Fed cattle strengthen
Canfax said fed steers averaged $202.51 per hundredweight, up 99 cents and heifers were $202.92, up $1.97.
Most of the dressed sales were $2-$3 per cwt. higher at $342 delivered.
Most forward contracted fed cattle for June had been locked in at the $180 to $185 range, which has allowed buyers to solidify recent cash cattle bids.
However, one packer did most of the buying last week and by the end of the week prices were a little lower.
Fed cash marketings were the largest this year but in a historical context they were moderate.
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The fed cash-to-futures basis was about steady at +$13.46 discouraging American buying in the Canadian market.
Weekly western Canadian fed slaughter to May 30 rose 17 percent from the previous holiday shortened week to 32,089 head.
Weekly exports to May 23 were 1,619 head, down because of the May holidays in Canada and the U.S.
Feedlot supply is current, providing managers some market power, however wholesale beef prices are struggling. In the U.S., cool rainy weather in many areas is discouraging outdoor grilling.
In the U.S. a fed cash price was not established last week as packers suffering reduced beef prices did not want to aggressively bid and feedlots held out for better prices.
Cows steady
More slaughter cows went to market but prices were mostly steady.
D1, D2 cows ranged $140-$158 per cwt. to average $147.50. D3 cows ranged $120-$142 to average $131.25.
Railgrade cows were $280-$285.
Butcher bulls rose 75 cents to $170.63.
The increased offerings are likely late-calving cows but there are also a few bred cows as pastures dry out.
Packers are keeping a floor under the bred cow market but are less aggressive on heavily pregnant cows.
Feeders stronger
The weaker loonie and stronger nearby feeder futures supported Canadian feeder cash price and the forward delivery market.
Cash-to-futures basis improved. On forward delivery cattle basis levels appeared generally steady to stronger.
Feeder prices usually rise going into June. Steers 850 lb. were $258.50 per cwt., which was already four percent higher than the May average of $248.51.
On heavier feeders, buyers are bidding more aggressively on the steers than heifers. Steers weighing more than 800 lb. are averaging $69.77 more than last year while heifers are $63.25 higher.
Seasonally lighter volume at auction resulted in volatility in the calf and feeder indices.
A sharp 43 lb. increase in the feeder index base weight over the week saw prices close lower at $262.62, down $8.77, adjusting to the weight increase.
Forward delivery steers in Alberta and Saskatchewan weighing 950-1,000 lb. for August-September delivery traded $240- $248.
Beef weakens
U.S. Choice crashed $10.77 to $248.48 and Select was $240.51, down $6.23.
Memorial Day sales were mixed and movement the following week was a disappointment, forcing retailers to offer beef at sale prices.
Buyer interest is expected to soften and move from steaks to hamburgers and hot dogs
Weekly Canadian boxed beef prices to May 30 saw AAA at $313.77, down $4.08 and AA at $307.42 down $1.88.
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.
