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.
Fed market falls
The Canfax weighted steer average was $177.21 per hundredweight, down $1.72, while heifers were $175.88, down $2.32.
Dressed steers traded around $295 per cwt.
The loonie rallied, pressuring Canadian prices lower.
Lift dates were generally three to five weeks out.
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The cash to futures basis of -$11.50 matched the five year average.
American cash trade developed late. In thin trade, cash cattle fetched US$136 per cwt, down from $138 the previous week.
Weekly western Canadian slaughter to Jan. 30 surged 14 percent to 30,832 head.
Weekly fed exports to Jan. 23 rose six percent to 6,032 head.
Market-ready fed supply this week will likely be ample to the needs of local packers but American demand might help support prices.
Cows lower
D1, D2 cows ranged $96-$114 per cwt. to average $104, down $3.70, while D3 cows $80 to $98 to average $90.50.
Rail grade cows were $205-$210.
It was the first time in 10 years that January did not post the first half low.
Many feeder cows that were bought on speculation last fall have been on feed for 60 to 90 days.
Prices have hardly improved from when they were put on feed.
Given negative margins, cows traditionally marketed in January are being carried into February in hope of a price bounce.
Prices might revisit $110 in the second half of the month.
Light feeders strong
Demand for grass cattle remains firm.
The western Canadian calf index closed $1 higher at $253.71, which was the highest since mid-November. Grass buyers have mostly focused on 550-650 pound steers and heifers. A few have bought up to 700 lb., but they back off from 725 lb. and heavier.
The western Canadian feeder index was at the lowest point this year, closing just below $220.
These heavier backgrounder feeders would go to market in the traditionally sluggish summer fed market.
The 850 lb. steer Alberta cash-to-futures basis level remains strong, limiting the chance for price gains.
Canadian feeder exports to the U.S. usually increase in the first quarter, but exports are lagging this year. If this continues, it might add price and basis risk into the second half of 2016.
Bred cows were $1,700-$2,300.
U.S. beef higher
U.S. Choice was US$223.03, up $2.91, and Select was $218.48, up $3.05. A blizzard disrupted slaughter schedules at some plants.
Weekly Canadian boxed beef prices to Jan. 23 saw AAA up C$6 at $311.58 and AA up $1at $308.76.
The AAA-AA spread at $2.77 remained significantly narrower than last year.
