Feeder cattle prices have recovered to levels seen this time last year, due largely to strong demand for cattle coming off the grass.
“Last week, we were steady to five cents per pound higher when compared to last year,” said Brian Perillat, senior analyst at Canfax in Calgary.
“Calf and feeder markets are doing well, all things considered.”
Perillat said mid-weight steers around the 800-lb. range were around $200 per hundredweight, which is “pretty strong.”
However, on the feedlot side, fed cattle prices were still slightly depressed due to large volumes of cattle. Many feedlots across North America had to shut down due to the COVID-19 pandemic.
“There will be a lot of cattle to work through in September to October,” Perillat said.
“We’ll have to see what fed cattle prices are and how much losses feedlots will be incurring.”
Cattle market participants will also be watching the Canadian dollar, as a strong loonie will influence beef exports to the U.S.
On Aug. 27, the dollar closed at 76.17 U.S. cents, up from 75.79 U.S. cents a week earlier.