Little Optimism Over Canadian Cattle Prices

WINNIPEG - Apr 15/05 - SNS -- There is limited upside potential to Canadian cattle markets, according to analysts with Louis Dreyfus Canada Ltd., and prices would be expected to drift lower into summer as more fat cattle are brought to market.

"Fed steers in Alberta were trading between Cdn$80/cwt and Cdn$85 in mid April," Louis Dreyfus said in a recent market review.

"Larger placements during the winter months will likely result in larger on feed numbers but an increase in demand should temper price depreciation. The feeder market is expected to stay firm and percolate higher into summer. Favorable margins in the feedlot sector earlier in winter and spring will keep the demand for feeder cattle quite strong into the summer months."

The company said Canadian cattle on feed numbers are expected to stay significantly above year ago levels throughout the second and third quarters of 2005. Industry sources suggest that feedlots have been running near 75% to 80% capacity on average and market ready supplies will build into summer.

Subscribers can read the full text of the article by Clicking here