FED CATTLE STRONG
Record high pork and hog prices, rising U.S. cash cattle markets and a lower loonie helped lift Canadian fed cattle prices last week.
The Canfax weekly average fed steer price rose $3.36 to $101.69 per hundredweight and heifers rose $3.44 to $101.21. Rail trade was about $5 per cwt. higher than the week before.
The week’s show list in Alberta was 18 percent smaller than the previous week as the majority of cattle carried over from two weeks ago were cleaned up.
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The cash-to-futures basis widened to -$7.67 from -$7.31 the previous week. In five of the last six years, the cash to futures basis has widened into the second week of August.
Fed cattle exports remain light. Market-ready supply should tighten in coming weeks, adding support to prices.
Fed cattle prices are generally supported by strong U.S. beef exports, which are up 37 percent year to date.
COW PRICES WEAKEN
Non-fed volume going to auction was light. Demand was weaker.
D1, D2 cows were $67 to $77 to average $71.06, down 75 cents.
D3s were $56 to $69 to average $63.83, down $1.46.
Railgrade was $136-$139, down about $1.
Butcher bull prices were lower.
Canadian non-fed exports to July 23 were 2,727, down five percent.
The limited supply and steady demand from packers should create favourable marketing opportunities in the weeks ahead.
FEEDERS MIXED
In a light summer run, despite the strengthening fed market, feeder prices did not firm.
U.S. beef exports are up 37 percent over last year, keeping fed cattle prices strong
Light stocker prices were down slightly and mid-weight feeders were steady. The Canfax average steer price fell 93 cents per cwt. and heifers fell 71 cents. Cost of gain and quality of feeders on offer continue to dictate prices.
Generally good forage supply means sellers can be choosy.
Reported auction volume for the week was 5,415 head, down 36 percent from the previous week.
Exports remain light.
With many auctions looking to return to a full-time schedule in preparation for the yearling run, buyer interest could increase.
The lower Canadian dollar is supportive of cattle prices but unease in the global economy will keep investors on edge.
BEEF LOWER
Canadian cutout values for the week ending July 29th fell $1.50-$3.
AAA cutouts were $168.04, down from $171.13 and AA were $166.70, down from $168.34.
Montreal wholesale prices for delivery this week were anticipated to hold steady at $192-$194 per cwt.
In the U.S., Choice cutouts were $172.64 US per cwt. down from $174.13 the week before and Select was $169.67, down from $170.40.
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.
