FED MARKET LITTLE CHANGED
A tight fed offering and healthy cutout values provided solid footing for fed cattle prices, but the weekly average dipped slightly.
Fed steers averaged $106.61 per hundredweight in Alberta, down 60 cents and heifers were $106.53, down 37 cents.
Feedlots have sold cattle a little early to take advantage of strong August prices, helping show list volumes remain manageable.
Considering cattle on offer were a little green, asking prices had a firm tone. The sales volume was 22,893 head, up four percent from the previous week. The cash-to-futures basis narrowed to -$5.40, well below the historical August basis of -$11.
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Weekly fed exports totalled 6,740 to Aug. 13, up 33 percent from the previous week.
More markets are open to North American cattle and strong exports are sustaining the beef complex.
The relatively tight Alberta-Nebraska cash-to-cash basis illustrates supportive demand from local packers.
Beef demand usually starts to fall in September and that will weaken cutout values.
The southern plains drought that is forcing larger than expected numbers of U.S. cattle into feedlots will likely mean third and fourth quarter prices will be weaker than expected a few months ago.
COWS STEADY
The U.S. drought is driving large volumes of American cows to slaughter, limiting Canadian non-fed price
potential. But tough economic times support hamburger demand and D1, D2 slaughter cow prices held mostly steady to average $71 per cwt.
Fleshy cows at auction saw some discounting while leaner D3 cows rose 75 cents. D3s averaged $64.59.
Rail bids were generally steady at $136-$140. Butcher bulls traded $1.60 higher to average $82.91.
Non-fed exports to the U.S. rose almost 30 percent to 3,002 head.
Non-fed supplies are seasonally increasing and cows generally are carrying lots of condition.
FEEDER MARKET RISES
Feeder prices trended higher, which may indicate buyers still believe supplies are tight.
Steer prices were generally $2.50 higher and heifers rose $1.25.
Stocker calves under 500 pounds rose about $10 on tight supply while 600 to 800 lb. feeders were mixed.
Steers heavier than 800 lb. eased $1 while heavier heifers advanced $1.
Fleshy yearlings heavier than 1,000 lb. saw strong buyer demand and great prices.
Weekly auction volume was up 154 percent. The majority of cattle offered were yearlings and cows.
Weekly feeder exports to Aug. 13 were 61 percent lower than the previous week at 903 head.
Strong demand for bunk replacements should firm yearling prices and quality new crop calves are expected to trend higher.
Backgrounder lots with large quantities of forage may also boost demand.
BEEF MIXED
U.S. beef cutout trade was mixed with Choice trading $1 higher and Select over $2 lower.
Choice Aug. 26 was $186.30 US per cwt. and Select was $179.21.
The Montreal wholesale market for delivery this week was steady at $193-$195 Cdn. Canadian AAA cutouts for the week ending Aug. 19 were $174.23, up $2.07 and AA cutouts were $174.24, up $5.26.
Canadian loins seasonally have softened somewhat and fresh trimmings firmed.
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.
