As a number of cattle auctions prepare for summer shutdown, prices and the thermometer remain high.
More than 4,000 cattle went through the rings during the week ended June 1, compared to 2,009 the previous week, and prices continued to move upward. Feeder steers weighing up to 700 lb. were sold for more than $350 per hundredweight at most sites. Two of those sites, Gladstone and Killarney Auction Marts, auctioned for $420/cwt.
“We’re getting close to all-time highs on most of these cattle that were trading right now. Very, very good demand all across the board from Ontario to Western Canada into the U.S. Everybody wants to own some (cattle) and (the price) keeps getting higher and higher,” said Brennin Jack, manager of Heartland Livestock Services in Brandon and Virden.
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Manitoba cattle prices – Oct. 28
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“Where it’s going to peak, I really don’t know.”
Just like the week ended May 25, every site had 500-600 lb. feeder heifers sell for at least $300/cwt. The maximum selling price for any feeder heifer rose $18 from last week, to $351/cwt.
Among slaughter cattle, D1 and D2 cows ranged from $125 to $168/cwt. for the week ended June 1, compared to $125-$162/cwt. the week before. Mature bulls sold for $105 to $190.50/cwt., a $5.50 increase on the higher end.
Slaughter cattle “seem to be creeping up ever so slightly. I think we’re really going to see it over the next 75 days,” Jack said. “The cows and bull market is really going to be the shining star throughout the summer.”
Outlooks for the month of June predict hot and dry weather on the Prairies, including Manitoba. The southern half of the province ended May with temperatures exceeding 30 C.
While things are good now, Jack said dry conditions could force cattle producers to sell.
“It would be the best thing for the industry if we can get another year of good grass and a substantial hay crop,” Jack said. “Timely rains are definitely needed. If June is hot and dry … there could be issues if we don’t get any good timely rains.”
On the Chicago Mercantile Exchange, the most-traded August live cattle contract rose US$4.70/cwt. on June 1 to close at $172.375/cwt., nearing the all-time high set in April. The August feeder cattle contract gained $28.20/cwt. on June 1 and closed at $239.175, its highest close since October 2014.
Jack said there is strong demand for cattle locally, in Western Canada and in the U.S. He expects the cattle market to remain strong into summer, even with fewer cattle auctions.
“The lack of numbers is going to make it more challenging for folks to put loads together,” he said, adding that Heartland sites will only take three weeks off during the summer.
“We’re going to try to pull some cattle together and create a strong market for our consignors.”
