FED CATTLE LOWER
The May 20 U.S. cattle-on-feed report, that showed more cattle than expected in American feedlots, lowered the market last week.
The Canfax average price for Alberta was steers $99.62 per hundredweight, down $1.97, and heifers $98.64, down $2.26.
The week’s show list volumes were slightly larger, with the cash offering accounting for one-third of the list.
Most of the trade was dressed with prices toward the higher end of the $165-$169.50 per cwt. range.
The cash-to-futures basis widened to close at -$2.70 because prices were slow to respond to the weakening loonie and the improved futures market as the week progressed.
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Year to date, Canadian carcass weights are about 15 pounds lighter than the same time last year.
Eastern Canadian packers dealing with a tight fed supply could draw Saskatchewan cattle, relieving pressure from the Alberta market.
Weaker beef prices could stir short-term demand that might lift cattle prices in June, but prices should fall again as the weaker summer demand season takes hold.
LIVE COWS MOSTLY STEADY
D1, D2 cow prices edged 23 cents per cwt. higher and D3s fell $1.02.
Rail prices generally fell $2-$3 to $140-$145 per cwt. Good demand pushed butcher bulls $1 higher.
Demand forhamburger will likely improve during the grilling season.
FEEDER PRICE DOWN
There was light auction market action as farmers concentrated on seeding. Quality was mixed.
Higher feed costs and anticipated low feeding margins appear to be capping prices. Futures will need to recover to encourage feedlots to place cattle.
Light stockers that can be put on grass for delivery in early spring saw good interest, but generally prices were lower.
The average steer price fell 83 cents and heifers were 45 cents lower.
The May cattle-on feed report saw fewer heavy heifer placements, perhaps indicating more replacements will be bred. However, prices do not reflect seedstock heifer premiums.
CANADIAN BEEF LOWER
Canadian cut-out values for the week ending May 20 were pressured moderately lower.
AAA cutout was $168.70 per cwt., down 53 cents from the previous week, and AA was $165.20, down $2.51.
The Montreal wholesale market for delivery this week was down $2 to $192-$194 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.
