FED CATTLE STEADY
Fed steers averaged $156.67 per hundredweight, up 50 cents, while heifers were $156.23.
Cold and snow may have contributed to the modest cash offering and discouraged trade interest.
Most trade was dressed at $262-$264 delivered.
Most delivery times were for one to two weeks out.
The Alberta cash-to-futures fed basis weakened moderately to +$2.86.
Weekly western Canadian fed slaughter to Feb. 4 fell seven percent to 25,317 head.
For the year western slaughter is down eight percent.
The week’s exports to Jan. 28 were 4,834 head, down 20 percent compared to the last year. For the year exports are down 16 percent.
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Feedlot inventories are current even with extra non-fed cattle in the slaughter mix and reduced hours at both major Alberta packing plants.
Canadian carcass weights also indicate that feedlots are current. Steer carcasses fell two pounds over the week, while heifers rose one pound.
The flow of fed cattle from eastern Canada to the west appears to have slowed.
All these factors should support prices for the second half of February.
In the U.S., cash cattle in the Plains traded at US$119 to $120.50 per cwt., steady to $1.50 higher than the previous week.
COWS STEADY
D1, D2 cows ranged C$87-$100 to average $93.25 per cwt., up 11 cents. D3 cows ranged $75-$90, to average $82.50.
Railgrade cows were $180-$185.
Bulls averaged $102.44 down $1.97.
Western Canadian cow slaughter totaled more than 8,500 head, the fourth consecutive week that volumes have trended above year ago levels.
It is surprising how many cows have been slaughtered this winter considering anecdotal evidence suggests fewer cows are on feed compared to last year.
The explanation is that fewer cows have been exported.
Cow carcasses were 81 lb. lighter than the same week last year.
Cold weather last week might have forced a one week delay in cow shipments.
GRASSER DEMAND STRONG
The Canadian feeder index was $169.10, up $1.95 while the calf index was $190.65, up $2.67.
Over the past couple of weeks, calf and light stocker prices have held together better than heavier feeders.
This is common for this time of year.
From their highs in January, 850 lb. steers have fallen $11.50 per cwt. In four recent years — 2006, 2012, 2013 and 2016 — 850 lb. steers established highs during January.
In each of those years, first half lows were set in April or May.
Dry pastures were a major concern last spring leading to more cattle going into feedlots instead of being placed on grass.
This year moisture is good and grass buyers are expected to be aggressive. Stocking rates might increase by 20 to 40 percent.
On a cash-to-cash basis, Alberta 550 lb. stocker calves and 750 lb. feeders are at a $6-$7 premium to the U.S. market.
Bred cows were $1,300-$2,800 per head. Bred heifers were $1,400-$2,800.
BEEF FALLS
February and March are the slowest months for beef demand. Demand usually starts to pick up after Easter.
U.S. Choice cutouts were US$188.71, down $4.30 and Select was $185.82, down $4.80.
The weaker beef prices caused U.S. packers to slow slaughter to 574,000, down 3.2 percent.
Canadian prices were not available.
