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 cattle lower
Weighted average steer prices slipped $4 to $163.38 per hundredweight and heifers were $163.63, down $1.10.
Alberta dressed trade was $272-$277 per cwt. delivered, with prices a little lower for deferred late May delivery.
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Chicago cattle futures fell all week in anticipation of lower cash prices.
U.S. wholesale beef was slack and more cattle were for sale than the week before.
The effects of weakness in the American market were compounded by a stronger loonie.
The Alberta cash-to-futures basis strengthened sharply to +$3.49.
Weekly western Canadian fed slaughter to April 16 fell one percent to 30,145 head.
Western Canadian slaughter this year is 417,934 down eight percent.
Weekly fed exports to April 9 rose 24 percent to 7,097 head. For the year exports are up 27 percent.
The window of opportunity for a spring price rally is dwindling despite bullish North American fundamentals.
The strong Canada-U.S. basis will continue to discourage American interest in Canadian cattle.
Cows steady
D1, D2 cows ranged $92 to $108 to average $100.83 down $1.17. D3 cows ranged $80 to $95 to average $88.83 up $1.33.
Dressed bids were mostly steady at $197-$202 delivered.
Butcher bulls averaged $128.73, down $1.90.
Weekly western Canadian non-fed slaughter to April 16 rose eight percent to 5,634 head.
Slaughter this year is up 11 percent at 109,835 head.
Exports to April 9 rose 28 percent to 5,389 head.
But for the year they are down 10 percent.
Auction volume should remain manageable and prices should be steady to modestly higher.
Feeders lower
There was pressure across the entire calf and feeder market this week.
Steers were mostly down five to nine cents, while heifers were down two to nine cents.
Heifers in previous weeks had seen prices drop further than steers.
Rising corn prices kept pressure on Chicago feeder futures.
Western Canada feeder supply is ample and demand is weaker as the futures fall and the Canadian dollar rises.
Feedlots face significant red ink.
Calf prices have fallen in seven of the last eight weeks.
Meanwhile, 850 pound steers have dropped 15 out of the 16 weeks this year.
While 550 lb. steers are $105 lower than last year, they are $8 higher than 2014.
The feeder basis strengthened $1 over the week, and is following the five-year basis trend closely.
While the futures may be due for a bounce, the feeder market will continue to struggle as the feeding sector has to get margins back in line and the strong Canadian dollar weighs on the market.
Beef down
The U.S. market is still waiting for spring grilling season demand to add support.
In the meantime, prices fell again.
Choice cutouts were US$220.72, down $3.71 while Select was $212.77, down $2.06
Canadian cutout values for the week ending April 16th were unavailable.
