The Canfax weighted average steer price for the week ending July 30 was $88.89 per hundredweight, down 11 cents, and heifers were $88.56, up 66 cents.
Most of the Alberta trade was again on the rail with mostly steady prices. The rail grade range was $148- $148.85 per hundredweight.
Canadian packers did most of the buying. They are now picking up cattle seven to 10 days after the sale date.
Sales volume for the week was 27,731, up about 10 percent. About 69 percent of the show list was captive supply.
The cash to futures basis tightened by $1.50 to -$6.30, and was the narrowest since early June.
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Fed exports were unavailable.
Chicago live cattle futures weakened, the loonie strengthened and boxed beef prices fell. The U.S. market was weaker last week as beef prices declined. U.S. cattle prices were higher than expected in July, mostly because of exports.
Canadian prices could soften in August, but feedlots are current in their marketing.
COWS, BULLS STRONGER
Slaughter cow and bull prices rose because of reduced supply and strong demand.
D1, D2 cows were $54-$64 to average $59.56, up 30 cents from the previous week. D3 cows were $53.50, down $1.72.
Rail grade cows were $110-$120.
Butcher bulls were $63.20-$80 to average $73.07, up 26 cents.
FEEDERS DOWN
Weekly auction volume fell 27 percent.
There is direct grass cattle sales activity as feedlots and U.S. buyers secure yearling cattle.
On average, feeder steers were down $1.17 per cwt. and heifers fell 19 cents.
Prices were mostly down across all weight categories, with 500-800 pound calves down the most.
Yearling volumes and trade will pick up this month as feedlots secure inventory, even though grass conditions are good in most areas.
Export data was not available.
GRASS CATTLE OUTLOOK
Within weeks, many grass cattle owners will be thinking of taking their cattle to market.
Excellent grazing conditions saw a large number of calves head to grass in 2010.
Demand for these cattle should be strong as they hit the market.
The supply of feeder cattle in the United States is down, so that should encourage more exports. In Canada, feedlots are current, have been profitable and will be ready to buy.
An 850 pound feeder steer placed in August and marketed in December could produce a marketing price near $87 per cwt., given current futures, an unchanged Canadian dollar and a four-year average basis.
U.S. BEEF DOWN
U.S. Choice cutouts fell $1.89 to close at $153.39 US per cwt. and Select fell $1. 01 to close at $145.74.
Weekly Canadian slaughter to July 24 was more than 70,000 head, 12 percent larger than a year ago.
Steer and heifer carcass weights each increased four lb. over the previous week.
Canadian AAA cutouts to July 24 were down $2 at $145 Cdn. AA cutouts fell $3.50 at $144.
The Montreal wholesale market for delivery this week was up $1 at $179- $181.
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.
