Fed cattle steady
Fed cattle prices have been stuck in a $4 trading range for the past 12 weeks.
The supply side of the market has had a greater influence on the price than the futures aspect.
Fed supplies remain unseasonably tight, which has been reflected in the strong cash-to-U.S. cash and cash-to-futures basis.
Producers continue to negotiate lift times because front-end supplies are current. The Canfax average steer price was $120.17 per hundredweight, up 31 cents, and heifers were $117.93, down $1.13.
Steers remain $10 higher than the same week last year and slightly more than $25 higher than the five-year average.
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Most of the trade was on a dressed basis at $201-$202 per cwt. delivered.
Packers have been looking for cattle for near-term delivery, and there has been rumbling of packers accepting and calling upon August contract cattle early.
Weekly sales rose 55 percent to 16,351. The Alberta fed cash-to-futures basis strengthened to close the week at $4.74.
Weekly fed exports to July 20 fell nine percent to 3,234 head.
Retailers should be looking to cover beef needs for the Labour Day holiday, which would support beef and cattle prices.
Supply is expected to grow seasonally, but the weaker Canadian dollar should help keep prices steady.
Cows rise
Hamburger demand firmed slaughter cow prices with D1,2 cows rising 65 cents per cwt. and D3s rising 26 cents.
Rail cow prices rose $1 to around $151-$156 per cwt. delivered.
Butcher bull prices fell 64 cents to average $88.57.
Weekly western Canadian non-fed slaughter fell 21 percent July 27 to 5,730. Non-fed exports to July 20 fell 24 percent to 4,631.
Feeders stronger
Strong demand pushed feeder prices higher.
Auction volumes have bottomed and more animals will hit the auction ring as yearlings come off grass.
A modest offering of 400-600 pound feeders traded mixed with prices $1 lower to $1.75 per cwt. higher.
Feeders heavier than 600 lb. rose $1-$3. All feeders heavier than 700 lb. are trading significantly higher than the same week last year.
Canfax weighted average steer prices for the week were 89 cents per cwt. higher and heifers were $1.42 higher. Weekly auction volume rose 43 percent to 11,136 head.
Attractive prices are drawing summer yearlings to market early.
Improved feeding margins have rallied feedlot interest in cattle, which will be ready for the 2014 first quarter fed market.
Beef lower
U.S. beef prices fell again last week.
Choice closed at $186.66 and was 12 percent or $24.70 below the May peak. Select was $181.53, down six percent or $11.80 from May.
Beef prices might have fallen to the lowest level of the season and normally trend higher into August.
Weekly Canadian AAA cut-out values to July 26 fell $1.97 to $196.86 and AA fell $2.67 to $186.78.
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.
