FED PRICES HIGHER
A weaker Canadian dollar and rising U.S. cattle and beef prices lifted Canadian fed prices last week, despite the volatility in stock markets.
The Canfax fed steer weekly average was $105.41 per hundredweight, up $3.72 and heifers were $105, up $3.79.
Alberta rail steers were $175.50-$177.
Beef demand rose as retailers ordered for Labour Day cookouts. Record pork prices also supported beef, as did strong beef exports.
In Canada, show list numbers have declinedandcaptiveofferingsaretighter, which supported the cash market.
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But the week’s strong market increased the volume by 16 percent over the previous week.
A healthy mix of live and dressed trade was reported, with a few steers trading at $107 per cwt.
Prices were supported by U.S. interest.
The cash-to-futures basis widened to -$7.99.
Weekly exports to July 30 totalled
5,915 head, up eight percent from the previous week.
Investor worries about weak economic performance and government deficits present a wildcard to cattle markets, increasing risk.
COWS STEADY
D1, D2 slaughter cows were steady at $64-$77 to average $71.13, while D3 cows eased 50 cents to average $63.31 per cwt.
Rail bids were generally flat at $136- $140 per cwt.
Butcher bulls traded mostly steady to average $81.18 per cwt.
Weekly non-fed exports fell seven percent to 2,544 head.
Non-fed supplies are expected to increase and prices in September will likely be lower.
FEEDER QUALITY IMPROVES
The larger offering of quality yearlings saw prices rally almost $4 per cwt. on steers heavier than 800 pounds.
Heifers heavier then 700 lb. saw good demand and higher prices, while middle weight feeders were slightly lower.
Although load size lots of quality stocker calves saw good buyer interest, smaller lots of varied quality calves continued to struggle.
Stocker steers and heifers lighter than 500 lb. traded $2.75-$4 lower.
A large special feeder sale bolstered sleepy auction volumes.
Weekly feeder exports to July 30 were down 20 percent. Volumes should increase seasonally.
Strong demand is anticipated for yearlings. A good supply of forage should improve calf demand.
BEEF STRONG
Montreal wholesale prices for delivery this week rose $1 higher to $193-$195.
Weekly Canadian AAA cutouts to Aug. 5 were $1.28 per cwt. lower, while AA cutouts slipped $3.50.
U.S. Choice cutouts on Aug. 12 were $179.81 US per cwt., up from $172.64 the week before and Select cutouts were $176.53, up from $169.67.
CATTLE ON FEED
The Alberta and Saskatchewan cattle on feed Aug. 1 totalled 671,690, up
five percent from year ago, but down six percent from the five-year average.
It was the second consecutive month that on-feed numbers were above year ago figures due to the larger decline in marketings than placements.
Smaller marketings were expected, given the sharp declines in placements in the second half of 2010 and first half of 2011.
Marketings in July were 173,914, down 12 percent from last year, while placements were 59,200, down five percent.
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.
