HEAT PRESSURES FED PRICES DOWN
The rising loonie and falling U.S. cattle market pressured the Canadian market lower to a point where almost no cash fed trade was reported in Alberta or Saskatchewan.
The punishing heat in the United States weakened beef demand, pressuring cutouts lower and forcing feeders to market cattle into the falling market.
Many Canadian feedlot producers withdrew to wait out the slump, passing up dressed bids that were $10-$11 per hundredweight lower than the previous week.
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Formula priced cattle made up a large portion of the week’s show list and allowed packers breathing room.
Market ready supplies in North America are ample and heat stressed fed cattle in the U.S. were being aggressively marketed.
Western Canadian pen conditions are not great, but cattle performance is improving and live weights in coming weeks could become an issue.
COWS STEADY
Anniversary and special consignment sales have flushed out a large offering of non-fed cattle over the past few weeks.
Prices were mixed with cows steady but bulls lower.
D1, D2 cows were $65-$78 to average $71.15. D3 cows were $56-$69 to average $64.38.
Rail grade cows were $136-$140. Few non fed cattle moved south.
Non-fed volumes are anticipated to tighten over the next couple of weeks, which should support prices.
FEEDERS MIXED
Lower feeder cattle futures and a sluggish fed market injected an uneasy tone into the week’s market.
Light stockers were pushed slightly lower while strong buyer demand supported short keep feeders.
The Canfax average steer price rose 28 cents per cwt. and heifers fell $1.37.
With volume light, buyers were willing to pay for large, uniform packages of feeders.
Auction volumes totalled 8,900, down eight percent from the previous week.
Weekly feeder exports to the U.S. to June 9 totalled 1,404 head, up 50 percent from the previous week.
The strong Canadian dollar and high cost of gain is limiting feeders’ interest.
Animals that will finish in the fourth quarter have gained support from speculation of tight supplies and encouraging live cattle contracts.
Early yearlings coming off grass are attracting strong values, but for the time being prices should trend relatively flat until the local fed market thinks the market has stabilized.
BEEF VOLUME DOWN
Excessive heat engulfed many U.S. states, which slowed the beef pipeline.
Choice cutouts July 22 were $175.70 US per cwt., down from $180.88 the previous week, and Select was $170.11, down from $174.50.
Canadian AAA cutouts to July 15 rose to $174.68 Cdn from $170.49 the previous week and AA climbed to $171.33 from $168.39.
The Montreal wholesale for delivery this week was expected to fall $1 to $194-$196 per cwt.
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.
