The manager and senior analyst with Canfax says cattle producers are seeing seasonal softer fed cattle markets along with a rapid drop in prices.

Brian Perillat notes the middle of summer is always a challenging market from the fed cattle perspective. He says there is plenty of cattle around in western Canada and we didn't export many cattle last year.A

He adds the recent spike in the Canadian dollar is also having an adverse affect.

"The Canadian dollar's risen over seven cents from it's low, as of right now, and that's an eight/nine per cent increase in the dollar and that can almost translate into about an eight or nine per cent decrease in expected Canadian fed cattle prices."

Perillat says feed costs are also on the rise.