A cattle market analyst believes we will soon see an increase in livestock production.
Brett Stuart with Global AgriTrends out of Colorado says the lower dollar has meant it has been harder for the U-S to export, but it’s been a different story here.
“Canada it’s been easier to export to the U.S. that’s been a big boon to prices that’s very supportive to the livestock sector,” says Stuart, who adds “ultimately we have larger production coming those profits that were made the last three years are going to drive expansion. In the U.S. we are expanding; there probably will be a bit of expansion in Canada, but not just beef pork and poultry expansion are underway as well.”
Stuart says there are a few things everyone should be keeping a sharp eye on.
“What’s really important to watch here isn’t necessarily domestic production it’s exports we’re going to need better exports to keep up with the rising supply of meat in North America.”
He says producers should also watch the exchange rate.
But along with that not just exchange rates, I think we have to keep an eye on pork production and poultry production and our export markets that is really what is going to define these prices over the next year to 18 months.
Stuart says we are now just starting to see stabilization of markets after a period of global commodity deflation, triggered by lower oil prices.