Recent weeks have seen a significant drop in U.S. cattle prices and that market decline has spilled over into Canada.
It started with U.S. President Trump saying American consumers are paying too much for beef.
An increase in the tariff rate quota for incoming Argentinian beef from 20,000 tonnes to 80,000 tonnes was subsequently announced.
Tariffs on Brazilian beef imports have also been removed.
Meanwhile, the screwworm problem in Mexico is being addressed and the U.S. border is expected to soon reopen to Mexican live cattle imports.
While some point to beef packers as the culprit for high beef prices, industry analysts say packers have been losing money as they chase a dwindling supply of cattle.
An announcement by Tyson that it is closing its Lexington, Nebraska beef slaughter plant and also decreasing production at its Amarillo, Texas plant was another shock to the market. The Lexington plant slaughters about 20,000 head per week.
Analysts say the Tyson announcement will cut total American slaughter capacity by 8 or 9 per cent. Cattle prices are still high, but all the negative news has taken a toll.
