This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattlemen’s Association. More market information, analysis and statistics are available by becoming a Canfax subscriber by calling 403-275-5110 or at www.canfax.ca.
Fed steers down
Fed prices moved off of historical highs with fed steers averaging $202.23 per hundredweight, down $1.28, and heifers at $200.34, down $2.58.
Most of the cash cattle intended for sale this month have been marketed, and many producers are looking at July inventory.
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Until now, packers had been reluctant to price cattle into July, but many that sold last week were scheduled for late June and early July delivery.
Both big Alberta plants were buying, and no sales went to the United States.
Impressive cash market margins over the past year and a half have encouraged some producers to sell a few more cattle that might have otherwise been bred. Also, some cattle that would traditionally be sold on a grid are instead being sold on the cash market.
Calves that have been on feed for more than 200 days continue to come to market.
Steer calves are finishing sooner than heifers.
Weekly western Canadian steer slaughter totalled a little less than 24,000 head, the most this year.
The market could see some seasonal pressure, and prices might break below the current trading range into the summer.
The market fell five percent on average over the past five years, from spring highs to summer lows.
A five percent decline from the high of $203.50 would translate to a summer low in the low-to-mid $190s.
Cows sharply lower
D1, D2 cows ranged $135-$153 per cwt. live, down $5.
D3 cows ranged $120-$138, down $2.25.
Rail cow bids fell to $270-$275 per cwt. delivered.
Weekly western Canadian non-fed slaughter to June 6 was steady at 4,679 head.
Poor pasture conditions are forcing some producers to reduce their herds. Rain would reduce marketing urgency, but increased volumes at auction are anticipated.
U.S. buyer interest should improve to help stabilize prices, but the market will likely move lower.
More feeders at auction
Alberta feeders traded $1-$2 lower, and auction volumes increased, which goes against the usual seasonal trend.
Weekly Alberta auction volume rose 12 percent to more than 20,000 head, which was 41 percent more than the same week last year.
Pasture and forage in the western Prairies deteriorated. The industry is poised to enter a drought market.
Producers are hoping for rain but also preparing drought strategies, which could include herd reductions.
Calf prices traded $2-$3 per cwt. on either side of steady.
Yearling feeder prices were variable but lower with selective buying interest on varied lot size and quality.
More top end replacement quality heifers sold. Weekly feeder exports to May 30 were down nine percent to 2,782 head.
Beef mixed
June is traditionally a profitable time for packers, but not this year. Packers are slowing slaughter to try to push beef prices higher and cattle prices lower.
American cattle slaughter last week was estimated at 542,000, down from 550,000 the previous week and down 10.6 percent from last year’s 606,000.
U.S. cash cattle prices have fallen US$7 on a live basis over the past two weeks.
The U.S. Choice cutout was $247.19, down $1.29, and Select was $240.66, up 15 cents.
Large beef imports from Australia, Brazil and Uruguay have helped ease the U.S. supply situation.
In the U.S., heifer slaughter as a percent of total fed slaughter for March and April was the lowest in the past five years, which indicates that producers are retaining breeding stock.
Weekly Canadian boxed beef prices to June 6 saw AAA at C$315.83, up $2.06, and AA at $305.16, down $2.26.
While beef prices in the U.S. are moving closer to year-ago levels, Canadian prices are almost 30 percent higher.
