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 price slips
The Canfax steer average was $201.12 per hundredweight in lacklustre trade, down $1.42.
Heifer numbers were too few to establish a price.
Many of the cattle on offer had been on feed for only 60-100 days.
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The Alberta fed cash-to-futures basis narrowed to $16.22 but seasonally remained strong, discouraging American buyers.
Weekly western Canadian slaughter to May 16 was 29,377 head, one of the smallest non-holiday week kills this year.
Weekly exports to May 9 rebounded slightly to 3,454 head.
Feedlots are current in their marketing, and lighter cattle will remain on feed unless packers are willing to push delivery dates out into July.
Cash cattle in the U.S. Plains traded mostly US$159-$161 per cwt. last week, which was steady to down $2 from the previous week, Reuters reported.
Cows up
Fewer non-fed cattle were taken to market because producers were tied up with seeding.
D1, D2 cows ranged C$140-$157 to average $147.42 per cwt, up $1.29.
D3 cows ranged $120-$140 to average $131.75.
Rail grade cows were $282-$287 per cwt. Slaughter bulls were $167.78, up $1.82.
Dry pastures are worrying producers. A few more cows could hit the market if moisture conditions don’t improve.
U.S. pasture conditions are much improved, which means few U.S. beef cows will enter the slaughter mix.
Feeders mixed
Weaker barley prices helped lift prices for heavier feeders, while calves and light stockers traded generally lower.
Small lot sizes and varying quality made it difficult for buyers to assemble packages.
Dry pastures are pushing a few more cattle onto the market, but many producers are sitting on the side-lines waiting for rain.
However, more feeders could come onto the market, especially if one can pencil in a profit at today’s cash prices.
Steers 900 pounds and heavier in British Columbia and Alberta for August delivery saw prices in the low to mid $240s per cwt.
Anecdotal evidence suggests basis levels have strengthened slightly from earlier in May but remain weaker than the five year average.
Feeder exports over the past three weeks have ranged 5,800-7,400 head, which is down from 8,100-10,600 head in the same period last year.
The premium for breeding heifers that was evident in March and April has evaporated.
Beef peaks?
U.S. boxed beef prices peaked in the middle of last week but then slipped as Memorial Day needs were met. Choice was US$262.22, down $2.52, and Select was $249.32, down $1.99.
Weekly Canadian boxed beef prices to May 15 saw AAA at C$315.12, up $5.42, and AA was $308.83, up $4.49.
The Canadian cutout continued to trade at a premium to the United States, but the spread is expected to narrow.
Fewer feedlot placements
Fewer cattle went into U.S. feedlots in April than expected, supporting prices for next fall.
Placements were 1.548 million head, down five percent from last year. The market expected a gain of .9 percent.
The May 1 feedlot population was 10.640 million head, up one percent. Traders expected a 1.4 percent in-crease.
Marketings in April were 1.639 million, down eight percent. Analysts expected a 7.5 percent drop.
