canfax report
Fed cattle steady
Feedlots had little market power because packers had large captive supplies.
Strong beef cut-out prices two weeks ago dissipated late last week as buyers balked at the high prices and falling pork prices provided stiff competition. The strong cutout had been caused by the slow deliveries in the United States when a series of blizzards prevented travel and slowed cattle weight gain.
U.S. beef cutouts fell sharply by the end of last week. That pressured cattle futures lower.
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Western Canadian weighted average cash prices for the week were generally steady.
No cash steer trade was reported, but a considerable volume was formula priced.
Fed heifers averaged $113.34 per hundredweight, down two cents.
Most of the dressed trade was at $190-$192 per cwt. delivered.
U.S. plants were relatively well supplied, and interest in the cash market was almost non-existent despite weak basis levels.
The cash to futures basis typically rises in March compared to January and February, based on the five-year (2008-12) average. However, basis levels have been wide this month, even weaker than last fall when the packing plant in Brooks, Alta., was closed.
The Alberta fed cash-to-futures basis closed at -$17.58, using the heifer weighted average price.
Carryover from the past few weeks has caused a bit of a backup in feedlot inventory.
Sales volume last week totalled 11,995, down three percent from the previous week.
Weekly fed exports to March 2 totalled 8,816, up 10 percent from the previous week.
Cows rise
Non-fed demand and prices rose now that grilling season is just around the corner.
D1, D2 cows ranged $70-$82 to average $75.92 per cwt. live. D3 ranged $62-$75 to average $67.90.
Rail grade ranged $143-$148.
Butcher bulls rose $2.69 to average $88.89 per cwt.
Weekly western Canadian non-fed slaughter to March 9 fell three percent to 7,923 head.
Weekly exports to March 2 were steady at 8,043 head.
Beef cutouts down
U.S. Choice was $195.76 US in light demand March 15, down $1.52 from last week, and Select fell $1 to $193.93.
The Montreal wholesale market for delivery this week was steady at $216-$217 Cdn.
Canadian cutouts for the week ending March 8 rallied $2.25 from the previous week.
Feedlot activity slows
Losses in the feeding industry and increased feeder cattle exports were reflected in the Canfax Alberta-Saskatchewan March 1 on-feed report.
Feedlots held 890,583 head, down seven percent from last year at the same time.
Placements in February were 132,430, down 24 percent from last year.
Marketings in February were 128,333, down 11 percent.
Other disappearance was 7,134, down 50 percent.
