Canadian fed cattle prices rose last week but were disappointing given the strong rally in U.S. prices.
The weighted average steer price for the week ending Aug. 20 was $90.03 per hundredweight, up 89 cents and heifers were $89.78, up 89 cents.
Most of the trade was on the rail at $149.50-$149.85.
Weekly sales of 18,236 head were down 30 percent as Canadian producers held out for better prices.
The cash-to-futures basis widened to -$13.10 from -$9.28.
Positive packer margins and a desire to procure stock before Labour Day should support prices this week, but in coming weeks, slower demand and larger market ready supply could push prices lower.
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COWS WEAKER
D1, D2 cows were $55-$66 to average $60.17 per cwt., down 66 cents. Rail grade cows were $113 to $117.
D3 cows traded at $48-$58 to average $53.47, down $2.75.
Butcher bulls ranged $61-$80 to average $72.04, down 72 cents.
FEEDERS CLIMB
The average steer price rose $1.04 per cwt. and heifers rose 99 cents.
Stocker steers 300 to 400 pounds rose 50 cents to $1.06, while 500 to 600 lb. fell 50 cents.
Steers 600 to700 lb. rose 64 cents but low volumes may have distorted pricing.
Steers 700 to 800 lb. rose $2.75 and 800 to 900 lb. climbed 66 cents.
Steers heavier than 900 lb. climbed $2.
With the exception of the 400 to 500 lb. calves, feeder heifers from 300 to 700 lb. rose $1to $2.
Heifers 700 to 900 lb. were steady and those heavier than 900 lb. rose $2.36.
Auction volumes of 30,857 head were up one percent from the week before but 25 percent lower than last year. Last year, grass cattle went to market early because of poor pastures.
The strength in the fed cattle cash and futures markets is likely to spill over to the feeder markets.
In light to moderate trade, cow-calf pairs were firm at $900 to $1,230. Poor pastures in northern Alberta could drive more pairs to market.
U.S. BEEF RALLIES
A stunning rally in U.S. beef was driven by tight market ready supply and strong demand, both domestic and export.
Year-to-date U.S. beef exports were up 31 percent from 2009.
Some cattle this summer have been pulled forward and others might be pushed back to capture premiums in the deferred futures.
Choice closed at $159.42 on Aug. 19, up $5.14, and Select was $152.12, up $5.10.
Canadian slaughter was up 10 percent for the week ending Aug. 14 to 62,706 head.
Weekly cut-outs to Aug. 13 rose $2 with AAA at $146.57 per cwt. and the AA cut-out at $147.87.
That was down $7-$10 from last year but the gap from a year ago is narrowing.
The Montreal wholesale price delivery this week rose $1 to $180-$182.50.
U.S. CATTLE ON FEED
U.S. Department of Agriculture Aug. 20 reported 9,873 million cattle in feedlots on Aug. 1, or 102.5 percent compared to a year ago, within the range of analysts’ expectations.
Last year’s Aug. 1 supply was the smallest since 2003.
July placements were 1.754 million, or 94.2 percent of year ago. Analysts, on average, expected 92.7 percent.
The report was expected to keep U.S. cash prices steady.
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.
