FED MARKET LOWER
The fed steer weighted average price fell $7.53 to $143.25 per hundredweight, and heifers fell $10.55 to $140.73.
Prices were the lowest since November 2016.
Cattle bought during the week were scheduled for delivery at the end of the month.
Cattle prices are falling as beef values drop, which they normally do in the heat of summer when consumers look for lighter fare.
In the United States, dressed sales in Nebraska and Iowa fell US$3, while in southern regions live cattle traded $1-$2 lower.
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Weekly western Canadian slaughter to July 1 totalled 38,673 head, 10,100 more than the same week last year.
In addition to big slaughter volumes, fed cattle exports to the U.S. have recently trended above year ago levels. Canadian fed cattle exports have averaged 5,055 head over the past four weeks, up from 3,323 last year.
The strong futures market this spring might have caused feedlots to contract more cattle with packers for summer delivery, and so opportunities to squeeze supply on the cash market could be limited.
The Alberta to Nebraska cash basis widened to -$9.52 from -$3.39 the previous week.
COWS FALL
D1, D2 cows ranged C$97-$120 to average $107.33 per cwt., down $1.74. D3 cows ranged $85-$104 to average $93.83.
Rail grade cows ranged $200-$205.
Bulls averaged $125.36, down $1.92.
Weekly western Canada non-fed slaughter to July 1 rose 11 percent to 6,075. Slaughter is up nine percent for the year at 182,458 head.
Exports to June 24 fell to 3,092 head. They are down 26 percent on the year.
Dry pastures could cause producers to sell more cows, driving up auction volumes, but Canfax believes there will be good demand and steady prices.
FEEDERS FALL
Seasonally weaker fed prices, the stronger Canadian dollar and rising grain values all weighed on the feeder market.
Prices were generally down $7-$8 per cwt.
Calf prices were $4-$10 lower over the week.
Yearlings fell a similar amount.
Pastures in the southern parts of the Prairies and the northern U.S. Plains are deteriorating in the hot, dry weather. This is forcing a few yearlings to market earlier than normal.
Weekly auction volume fell 15 percent to 9,045 head. Volume is up 19 percent for the year.
Weekly exports to June 24 rose to 1,658. Exports are down 44 percent for the year.
Potential deferred fall delivery premiums could wane if grazers see their grass dry up, forcing them to market early.
Producers will monitor forage production. If a small hay crop drives prices higher, it would hurt backgrounding margins and discourage retained ownership.
Bred cows ranged $1,450-$1,800 per head. Cow-calf pairs ranged $1,800-$2,800.
BEEF LOWER
The U.S. Choice cutout to July 6 fell $6.50 to US$220.05, while Select fell by the same amount to $203.76. Choice is about $10 higher than last year at this time.
Canadian cutouts were not available.
