CANADA TRAILS U.S. RISE
The falling Canadian dollar and a sharp rise in Chicago cattle futures lent strong support to fed cattle prices.
American packers were caught short and had to bid higher. There was strong beef movement and good beef exports.
The news was slow to circulate in Canada and had little impact on sales June 15, but by June 16 prices were $1-$2 per hundredweight higher than the previous day. However, most weekly trade had wrapped up by then.
Canfax weighted average prices were generally steady to 75 cents per hundredweight lower than the previous week.
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A larger volume of cattle traded live. Dressed pricing was generally steady.
All cattle on offer traded and feedlots are current in their marketing.
Canfax said American packers looking for supply might turn to Canada.
Weekly fed exports to June 4 were 12 percent lower than the previous week but are anticipated to rise later this month.
Fed sales in Saskatchewan and Manitoba were too light to establish a market trend.
COWS MIXED
A larger volume of non-fed cattle was on sale.
D1, D2 cows edged slightly higher while D3 cows were pressured generally $2.50 per cwt. lower.
Railgrade cows were $138-$143.
Midwest U.S. boner cows traded fully steady, sustaining local rail values.
Butcher bulls edged higher.
The larger volumes may pressure prices this week, but prices should strengthen as supplies dwindle into July.
QUALITY AFFECTS AVERAGE
Falling corn futures and the prospect of improved feeding margins supported feeder cattle futures, but the Canadian cash market was down slightly.
The Canfax average feeder steer price fell 28 cents per cwt. and heifers fell nine cents.
A considerable portion of the auction volumes consisted of non-fed slaughter cattle.
Feeder cattle quality on offer has been mixed as producers liquidate smaller offerings. Demand for grass cattle has been met.
Cost of gain and poor weight performance due to muddy pen conditions continues to drive prices.
Auction volume totalled 11,267 head, down 32 percent from the previous week.
U.S. BEEF RISES
U.S. Choice closed the week at $172.94 US per cwt., up $1.39 from the previous week, and Select was $168.27, up $2.90.
U.S. beef movement was up 14 percent from the previous week.
Weekly Canadian cutouts to June 10 traded mixed. Warmer weather would improve beef demand.
Montreal wholesale for delivery this week was steady at $189-$191 Cdn.
U.S. CATTLE ON FEED
The number of cattle put on feed in May fell 11 percent from last year to 1.81 million, indicating much tighter supply and higher beef prices are on the way.
The number of cattle on feed June 1 was 10.928 million, up four percent from last year.
It was mainly the result of large placements in April as drought-hit southern producers were forced to cull herds.
However, placements are expected to drop again in coming months, shrinking the on-feed number.
Market volumes in May were slightly more than two million.
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.
