FED CATTLE SET RECORDS
Cash fed cattle prices soared last week because of tight cattle supply, declining carcass weights, rising corn prices and strong U.S. beef exports.
Also, speculative money poured into markets, including cattle futures, as investors’ risk appetite increased. Futures and cash prices hit record highs.
The Canfax weighted average steer price was $115.56 per hundredweight, up $5.52, and heifers were $114.16, up $5.59.
The Alberta sales volume was 14,167 head, up 16 percent from the previous week and steady with last year. Feedlots capitalized on the high prices, pulling green cattle forward to market.
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The cash to futures basis narrowed slightly to –$1.80 compared to -$2.05 the previous week.
The Nebraska to Alberta cash basis was -$3.70, compared to -$2.34 the previous week.
Weekly fed exports to March 19 were 7,821 head, down 26 percent from the previous week and down 58 percent from last year.
Packers will struggle to maintain production over the next couple of weeks because the fed cattle pulled forward this spring had disappointing performance. The average steer carcass March 26 was 857 pounds, down five lb. from the same time last year. Heifer carcasses are down 18 lb.
Canfax believes the cattle futures market is over bought and could fall this week. However, nearby live cattle futures should have support at $118–$119, which will support the cash cattle trade.
COW PRICES RISE
D1, D2 cows averaged $78.73 per cwt., up $3.85. D3 cows rose $4.44 to average $69.50.
Rail cow prices rose to $148-$153 per cwt. Butcher bull prices rose $6 to average $87.81.
Optimism in the cow-calf sector is causing purebred breeding bull values to rise. Some producers are now looking for breeding stock at commercial auction sales and bidding just above salvage prices, further increasing butcher bull prices.
Weekly non-fed slaughter exports to March 19 rose 10 percent. Year to date, exports are down 32 percent.
FEEDER PRICES SLIP
The market is volatile and feedlots face a lot of risk.
Chicago August live cattle futures fell $6 US per cwt. in mid March but have jumped back $10 since then.
Corn has also been down and up and the Canadian dollar has rallied to about $1.03.
Market uncertainty and muddy pen conditions kept the feeder cattle market in check last week.
The average Alberta steer price was down 61 cents Cdn per cwt. and heifers were 91 cents lower.
Steer and heifer calves under 600 lb. showed the largest price retreat, which is likely related to quality issues of light calves at this time of year. Steers 700-800 lb. showed the most strength, rising about $1, while steers 800 lb. and heavier were steady.
Prices for heifers heavier than 600 lb. ranged from 50 cents lower to about $1 higher compared to the previous week.
Auction volume was 35,347 head, down 12 percent.
Volume so far this year is 390,743 head, down 26 percent.
Weekly feeder exports to March 19 were 2,305 head, up 32 percent from the previous week but down almost 60 percent from a year ago. Year to date exports are down 37 percent.
BEEF PRICES RISE
U.S. Choice cut-out values closed March 31 at $188.41 US per cwt., up $1.59, and Select fell 36 cents to $185.22.
Weekly Canadian slaughter to March 26 was 51,839 head. Slaughter so far this year is down 11 percent from last year.
Canadian cut-out values to March 25 were moderately higher. AAA cutouts were $179.09 Cdn per cwt., up $2.16, and AA rose 56 cents to $176.47.
The AAA-AA spread is widening, indicating improving demand, which is encouraging with grilling season right around the corner.
The Montreal wholesale market for delivery this week was estimated to rise $2 to $197-$199.
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.
