FED CATTLE EDGE HIGHER
Canfax’s weighted weekly average steer price was $98.31 per hundredweight, up 18 cents, and heifers were $97.83, up 39 cents.
On the rail, Alberta steers were mostly steady at $165-$166.85 per cwt. The large offering of captive cattle continues to offset limited cash trade volumes.
U.S. packer interest was reported but did not generate many sales.
This cash to futures basis widened to -$3.56 from -$1.49 the previous week but remains tighter than the five-year average of -$6.07.
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Weekly fed exports to May 28 totalled 5,862, up 64 percent from the previous week.
Steer and heifer carcass weights for the week ending June 4 were generally 20 pounds lighter than the previous week, indicating fed supplies are current.
Packer interest from Eastern Canada remains supportive.
MORE COWS HIT MARKET
Better weather resulted in a flush of slaughter cows at auction.
D1, D2 cow prices averaged $73.36, down 43 cents. D3 cows averaged $66.80, up $1.62 per cwt.
Rail cow bids fell $2 to $138-$143 per cwt. Butcher bulls fell $1.27 but are still in good demand.
Prices are expected to improve when the current surge of slaughter cows works through the beef pipeline.
FEEDERS SEE LIGHT DEMAND
Feeder demand has been weakened by wet conditions in southern Alberta and dry conditions in the north.
Higher feed grain prices and oversold cattle futures are challenging feeder risk management.
The volume of light stockers was lower and price reporting was sparse. Good demand continues for middle weight feeders while interest in heavier steers was soft.
Steers generally traded 50 cents lower and heifers 50 cents higher.
Auction volume of 16,625 head was mostly steady with the previous week. The extra supply of slaughter cows topped up the week’s auction offering.
Weekly feeder exports to May 28 slowed to a trickle.
Auction volumes are expected to fall in July as dry cow marketings subside.
BEEF PRICE FALLS
US beef cut-out values traded $5 US lower. All Choice and Select cuts saw weak demand and traded lower.
The Montreal wholesale market for delivery this week fell $2 Cdn to $189-$191.
Weekly AAA cutouts to June 3 slipped $1.78 per cwt. and were expected to follow the Choice trend lower.
CANADIAN ON FEED REPORT
The number of cattle on feed in Alberta and Saskatchewan June 1 was 926,316, down one percent from last year at the same time but up seve n percent from two years ago because reduced feeder exports have kept cattle in Canadian feedlots.
Placements in May were 102,982 head, down 10 percent from last year.
Sales volume in May was 145,462 head, down 19 percent from last year, because the yearlings had already been marketed and the late-placed fall calves were not yet ready for market. They will appear this summer.
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.
