The higher Canadian dollar is weighing on the cattle markets.
It is affecting particularly the calf and feeder prices.
Brian Perillat is the manager and senior analyst at Canfax, he talked about some of the other factors that are affecting prices.
"You know the U.S. is seeing a lot of growth and an expanding heard," Perillat said. "In Canada, we're not and cattle coming off grass right now over the last month have not been that, or have been relatively small I guess or fairly modest and we're seeing that support market. Feedlots have been profitable and to be honest when your buyer these feeders fear to price them out in and they are certainly looking at some red ink in these cattle, and sort of banking on this market or fed cattle market improving into the fourth quarter and into the spring."
The July, 1st Canadian inventories were recently released and showed little or no growth in the Canadian cattle herd.
But as Perrilat explains it has been this way for a while.
"We look at the Canadian beef industry or the herd size and there is not a lot of change there. Cow numbers have been flat for a good 5 for almost 7 years, you know they did show a slight uptick but less than half a percent. You basically we are seeing a fairly stable Canadian herd."
Perillat says the herd size is similar in size to what it was back in the mid-90's.