Fed prices edge higher
Beef buying on the U.S. Memorial Day weekend, May 26-28, was strong, raising hopes for good sales through June despite a weak U.S. job market.
Improved beef cut-out values and the weak loonie helped cattle prices in Canada.
Canfax said fed steers for the week averaged $113.18 per hundredweight, up nine cents and heifers were $113.09, up 63 cents.
Last year at the same time, fed values had slipped below $100 per cwt.
Interest from Canadian packers was supportive. U.S. interest was moderate due to larger showlist volumes in Nebraska and Colorado.
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Sales for the week totalled 17,007, down 18 percent from the previous week.
The cash-to-futures basis strengthened to -$6.98, while the cash-to-cash basis weakened slightly.
Weekly fed exports to May 19 totalled 7,820, up seven percent from the previous week.
Canadian steer and heifer carcass weights are 23 pounds and 56 lb. respectively, larger than the same week last year.
Excellent performance has pushed cattle weight gain well ahead of schedule. However, market-ready supplies in June are anticipated to be manageable.
Cows rise
Non-fed slaughter cow prices rose more than 75 cents per cwt.
D1, D2 cows ranged $75-$89 to average $81.10.
D3 cows ranged $67-$80 to average $72.50.
Good demand for leaner cows pushed rail prices up $3 to $155-$161 per cwt.
Butcher bull prices rose more than $4, pushing the average to $97.14.
Top end bulls traded as high as $110.
Weekly exports of non-fed cattle to May 19 rose 19 percent to 3,465 head.
Excellent North American hamburger demand and seasonally lower marketings should support prices.
Feeders stronger
A light to moderate volume of feeder cattle sold generally $2 per cwt. higher.
Weight and quality varied, making it difficult to determine a trend for specific types.
Generally, there is good buyer interest in anticipation of high fall feeder prices.
Auction volume was up 11 percent at 15,438 head, down six percent from last year.
Non-fed cattle made up a significant portion of the week’s trade.
Weekly feeder exports to May 19 rose 15 percent to 5,747 head. This year exports are up 83 percent to date.
Good feedlot interest on both sides of the border for bunk replacements should support prices, as will the lower loonie and weaker corn prices.
U.S. beef rises
The U.S. Choice cut-out composite rose $2.62 to $197.25 on June 1 while Select fell 10 cents to $185.26.
The Montreal wholesale for delivery this week traded at $210-$212.
Canadian cut-out values for the week of May 25 were unavailable.
Weekly Canadian fed slaughter to May 26 was down six percent at 44,643 head.
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.
