Canfax Report - for Jun. 17, 2010 | The Western Producer

Fed cattle fallSharply weaker beef prices in the United States and indications the American economy is not recovering as quickly as expected pressured Chicago cattle futures lower.The weak futures and a strong Canadian dollar last week pressured Canadian fed cattle values.The Canfax weighted average steer price in the week ending June 11 was $87.85 per hundredweight, down $2.20 from the week before.Heifers fell $1.75 to average $87.88.There was some American packer interest in Canadian cattle. Volume was 31,422 head, down six percent.The cash to futures basis narrowed to -$5.06 from -$5.88.Weekly fed exports to May 29 were 9,722 head, down 30 percent from the week before but up 72 percent from last year.Offerings this week are expected to be steady to slightly larger and should have a small cash to captive ratio.Fed cows lowerSlaughter cow trade fell to $51.80-$65.25, averaging $58.72, down 85 cents. D3 cows averaged $51.63, down $1.45.Rail grade was $105-$110, down from $113-$116 the week before.Butcher bulls traded firm to stronger at $64-$85 to average $74.98, up $2.40.Weekly cow slaughter to June 5 in Alberta was 7,302 head, up from 6,175 head the previous week and 6,920 head a year ago.Weekly non-fed cattle exports to May 29 were 3,837 head, up from 3,813 the previous week and 3,519 last year.Feeders mixedWarm sunny weather is needed to dry pens and get grass growing.Overall, feeder steers were steady with last week, while heifers were $1.26 higher.Feeder steers 300-500 pounds were down 15-80 cents, while heifers 300-400 lb. rose $2.25 and heifers 400-500 lb. fell $1.30.Steers 600-800 lb. were steady to 40 cents lower, while heifers 600-800 lb. were $2.40-$2.50 higher.Steers 800-900 lb. and heavier rose $1.25-$1.65 and heifers rose 50 cents-$1.90.Auction market volume was slightly lower than the week before and 16 percent lower than a year ago.Weekly feeder exports to May 29 were 4,928 head, down from 7,124 head the previous week. Year-to-date feeder exports are down 37 percent.Auction volumes are tightening seasonally and prices should be steady for light weights, but could rise for heavy weights given tight supply.Cow-calf pair offerings picked up. Prices were $800-$1,510 to average $1,111.60.Bred cow volume rose and prices slipped to $600-$950 to average $787.50, down $156. Too few bred heifers traded to quote.There were 933,746 cattle in Alberta and Saskatchewan feedlots June 1, up eight percent from the previous year. Placements in May totalled 114,293, down seven percent from last year, which isn’t surprising given the rain and wet pens.Marketings in May were 178,969, up 17 percent.Beef price fallsHigh prices in May led to less beef featured in the United States. As well, demand and prices are falling in the wake of the Memorial Day weekend.U.S. Choice cutouts fell $6.76 to close at $155.16 US, and Select fell $7.97 to close at $146.18Weekly Canadian slaughter to June 5 rose 16 percent to 71,700 head.Canadian AAA cutouts to June 5 fell $3.10 Cdn from the previous week.AA cutouts were virtually steady.Retailers and wholesalers are well bought, and buyers are in no hurry to book inventory as the cutout price trends lower.Pre-booked middle cut retail features are starting to hit the shelves, and warmer weather is needed to fire up the grilling season.The Montreal wholesale market delivery this week was steady at $178-$180.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.