Fed cattle halt fall
Cattle futures stormed back last week but the Canadian cash fed market languished and prices were pressured by the rising loonie, which topped US77 cents.
Packers were unenthusiastic and feedlot managers were not motivated sellers.
Live sales were inadequate to establish an average or trend, but the market tone was $4-$6 per cwt stronger.
A few dressed trades were reported at C$280 per hundredweight delivered.
Trade in the U.S. was also light. A few cash cattle in the Plains sold at US$126 to $127 per cwt, up from $118 to $124 the previous week.
Read Also
Critical growing season is ahead for soybeans
What the weather turns out to be in the United States is going to have a significant impact on Canadian producers’ prices
In the U.S., weekly carcass weights, which have been at record heavy levels, fell for the first time in many weeks, indicating that feedlots are starting toward more current marketings.
The Alberta cash to Chicago live futures basis remains strong for this time of year but is expected to weaken in coming weeks.
Weekly western Canadian slaughter to Oct. 3 rose two percent to 35,008 head.
Cows fall
Non fed supplies are moderate, but the weak fed market knocked cow prices C$9 to $10 lower.
D1, D2 cows ranged $115-$129 to average $12.30. D3 cows ranged $95-$114 to average $105.70. Railgrade cows were $230-$235.
Butcher bulls were down $13-$17 to average $143.30.
Slaughter volumes seasonally increase from September to October.
Feeders down
The western Canadian calf and feeder indexes fell by $8 to $9 per cwt.
Calves and light stockers are now trading below year ago levels while yearlings remain a shade above last year.
Record strong basis levels relative to the March Chicago feeder contract will have to be in place next spring to realize a profit feeding cattle at today’s prices.
Cash barley bids are anticipated flat near term but premiums are noted for early 2016 delivery.
Beef weaker
U.S. boxed beef last week fell with Choice down $3.94 to $203.61 and select down $5.75 at $197.46.
As the fed cattle firms, packers will try to drive beef prices back up.
Canadian prices were not available.
