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FCC notes rising feed costs cut into livestock profitability

FCC notes rising feed costs cut into livestock profitability

Inflation is affecting our Canadian way of life, as well as that of our livestock, as feed costs are up over 11.8 percent from last year.

By Farm Credit Canada

Although it’s difficult to predict doom and gloom when cattle and hog prices remain high in 2022, but Farm Credit Canada (FCC) noted that as the global economy continues its decline and export markets act against weaker conditions, pressure could be applied to prices.

Martha Roberts, a research specialist and Economic Editor with the FCC has delved into the state of today’s cattle and pig markets and examined global factors that will impact future prices.

Read how the “Spectre of demand destruction looms over livestock markets”. Click HERE.


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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!