Fed Cattle Lower
Trade resumed last week, recovering from a week when sellers rejected bids because of sharply lower prices.
The Canfax weighted average steer price was $98.33 per hundredweight while heifers were $97.77.
That was $5.50 lower than the trade two weeks before.
Most of the trade occurred on a dressed basis with prices toward the top end of the price range.
Steers were $162.75-$164.85 per cwt. and heifers were $162-$164.85 in Alberta.
The cash to futures basis closed at -$7.31, remaining comfortably below the historical July basis of -$9.24.
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Weekly fed exports to the U.S. totalled 5,335 head to July 16, up 43 percent from the previous week.
Alberta packer interest has been relatively light, but lift times appear to be tightening.
The tight supply of fed cattle in Eastern Canada is pulling cattle from the West, reducing pressure on the market here.
Lower cutouts and stalled beef demand might continue to pressure the market.
Cows Edge Higher
D1, D2 cows rose to $65-$77 per cwt. and D3 cows climbed to $55-$70.
Railgrade cows were steady at $136-$140. Bull prices were steady.
Non-fed supplies appear to be tightening and more moderate temperatures might spur the demand for hamburgers.
Feeders Slip
The high dollar and a softer tone to the fed market had feeders pulling bids back.
Light and heavy steer prices fell while 500-700 pound steers were mostly flat.
Light volumes and variable quality caused large price ranges, but larger uniform groups of cattle were under pressure.
Auction volume was light at 8,521 head, down four percent from the week before. Cows made up a large part of the volume.
Feeder weekly exports totalled 1,542 feeders to July 16. That was up about 10 percent from the previous week but down 57 percent from the same week last year.
The slow U.S. economy and the fight in Washington over the deficit are affecting the cattle markets and the loonie. Despite all the market noise, the cattle market has held up reasonably well.
Beef Weaker
Weekly Canadian cutouts to July 22 were generally $1.50-$2 lower than the previous week with AAA at $171.13 and AA at $168.34.
Montreal wholesale prices for delivery this week were $2 lower at $192-$194.
U.S. Choice cutout July 29 was $174.13 US per cwt., down $1.77 from the week before and Select was $170.40, up 29 cents.
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.
