Fed cattle near record
The weighted average steer price rose $1.50 to $190.74 per hundredweight, vying for the record high.
Heifer trade was not registered.
The week’s cash offering was a diverse mix of heiferettes, Holsteins and a limited listing of quality fed cattle.
A variety of bids, live and dressed, were reported, but most of the trade was dressed from $314-$320 per cwt. delivered. American buyer interest was reported, but no significant volumes traded south.
The week’s cash-to-futures basis weakened by more than $3 to -$11.22 which was in line with the five year average.
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Weekly western Canadian fed slaughter for the short week ending Feb. 21 was down 15 percent at 27,108 head. Slaughter is down one percent so far this year.
Weekly fed cattle exports to Feb. 14 fell three percent to 4,222 head.
Exports are down 49 percent this year.
Fed marketings should rise in March but remain below year ago levels.
Packers succeeded in pushing cut-out values higher with slower slaughter. They have comfortable supply, which could cause them to lower bids this week.
Feedlot supplies are generally current, but excellent feeding weather has improved performance, which might bring cattle to market earlier than expected.
Cow prices strong
Western Canadian non-fed slaughter volumes continue to run below last year. Packers killed 6,341 head last week, the fewest since the first week in January.
Canadian and U.S. cow prices are moving in opposite directions. Canadian cow prices are up about $7 since the start of January, while U.S. utility and canner prices have fallen $2-$3.
D1, D2 cows ranged $130-$148 last week to average $138 per cwt., and D3 cows ranged $115-$133 to average $123.
Rail grade prices ranged $265-$270.
Feeders weaken
Steers 600-700 pounds fell $3, moving off of highs two weeks ago. By the end of last week, the feeder market appeared to be down by about $2.
The Alberta weekly auction volume was large at 30,000 head.
Annual weekly highs have occurred during February only once in the past 15 years, in 2006. Prices usually rise into spring.
Prices have increased from February to March in 13 of the past 15 years with an average monthly increase of four percent. Steers 650 lb. in February averaged $280 per cwt., so a four percent increase would equate to $291 for March.
Prices will likely fall short of that but should be well supported because competition for grass cattle will likely be firm.
Exports to the United States will likely increase this month.
There are reports that large contract numbers are booked.
U.S. beef stronger
Reduced slaughter forced U.S. beef cutouts higher with Choice at $247.03, up $7.11, and Select at $244.90, up $8.19.
Canadian cut-out values are still unavailable.
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.
