WINNIPEG (CNS Canada) — Cattle prices on the Prairies are starting to rise following a rebound of futures contracts on the Chicago Mercantile Exchange, says an Alberta analyst.
“(In) the last two, three weeks, (prices have become) pretty good finally. We really had a meltdown in the futures two, three weeks ago (due to) trade worries and fed cattle prices,” said Brian Perillat, manager and senior analyst at Canfax.
At Manitoba’s major auction marts, prices were higher for the week ended April 27. Feeder steers, 700 to 800 pounds, sold for as high as $201 per hundredweight compared to the previous week when they sold for as high as $179.25 per cwt.
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The weaker Canadian dollar has helped support cattle prices. The dollar ended the week at US77.78 cents, down 0.79 cents from the previous week.
Auction marts are also starting to see more cattle being moved and Perillat expected that to build through summer.
“We’re kind of in between for another month or so, in between yearlings and just starting to see the calf volumes pick up, but we’ll see more volumes come forward straight up thorough till August, even till September possibly,” he said.
More than 5,900 cattle were run through Manitoba’s major auction mart for the week ended April 27. That was less than the previous week where more than 6,700 head were sold.
But as the volume increases, prices will start to drop. The market usually comes under pressure and prices weaken as the auction marts head into the summer season.
Demand for exports is strong. Manitoba is seeing interest from Ontario and American buyers, but demand from the West is waning. A large fall run has filled Lethbridge feedlots.
