The sharp gains in Chicago futures and cash cattle that started the previous week in the United States washed into western Canadian markets last week.
The Canfax fed steer weighted average price was $102.20 per hundredweight, up $4.05 from the previous week, and heifers were $101.54, up $4.37.
Rail prices were up about $7.
Chicago cattle futures were in a tug of war. The strong U.S. cash market, partly supported by packers buying for July 4 barbecues, pushed futures higher early in the week, but then worries about the U.S. economy and employment caused the market to pull back later.
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Alberta show list volumes were steady with the previous week. Market ready calves continue to be pulled forward.
The week’s cash offering accounted for one-sixth of the total list.
With the weaker Canadian dollar and wider basis, U.S. interest was again observed.
As live cattle futures strengthened, the cash to futures basis widened $1.59 to end the week at -$6.52.
Weekly fed cattle exports to June 11 totaled 5,990, up 16 percent from the previous week.
Stronger beef cut-out values and lighter carcasses compared to last year are supporting fed prices, but the weak U.S. economy and investor unease could pressure prices down.
COW PRICES RISE
D1, D2 cow prices were steady and D3 cows rose 54 cents per cwt. Rail bids were steady at $138-$143 per cwt.
Midwest U.S. boner cows fell $1-$2. Butcher bull prices fell 30 cents per cwt. to average $85.88.
Weekly non-fed exports to June 11 were steady at slightly more than 3,500 head.
Slaughter cow supplies are expected to tighten heading into July, and prices next week could trend higher.
FEEDER CATTLE MIXED
A light volume of feeder cattle at auction made it difficult to establish meaningful price trends.
Demand has eased because of muddy feedlot conditions.
Fund investors revived sagging feeder cattle futures, but strong local feed grain prices are still a big problem.
Light stocker steers generally traded steady while middle weight steers trended slightly lower.
Heavier steers targeting the fourth quarter fed market saw good demand and higher prices.
Stocker heifers continued mostly steady and feeder heifers heavier than 600 pounds generally traded 50 cents-$1 higher. Auction volume was 52 percent lower than the same week last year.
Non-fed slaughter cows again made up a larger percentage of auction volumes.
Weekly feeder exports to June 11 were near a record low at 659 head, discounting holiday weeks.
Feeder exports are down 63 percent so far this year.
Small lots of varying quality feeders are making it difficult to assemble feedlot pens. Once the supply of non-fed cattle lessens, some auction markets may be forced to take an early summer hiatus until grass cattle come back on the market.
BEEF PRICES SURGE
The Choice cutout rose to $178.19 US per cwt., up $5.25 from the previous week, and Select was $173.51, up $5.24.
The Montreal wholesale market for delivery this week traded $2 higher at $191-$193 Cdn.
Weekly Canadian AAA cutouts to June 17 rose 70 cents to $166.06 per cwt. and were anticipated to see a marked improvement the following week.
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.
