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 weaker
The western Canadian fed sales volume was too light last week to establish a reliable market trend.
However, the weekly steer price was around $4.25 per hundredweight lower than the previous week, which put prices in the mid-$180s and heifer prices around $2.50 lower.
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Packers are well bought through July and are struggling with negative operating margins.
Chicago live cattle futures fell, and cash cattle in the U.S. Plains sold at US$148 per cwt., $2 to $3 lower than the previous week.
A few dressed sales were reported in Alberta midweek at C$308 to $310 per cwt. delivered, down $5 to $6 from the previous week.
The weekly cash-to-futures basis is close to the normal July average of -$6.88.
Weekly western Canadian fed slaughter to July 11 rose four percent to 33,523 head. Weekly fed exports for the short week ending July 4 rose 69 percent to 3,409 head.
Signals from the U.S. market are lower and Canadian packers have good supply, but a more normal Alberta-Nebraska cash basis and a weaker Canadian dollar means there should be new buying interest from American packers.
Cows steady
D1, D2 cows were steady, but prices traded at a $4 discount to U.S. utility cow prices.
D1, D2 cows ranged $130-$145 to average $135.90 per cwt., and D3 cows ranged $115-$130 to average $124.75. Slaughter bulls averaged $170.18, up more than $3.
Bulls are trading $45 higher than the same time last year, while cows are $20-$22 stronger.
The spread between butcher bulls and D1, D2 prices is wide at $30.
A few cow-calf pairs with older calves at side are being split at auction.
Feeders steady
Steers weighing 800-900 pounds traded steady and were only $2.50 short of highs set in June.
The forward delivery market was lightly tested with a good mix of yearlings and calves on offer.
Yearling prices for August and September delivery were steady, but the basis appeared weaker.
Adjusted 850 basis levels f.o.b. on most August delivery steers were -$20 to -$22, weaker than the five year 2010-14 average of -$12.65.
Eastern Canadians were active buyers of western Canadian calves, showing particular interest in heavier steers.
Alberta and Saskatchewan 700-750 lb. steers for October delivery were priced $279-$298 per cwt., while load lot groups of British Columbia, Alberta and Saskatchewan calves 550-660 lb. for the same delivery window traded from $310.50-$327.75.
They were top-end, one-owner cattle, making it difficult to make an apples-to-apples comparison.
Steer calf prices for October delivery are $30-$40 higher than October 2014.
Beef falls
U.S. boxed beef prices fell with Choice down $5.77 per cwt. and Select down $5.76.
Prices are now $13-$16 below year-ago levels and $1-$4 below the spring lows set in February.
Canadian boxed beef prices for the weeks ending July 4 and 11 were unavailable.
