Canfax report

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 price falls

The weighted average fed steer price was $156.39 per hundredweight, down $4.45, and heifers were too lightly traded to establish a trend.

It was one year ago that the Alberta fed cattle market topped at $203.50 per cwt.

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On a per head basis, fed steers are down more than $600 from this time last year.

Delivered dressed bids last week were in the mid-$260s per hundredweight delivered, $5-$6 lower than the previous week.

Cattle priced for delivery in the first half of July were lower than those to be delivered at the end of this month.

Market-ready fed numbers have picked up and will increase into summer. Packers have responded by increasing slaughter levels. With the exception of the holiday shortened week ending May 28, both western Canadian packers have been putting in five-day slaughter weeks since mid-May.

Feedlots are selling aggressively to pull forward cattle and lessen the volume sold in the coming dog days of summer.

With more calves entering the slaughter mix, there has been a seasonal decline in grading. Canadian AAA/Prime as a percent of all A grades is at the lowest level this year at 59.53 percent.

With AAA and Prime on the decline, more cattle are grading AA.

Larger fed cattle supplies year-over-year are forecasted for the second half of this year and will put more meat on the domestic market.

Strong export and domestic demand will be needed to work through increased production.

In the United States, cash prices dipped mid-week but firmed at the end, closing steady to $3 higher with top end dressed sales at US$210 per hundredweight.

U.S. feedlots are finally posting profits following a year and a half of negative margins.

Steer carcasses were reported at 859 pounds, down three pounds from the previous week. It was the fourth consecutive week that U.S. weights trended below year ago levels.

Cows rise

Volume increased but prices rose as D1, D2 cows ranged $95-$111 per hundredweight to average $104.67, up $2.17, and D3s ranged $850$101 to average $92.75.

Rail grade cows ranged $195-$200.

Slaughter bulls averaged $128.05, up almost $1.

Feeder cows saw keen buying interest and prices rallied almost $4.

Weekly western Canadian non-fed slaughter to June 4 rose 13 percent to 5,912 head.

Weekly exports to May 28 were modestly lower at 4,500 head.

Slaughter cow prices should be steady thanks to strong demand expected to continue for the grilling season.

Feeders mixed

Alberta feeders steers surged $2 per hundredweight and heifers fell $1.

There was good demand for grass-type steers up to 750 pounds, and prices rose $2-$3.50. Similar heifers saw prices mostly steady to $4 lower.

Feeders heavier than 800 pounds traded unevenly based on lot size and quality.

The weekly sale volume fell 16 percent to 14,170 head. Volume normally falls until the end of July.

Exports to May 28 seasonally declined, but for a sixth straight week were significantly larger than year ago.

Interest in calves and grass cattle has likely peaked for the season and prices for light feeders will likely weaken, but the price of heavier cattle typically firms through the summer.

Auction offerings should dwindle and trade ranges are expected to widen, depending on lot size and quality.

Bred cows ranged $1,400-$2,000 per head, and cow-calf pairs were $1,700-$3,300.