OLDS — Olds Auction Mart had an extra busy day on Oct. 7 as almost 5,000 calves came up for auction.
And prices were higher than they’ve been since probably 2014, owner/operator/auctioneer Tyler Rosehill says.
During the fall calf run, big numbers of cattle usually come through toward the end of October or early November, Rosehill said during an interview.
He had a theory as to why so many showed up so early.
Rosehill said one factor is that producers weren’t in the field anymore, due to an early harvest, brought on by good weather, which saw the pastures “chewed-off and dried out.”
In addition, Rosehill said, producers were attracted by high prices for cattle this year.
“We haven’t seen these prices since I don’t think 2014, so it was a good sale that day and like I say, the market being strong has brought some calves to town,” he said.
“We’re seeing heavy steer calves – you know, 750-850-weight steer calves – bring $2,000 a head. And last year, those same calves were in that $1,700-range, so the market’s up substantially from last year."
Rosehill is glad to see that – not only for his company but for producers.
“The producers you know, their input costs are probably higher than ever, so it’s good that they’re getting paid for their calves this year,” he said.
Strong demand and low supply have resulted in this year’s high prices.
Rosehill said last year's drought as well as a few other dry seasons during the past five to eight years led producers to cull their herds.
That resulted in a smaller pool of calves to choose from at a time when the world’s population is still looking for protein like that found in cattle.
“Supply is low, due to guys selling some numbers off in past dry years and therefore, the price is high,” Rosehill said.
Rosehill said it’s anybody’s guess how long the market will remain strong.
"I guess that’s what makes a market is nobody really knows for sure,” he said.
He did predict that the bulk of the fall calves will "run out” by the end of November.
“I suspect the market will hold together and it should stay strong for this season, but you know, the unknowns is what makes that market.”
