A beef market analyst is cautiously optimistic for Saskatchewan producers in 2018. Brian Perillat with Canfax says cattle prices exceeded expectations in 2017, providing a pretty good year for the cattle industry.
He says production of poultry, hogs and cattle could reach record levels in 2018, but demand remains quite strong. He says this summer may see some price pressure.
“Just because of supply, we got so many cattle coming forward,” he says. “There’s a few factors, weather concerns, some dryness. We get some drought scares, that could put a lot more cattle on the market in the short term and that could put pressure on prices.”
Perillat says the rising Canadian dollar also pressures cattle prices.
He says cattle prices could drop 5% – 15% this fall, even though futures point to higher levels.