Farm Credit Canada is forecasting much higher cattle prices this year. The lender predicts hundred-weight prices for 550-pound steers will average $270 (versus $225 last year) and $225 for 850-lb. steers (versus $185 in 2022).
“The robust prices will be a big reason margins in the cow-calf sector are forecast to be strong in 2023 as they continue to climb above the good margins of 2022,” the mid-February report states.
Feed costs are coming down “but they still easily exceed the five-year average,” it said.
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The report isn’t as bullish on hog prices but says farrow-to-finish operations should enjoy better margins on lower feed costs. It forecast an average price of $2.30 per kilogram for market hogs, slightly below last year but significantly above the five-year average of $1.90.
