Cattle prices may be at record highs, but they are nearing the peak of a five-year cycle, livestock market analyst Jerry Klassen told farmers attending this year’s Ag in Motion farm show near Langham, Saskatchewan.
Klassen said the feeder market this winter will benefit from continued strong demand, shorter supplies and cheaper feed prices as the U.S. prepares to harvest a record corn crop.
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But he said the market is in a state of transition.
“Since 2018, we’ve been contracting the cattle herd,” he said. “Now we’re at six-year lows.”
However, Klassen said while there hasn’t been a significant shift into heifer retention, there has been a significant decline in the cow slaughter, currently at about two million head, down from typical levels of around 4.5 million head.
“The cow slaughter is going to be at three-year lows … people are holding back on cows and wanting one more calf,” he said. He expects to see a small increase in the 2026 calf crop which sets the stage for increased supply. How consumer spending is affected by economic conditions will be another market influence.
Klassen pointed to two fundamentals in play that make the cattle market unique.
Jerry Klassen spoke to farmers attending this year’s Ag in Motion farm show near Langham, Saskatchewan as part of The Western Producer Markets Desk team.
You can find all of Jerry Klassen’s livestock markets columns here.
