FED CATTLE LOWER
The Canfax average steer price was $103.69 per hundredweight, down $1.02, while heifers were $103.26, down 58 cents.
The show list was five percent larger than the previous week with cash cattle making up 35 percent because of the carry over from the previous week.
Packers were choosy buyers, favouring longer fed animals over green cattle, which resulted in a wide rail grade spread of about $4.
Most of the trade was dressed with prices in the middle of the price range of $172.50-$176.75 per cwt. for steers in Alberta.
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Given weaker prices, some producers opted to move only a portion of their offering, resulting in more than 20 percent of the cash cattle being passed or pulled off the sales list.
Sales volumes was 17,063 head, up three percent from the previous week.
The cash to futures basis widened to -$1.78 from -$1.21 the previous week.
A larger volume of market-ready calves will be available in the coming weeks. Packers may gain leverage and use the larger numbers to further pressure prices lower to try to heal prolonged negative margins.
Canadian fed prices have likely stalled until beef demand improves and cut-out values stabilize.
COW PRICES FALL
D1, D2 cow prices fell $2.50 to average $74.08 per cwt., and D3 cows fell $3.50 to average $65.08.
Rail price bids fell $4 to $140-$145 per cwt.
Butcher bull prices were in a range of $76-$97 to average $86.59 per cwt.
There is strong demand for seed stock females, and producers may opt to keep open cows for re-breeding rather than send them for slaughter.
Tight global trim and grind supply should support prices.
FEEDER PRICES MIXED
Feeder supply remains tight with solid support for mid-weights to put on grass.
Feeder steer average prices were 62 cents per cwt. higher and heifers were $1.25 lower.
Steers 400-600 pounds rose $1 per cwt. and 600-800 lb. rose about $1.50.
Steers heavier than 900 lb. fell $1. They have slid more than $7 in the last 30 days.
Heifers 300-600 lb. were $1-$1.75 lower while 600-700 lb. fell almost $3.
Heifers 700-900 lb. were moderately lower and those heavier than 900 lb. held mostly steady.
Auction volume was 26,877 head, down 14 percent from the previous week and down 15 percent from last year.
Statistic Canada’s Jan. 1 Alberta beef cattle inventory reported there were 242,000 fewer head compared to January 2010, which should indicate smaller volumes will continue into the second half of the year as the smaller calf crop comes to market.
Exports are down 57 percent in the year to date.
Field work is now taking priority over hauling cattle to town.
Quality will continue to drive wide price ranges. The $20 per cwt. middle weight heifer-steer spread should tighten with supply.
BEEF FALLS
U.S. beef cutouts fell to try to prompt better demand.
Choice cutouts fell $4.76 US to $174.58 per cwt. Select fell $3.67 to $170.56.
The lower prices did improve movement.
Weekly Canadian slaughter to May 7 was 62,161, up 10 percent from the previous week.
Canadian cut-out values for the week ending May 6 fell sharply.
AAA cutouts in the week ending May 6 closed at $174.71 Cdn per cwt., down $4.33. AA fell $4.28.
Canadian cutouts are trading at a premium to U.S. cutouts when converted to a consistent currency.
The Montreal wholesale market for delivery this week was $4 lower to $196-$198 per cwt.
PRAIRIE CATTLE ON FEED
The May 1 Alberta-Saskatchewan cattle on feed report showed slightly more than one million head in feedlots, down three percent from last year.
Placements in April were 143,768 head, down seven percent. Almost 119,000 fewer cattle have been placed on feed so far in 2011 compared to a year ago.
Marketings were 122,050, down 18 percent from last year and down 20 percent from the five year average.
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.
