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.
Loonie hurts fed cattle
Improved corporate earnings caused risk-adverse investors to move back into equities, commodities and commodity influenced currencies like the Canadian dollar.
The strong loonie pressured fed cattle prices lower by $1.90-$2.35 per hundredweight.
Disappointed feedlots sold only part of their show lists and there were reports some cattle bought last week won’t be picked up until early August, raising the possibility of cattle getting backed up and weights rising.
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Steer prices were $81.25-$84.75 per cwt. and rail $137.50-$140.85. There was no live trade for heifers but rail grade was $137-$140.85.
Averages for the week for steers were $84.15 and heifers $84.07.
The Alberta cash to Nebraska cash weakened to $8.61 under from $9.14 under.
Exports to the U.S. for the holiday week ending July 4 totalled 1,198, down from 3,157 the previous week.
Grid, contract and packer-owned cattle should be in ample supply, pressuring prices lower, said Canfax.
D1, 2 slaughter cows dropped 47 cents per cwt. to average $48.09, while D3 cows rose 20 cents.
Butcher bulls were 99 cents higher to average $59.64.
Non-fed slaughter exports for the week ending July 4 fell 40 percent from the previous week. Volumes should be steady and prices firm until August, Canfax said.
Beef price drops
U.S. Choice cutouts fell 88 cents to $136.64 US and Select dropped $1.38 to $130.91.
U.S. packers are suffering negative margins and have cut slaughter to try to drive beef prices higher.
Canadian slaughter volumes for the week ending July 11 at about 64,000 head were up 22 percent over the previous week, but margins are falling and packers will likely slow their kill, Canfax said.
The Calgary wholesale market for delivery this week fell $2 to $168. Montreal dropped $1 to $178.
Canadian AAA cutouts for the week ending July 10 were $168.51, down 72 cents from the previous week and AA cutouts were $1.08 higher at $161.35. The US Choice to AAA spread for this week is -$8.34 Cdn.
Rain lifts prices
Rain improved optimism in the feeder market
The Canfax weekly average steer price rose 74 cents per cwt. and heifers rose $2.05.
Steers 300-500 pounds rose $2-$2.50 but 500-600 lb. were almost $2.25 lower.
The 600-700 lb. price range generally fell, but those heavier than 700 lb. jumped higher reflecting better grass conditions.
New crop stocker heifers 300–500 lb. rose $2.50 and 500-600 lb. climbed 60 cents. Those heavier than 700 lb. rose $2.75-$3.50.
Auction volumes totalled 15,430 head, down two percent from the previous week.
Feeder exports to the U.S. in the July 4 holiday week totalled 1,198 head, down 62 percent from the week before and 82 percent lower than last year.
Although rain lifted feeder cattle prices, feedlot buyers can’t make current feeder prices jibe with third quarter futures, with break-evens in the low $90s. Many are waiting for larger offerings and lower prices and are currently at less than capacity.
Bred cow and heifer supplies are seasonally light and insufficient volumes were available for price quotes.
Cow-calf pairs rose $74.58 per pair with a firm average price of $1,080.
Older, larger calves in recent weeks have added value to pairs, but improved pastures could slow auction traffic and offer support to prices.
Feedlot numbers down
On July 1, there were 770,936 head in feedlots in Alberta and Saskatchewan, down two percent from last year at the same time, said Canfax.
There were 96,660 head placed in June, down 10 percent from last year, partly due to the small calf crops of 2008 and 2009.
Marketings in June totalled 170,367, up 12 percent due to increased slaughter, the largest since June 2006.
Other disappearance was 23,871 head, down two percent from last year.
Pork prices rise
U.S. hog slaughter companies sharply limited production last week and were successful in driving pork prices higher.
Packer margins improved.
The outlook for tighter numbers of market ready hogs in the coming months lifted Chicago futures but the large premium over the cash market caused some uncertainty.
Russia on July 17 resumed fully unrestricted imports of pork from Canada and the United States.
Iowa-southern Minnesota cash hogs were $43 US per cwt. July 17, steady with July 10.
The U.S. pork carcass cutout value soared to $65.63, up from $58.18 July 10.
U.S. federal slaughter to July 25 was estimated at 1.954 million, down from 1.957 million the previous week. Compared to the same week last year, slaughter was down 8.6 percent.
Bison unchanged
The Canadian Bison Association said markets were steady last week.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were steady at $2.35-$2.65 per lb. hot hanging weight. Heifers were $2.25-$2.45 per lb.
The cull cow and bull average was $1.40 per lb. Weight, quality, age and delivery location affect final price.
Sheep steady
Ontario Stockyards reported 1,408 sheep and lambs and 111 goats traded July 13. All classes of sheep, lambs and goats were steady.
