Exchange rates – particularly against the US dollar – have a direct impact upon Canadian cattle prices. Traditionally, when the Canadian dollar is low against the US dollar (lower than the average of 80 cents US) cattle prices go up. The Canadian dollar has strengthened throughout 2016, although it’s still under the average at around 77 cents US.
“If the dollar rises 10 cents to 87 cents US that would wipe out most of the profits potentially for cow/calf producers this year alone,” said Mr Perillat in his presentation to attendees at CBIC. “I don’t think that’s going to happen, but it’s a very sensitive number that producers should follow.”