Beef Market Update: Slower trade, shifting leverage, and strong export demand

A mid-week U.S. holiday this week didn't affect beef kill but closed futures and packers wanting to dial markets back from last week's new cash high combined for slower trade for beef markets.
In this week’s Beef Market Update, Anne Wasko with the Gateway Livestock Exchange, says cattle feeders want to keep the momentum rolling but there's a lot of push and pull in the marketplace.
In Western Canada, Wasko says it looks like packers have been able to get a few more cattle around them, and with more inventory, bargaining power may be shifting to packers after producers held strong leverage throughout the second quarter.
Seasonality is also working against the producer, says Wasko. Demand has been really good, but summer markets typically mean bigger supplies, and with some of the bigger grilling weekends - Victoria Day, Memorial Day and Father's Day - in the rearview mirror, the market is now pushing into the dog days of summer where there's more demand for hot dogs and hamburgers.
The Ontario market was quiet this week, and the lack of activity is obviously linked to the strike at Cargill’s Ontario plant.
Wasko also has an update on Canadian beef exports and imports for 2024. Exports continue to be solid and are surprising on the upside. Based on April data, total exports are up 7 per cent year-to-date in volume. "If you just counted money, we're up 8 per cent," she notes. Exports to Japan jumped 24 per cent in April and are up 12 per cent year-over-year. Exports to the U.S. are up 10 percent year-to-date and Mexico rounds out the top three with a 4 per cent increase.
When it comes to imports, record domestic prices tend to be very attractive to imports, says Wasko. In May, beef imports into Canada were up 12 percent for the month. Year-to-date, exports are up 14 per cent.
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