Fed cattle steady
Weighted average steer prices were $184.90 per hundredweight, about 50 cents higher than the previous week and heifers were $183.23, about $1 higher.
Most of the trade was dressed at $309 per cwt. delivered.
Summer lows may be behind us.
Most of the trade was conducted on a forward or formula pricing basis and cash trade was thin. U.S. bidders supported the market but no business was completed.
The cash-to-futures basis strengthened modestly to -$10.76 but seasonally it remains weak.
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Western Canadian fed slaughter for the holiday week ending Aug. 8 fell eight percent to 30,656 head.
Weekly exports to Aug. 1 fell nine percent to 3,900 head.
The cash market will continue thin as most market-ready cattle have been contracted or formula priced.
The fed basis usually weakens during the third quarter so little improvement is expected. This should improve U.S. buyer interest.
U.S. fed trade volumes were thin last week. Live fed cattle appeared to be about $1 higher live and $2 higher dressed in the north.
Tyson Foods Inc. on Aug.14 said it is permanently ceasing beef production at its Denison, Iowa, plant because of the shortage of cattle.
Cows rally
Slaughter is running about 875 head per week behind last year.
D1, D2 cows ranged $134-$148 to average $141.21, up $1.28.
D3 cows ranged $120-$136 to average $128.75
Slaughter bulls were $172.50, up $3.46, which is a new record high. It is not uncommon to see bulls post highs during August. Average D1, D2 cow prices could rally to $145 before seasonal fall pressure sets in.
Yearlings set record
Yearling steers and heifers weighing more than 800 pounds established new highs, with steers 800-900 lb. averaging $259 and those heavier than 900 lb. at $247.
U.S. buyers are showing interest on feeder heifers and western Canadian feedlots are aggressive on yearling steers.
Steers 800-900 lb. are trading $41 per cwt. higher than last year, while heifers are $51 higher.
Heifers 850 lb. were about $11 less than their steer counterparts, and within pennies of the narrowest steer-heifer price spread this year.
Annual price highs for 850 lb. steers tend to be set in either August or October.
Steer and heifer calves for fall delivery saw generally steady prices. There appears to be a premium for yearlings coming off grass over those fed a dry lot ration.
With recent rains across the Prairies, some yearlings are being turned back onto pasture. Cow-calf pairs traded at $2,200 to $3,750.
Western Canada on feed
The number of cattle in feedlots in Alberta and Saskatchewan was 674,572, steady with last year at the same time and three percent more than the five-year average.
It was the first time in 11 months that inventory was steady with the year-ago number.
Placements in July were 59,669, up 79 percent over last year at the same time when placements were at a record low.
Marketings in July were 131,901, the largest this year but down eight percent from last year at the same time.
Beef rallies
U.S. beef cutout values surged sharply higher with generally good demand on a light to moderate offering. Choice cutout was US$245.09, up almost $10, and Select was $235.13, up $6.34.
Wholesalers were aggressively topping up middle and end cut inventories for the Labour Day weekend.
Canadian cutout values were not available.
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.
