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 market strong
American buyers aggressively bought Canadian cattle last week, helping keep fed prices near record highs.
Fed steers averaged $190.64 per hundredweight, and heifers averaged $191.55, Canfax said.
A large number of fed heifers were offered. Most were exported south at a premium to local trade.
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Alberta dressed trade was reported at $316-$317 per cwt. delivered.
April live cattle futures continued to trade at a discount to the U.S. cash market.
The Alberta cash-to-futures basis strengthened sharply to -72 cents per cwt.
Weekly western Canadian fed slaughter to Feb. 28 rose 20 percent to 33,600 head.
Feedlot managers said live weights are rising thanks to the mild weather. Steer carcasses in the week to Feb. 28 rose 13 pounds to 882 lb.
Weekly fed exports to Feb. 21 rose seven percent to 4,516 head.
March show list volumes appear to be lower than marketing projections, which indicates that some fed cattle have been sold early.
A traditional spring rally is possible.
Local packers have a good supply for now, but lift times are expected to tighten. American buyer interest should continue this week, keeping prices steady.
Light cash trade developed in the United States at the end of the week at US$160-$162, up $2 over the previous week.
A handful of dressed sales were reported in the northern U.S. at around $257, up $2-$3 .
Cows strengthen
Strong hamburger demand and the weak Canadian dollar are supporting cull cow and bull prices.
D1, D2 cows set new records, ranging C$124-$158 to average $140.04, up $2 from the previous week and $50 higher than last year at this time.
D3 cows ranged $105-$135 to average $119.
Rail grade prices were $268-$273.
Canadian cow slaughter is running nine percent below last year, and exports are 30 percent behind.
The seasonal trend is for cow prices to continue rising to new records.
Feeders strong
The market tone generally improved last week after a slow start, resulting in weekly average prices being steady but uneven.
A good volume of small and single lots sold.
There was tremendous strength for quality grass cattle.
The premium for lighter cattle over heavier animals widened.
Quality breeding-type heifers also enjoyed a premium.
Heifer supplies should remain tight as many have been exported to the U.S.
Feeder exports to the third week of February total 66,000, up about 11,000 from the same period last year.
Some feedlots are aggressively looking for bunk replacements.
Live cattle prices will have to rally to meet profit targets.
Bred cows ranged $2,100 to $3,600
U.S. beef higher
U.S. Choice cutouts rose US$2.17 at $249.20 per cwt. Select rose $1.68 to $246.58.
Harsh winter weather in much of the eastern U.S. hurt beef demand.
The Canadian consumer price beef index in January was a record high, up .1 point from December.
The pork index rose one point and poultry rose 3.7 points.
