FED CATTLE FALL
Reports of slowing U.S. job creation and economic activity last week indicated the possibility that beef demand might also cool.
Chicago cattle futures fell on the news, as did cash prices.
Canfax weighted average Alberta steer prices fell $1.49 per hundredweight and heifers fell $1.20.
Most of the week’s trade was on a dressed basis at around $166.75 per hundredweight.
The cash-to-futures basis narrowed to -$1.49 from -$2.53 the previous week as the futures market fell more than the cash market.
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Weekly fed exports to the United States to May 21 were less than 3,600 head, a record low. Some Saskatchewan and Manitoba fed cattle were shipped to Ontario.
Feedlots remain current and much of the week’s potential carryover will remain on feed rather than added to this week’s list.
Packers are buying cash cattle hand to mouth because lots of formula cattle are available.
COW PRICES STEADY
Slower slaughter in Canada and strong U.S. cow prices supported slaughter cow markets.
D1, D2 cows sold for $70-$80 per cwt. to average $73.79, down 67 cents from the previous week.
Rail grade cows were $140-$145.
FEEDERS LOWER
The average steer price fell $2.34 per cwt. and heifers dropped $1.97, pressured by lower fed cattle prices and weaker demand for cattle to put on grass.
Rain in southern Alberta has restricted placements, and drier conditions in the north have softened grass interest.
The quality of light calves on offer was highly variable and likely contributed to the week’s price slide.
Only 1,797 feeders were exported to the U.S. for the week ending May21, down 14 percent from the previous week.
Short-keep feeder demand is hampered by the high cost of gain and the sluggish fed market.
BEEF WEAKENS
Consumer resistance to high prices is slowing beef demand.
U.S. choice value June 3 was $177.48 US per cwt. and Select was $171.29.
Canadian cut-out values for the week ending May 27 slipped with AAA at $167.94, down 76 cents from the previous week, and AA $163.87, down $1.33.
The AAA-AA spread widened to $4.07.
Montreal wholesale for delivery this week was expected to fall $1 to $191-$193 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.
Auction volume so far this year is
