With decreasing processing capacity, cattle inventories in Western Canada are starting to back up.
Brian Perillat is a Senior Analyst with Canfax.
"When we were killing in Western Canada, 50,000 head a week and now we're maybe killing 15,000 head...there's just not enough spots," he said. "The outlet to the U.S. is just not there either."
Perillat says prices have taken a big hit over the past couple of weeks.
"It's hardly a market in a way, there's some producers out there that can't get bids. There's a couple of smaller plants that are mainly buying a few cattle as they go, but obviously they're getting bombarded with potential cattle. We've seen prices drop dramatically. In some cases, some of the larger players haven't really got bids to take all of their cattle."
He notes on the bright side, cull cows are still flowing to the United States.
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