livestock Exchange said cattle producers are hoping to maintain momentum but there is intense pressure and pushback in the market.
Wasko said producers held more leverage in Western Canada through the second quarter as meat processors seemed to have a few more cattle around, but the increased inventory may be shifting negotiating power to meat processors.
Seasonality also works against producers, Wasko said: Demand has been very strong, but the summer market typically means there’s more supply, and after big barbecue weekends of Victoria Day, Memorial Day and Father’s Day, the market is now heading into the heat of summer, when demand for hot dogs and burgers is high.
The Ontario market has been quiet this week, but the lack of activity is clearly linked to the strike. Cargill’s Ontario plant.
Wasco also provided an update on Canadian beef exports and imports for 2024. Exports remain strong and are growing faster than expected. April data showed total exports are up 7% so far this year. “If you just look at the value, it’s up 8%,” Wasco noted. Exports to Japan were up 24% in April and are up 12% year-over-year. Exports to the United States are up 10% so far this year, with Mexico rounding out the top three with a 4% increase.
When it comes to imports, Wasko said record domestic prices tend to make imports very attractive. In May, beef imports into Canada increased 12 percent month-on-month. Exports are up 14 percent so far this year.
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