A strong fall for feeder cattle prices continues well into November as cull cows soften more than is expected seasonally. Look for feeder prices to stay strong into the new year and for cull cow prices to recover.The fall of 2017 has been a pleasantsurprise for most cow-calf producers. With a weighted average value per head of $1,127 for the first two fall feeder sales, cow-calf producers are making good money for the fourth year in a row. Strong 2017 export demand in the U.S. meant that processorskept feedlots current and slaughter weights down from 2016. Coupled with a strong U.S. and Canadian economy, the Canadian dollar has also kept local finished prices strong. Without the strength of the demand side prices, this year should have been below2016. Given our place in the current cattle cycle, the U.S. beef herd is expected to produce more beef for at least the next two years. If demand does not compensate for this tonnage of beef, prices can and likely will decrease. While Canadian supply and demand are important, our market is driven by the U.S. beef industry, which is roughly nine times our size (31 million beef cows versus 3.7 million).
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