“Grain prices are rising. Cattle futures are staying the same or maybe dropping a bit. So between the dollar and the grain prices going up, and the futures dropping, everything is against the cattle at the moment,” he said.

The loonie has pushed over the 80 U.S.-cent mark and continued to rise during the week to the 82-cent mark, reaching highs unseen since 2017.

Feed grain prices have made sharp gains over the last 12 months, according to Prairie Ag Hotwire. Feed barley in Manitoba has jumped $1.76 per bushel delivered during that time, sitting at about $5.75/bu. The rise in feed wheat has been more pronounced, gaining $2.41 to reach $7.35-$8/bu. delivered.

“It really costs a lot more to feed cattle. If the cattle don’t go up with grain, then it comes out of the bottom line of the cattle,” Unrau said.

Cattle futures on the Chicago Mercantile Exchange (CME) have taken a hit over the last month. Over the course of the last month, prices have dropped US$10 from around US$125 per hundredweight.

Unrau said prices at Grunthal slipped back this week and noted producers were now hauling in more less desirable cattle, which added to declines in prices.

The lighter feed steers brought in $195-$214.50/cwt this week, compared to $195-$265 on April 27. As well, lighter feeder heifers garnered $165-$175/cwt this week, with only those in the 500- to 600-lb. category available for auction. Last week, the lighter heifers fetched $182-$208/cwt.

Along with the above factors, another has developed this year: dry conditions in much of the province. Unrau said southeastern Manitoba is not as dry as other areas, noting “we will be OK for a while.”

“There are some dry areas and they will see some cattle moving,” he said.

In other parts of the province, soil moisture levels were adequate to poor. Cool temperatures and dry conditions have slowed growth on pastures and in forage crops.

The post Factors pile up for a downturn in cattle markets appeared first on Manitoba Co-operator.

The post CME Group expands private trades in grain markets, raising worries appeared first on Manitoba Co-operator.

“Just about every day it’s been positive (on the Chicago Mercantile Exchange) and that’s what is holding the market probably together on the feeder cattle,” said Robin Hill with Heartland Livestock Services at Virden.

About 17,200 head were sold at the province’s eight major auction marts during the week, up by over 3,500 head from the previous week, when 13,694 were sold.

Feeder cattle prices rose anywhere from $1 to $20. Steers (800-900 lbs.) sold from $165 to as high as $223 per hundredweight. For heifers (800-900 lbs.) prices were slightly lower, with some going for as low as $135 to as high as $190/cwt.

On the slaughter market, prices varied, with some auction marts seeing increases while others saw decreases. Prices for mature bulls ranged across the province from $75 to $125.50/cwt.

The CME live cattle futures market reached its highest level in nearly three months on Oct. 26. Packers bid US$111/cwt for slaughter-ready cattle in the U.S. Plains, versus US$116 for asking prices.

In Canada, Hill said, this spells good news for cattle producers.

“If we ever see a big dive in (Chicago futures) on the feeders or the live fat cattle we could see a change in the feeder cattle fairly quickly,” he said.

In Virden this week Hill saw aggressive trade with a long front row of order buyers. Cattle mostly were sold to western and eastern feedlots.

“There’s not much interest in the south because our cattle in Canada are worth as much or more than their cattle are with the exchange rate,” Hill said.

As well, prices are up from this time last year. According to Hill, producers at Virden are getting 45 to 50 cents a pound more.

Volume is up as well. With bills coming due at the end of October and start of November, Hill said this week usually marks one of the busiest runs of the year. He estimated the auction mart is within 120 head of what was sold last year at this time.

Hill expects the next week to be busy as well, with the run starting to slow slightly after that.

Heading forward, he said, “volume is going to be the biggest issue for the next four weeks… the availability of trucks to haul the cattle from the auction barns to their next destination, that’s always a factor this time of year.”

The sale week also corresponded with Manitoba’s official Beef Week, which recognizes the contribution about 6,500 beef producers make to the provincial economy.

The post Rising Chicago futures support Manitoba values appeared first on Manitoba Co-operator.

Cattle futures at the Chicago Mercantile Exchange (CME) saw some turbulence over the past week, though prices for cattle at auctions in Manitoba were able to resist that pressure.

“The cash market didn’t seem to reflect it,” said Allan Munroe of Killarney Auction Mart.

Rain improved ranchers’ optimism about the cattle feeding situation this summer, which was supportive for the market, he said.

“Guys were concerned about the pastures, they were dry. They were very concerned about what was going to happen,” he said.

“But we’ve had a lot of rain, pastures got that drink they needed, so there’s a little bit of optimism and local guys interested.”

Most areas across Manitoba received beneficial rains on the week, supporting crop conditions.

Prices also drew out some sales that would have otherwise been held over until September, Munroe said.

Those stronger cash prices also lent themselves to increased volumes, as did earlier concern about pasture conditions.

“Our last couple of sales were probably double what we would expect in the end of May and mid-June,” he said.

The Killarney market had 370 head at its sale on June 12, the last sale until the fall run in September.

Though cash prices in Manitoba were divergent from movement in the futures, many ranchers are still keeping an eye on fluctuation in that market.

CME cattle futures often move into a weather-based market into the summer, taking on a level of volatility, Munroe said.

“Everyone guesses how the corn and stuff in the States is going to be,” he said. “It can change quickly based on what happens, or the forecast in Iowa.”

In terms of the prices Canadians are paying for beef, a new report from Dalhousie University says those prices are expected to edge up.

This year, meat prices are expected to increase between seven and nine per cent, the university’s semi-annual Food Price Report said.

Low inventories of cattle and hogs are expected to be partially responsible for the increase.

Through the summer, ranchers will be watching feed grain prices, trade movement and the Canadian dollar.

Currently, feed grain prices in Western Canada are slightly higher, as spring-threshed grain did not weigh on inventories as much as previously thought.

Trade groups are also watching the anticipated renegotiation of the North American Free Trade Agreement (NAFTA).

The Canadian dollar recovered from its earlier lows in the week ending June 16, which has the potential to curb demand from the U.S.

The post Beneficial rains a boost for local cattle buyer optimism appeared first on Manitoba Co-operator.

The post CME live cattle narrowly mixed, cash lends support appeared first on Manitoba Co-operator.

The post LIVESTOCK-U.S. live cattle futures end higher on gains in cash appeared first on Manitoba Co-operator.

The post LIVESTOCK-U.S. live cattle futures end higher on cash gains appeared first on Manitoba Co-operator.

The post CME live cattle futures rise in light trade, hogs firm appeared first on Manitoba Co-operator.

The post CME live cattle futures firm on steady cash expectations appeared first on Manitoba Co-operator.

The post LIVESTOCK-U.S. live cattle futures ease ahead of USDA report appeared first on Manitoba Co-operator.