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 rally
The fed steer average price last week almost hit $200 per hundredweight.
In Canada, packers eventually bought most of the week’s modest cash offering at an average steer price of $199.86, up 75 cents from the previous week.
American packers bought a few Canadian cattle at US$270 dressed, steady with the previous week.
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Alberta dressed sales rose C$1-$4 with most trade from $335-$338 per cwt. delivered.
Alberta packers were pulling in cattle from Saskatchewan and Manitoba.
The April Chicago live cattle contract fell 4.225 cents over the week, three cents on Friday alone, but the Canadian cash market held up well.
Weekly Alberta cash-to-futures basis strengthened to -$3.07 from -$5.42.
Reduced slaughter rates prompted packers to pressure cash cattle in the U.S. Plains last week to US$163-$165.50 per cwt. live, down from $167-$169 the previous week, Reuters reported.
Weekly western Canadian slaughter to April 4 fell 17 percent because of the Good Friday holiday to 26,075 head.
Weekly fed exports to March 28 rose 10 percent to 7,084 head.
April show lists should moderate, and cash trade will be limited.
U.S. interest should continue to enhance competition.
A few fed calves traded last week, and excellent feeding conditions could increase that number. However, profitable feeding margins might encourage feedlots to keep early calves on feed as long as possible.
Cow price up
Western Canadian weekly cow slaughter has been 4,000-4,300 head in recent weeks, the lowest seen this year.
Accumulated Canadian cow slaughter this year is down 18,600 head, while accumulated exports are down more than 25,000 head from 2014.
D1, D2 cows ranged $140-$155 to average $148.17, up $2.50. D3 cows ranged $120-$140 to average $129.25.
Rail grade cows ranged $279-$284 per cwt.
The butcher bull average was $167.90, up $10 over two weeks.
Higher yielding bulls are now trading in the mid-$180s.
Western Canadian D1, D2 cows are trading at a $5-$7 premium over U.S. utility cow prices.
There is a chance northern U.S. cows will come into Canada if this premium continues to grow.
Feeders hit record
The western Canadian calf and feeder index climbed $9.16 to $226.03 per cwt., a new record, because demand for all classes of feeders was strong.
The 850 pound steer-heifer price spread has been wide this year, but it narrowed over the past couple of weeks to $11 per cwt.: $248.33 steers versus heifers at $237.25.
Export interest and breeding premium are contributing to the narrowing spread.
Interest for yearling forward contracting has started to pick up. Steers 875 lb. in Saskatchewan traded at $253 for September delivery.
Exports rose to 17,987 head, up six percent from the same time last year.
Many of the feeders going south are contract cattle.
Cattle lighter than 500 lb. are rallying as much as heavier stockers, likely because they are too light to go on grass. Also, quality has been mixed.
Lethbridge cash barley prices have jumped $20-$30 higher, the strongest prices in nearly a year.
Feed barley should remain firm over the next couple of months because of tight supplies and brisk export movement.
Beef stronger
Spring grilling demand and reduced North American beef production pushed boxed beef prices higher.
U.S. Choice was up US$7.72 at $258.39 in the week ending April 9, and Select was up $5.49 at $252.45 per cwt.
The cutout was $30-$35 per cwt., or 13-16 percent above year ago levels.
Cattle slaughter usually increases this month, but beef supplies are expected to remain tight because year-to-date cattle slaughter is down seven percent.
The U.S. port backlog of meat is now mostly cleaned up, but American exports are challenged by the strong buck and strong competition from cheaper pork.
Canadian cutouts for the week ending March 28 were unavailable.
