Transition week occurred
SASKATOON (Staff) – Canfax says the fed cattle trade entered what appeared to be a transition week with a lower U.S. market and a higher Canadian dollar. Sale prices fell as low as $1.50 from the week before but by week’s end the decline was partially made up.
U.S. buyers were a regular force all week long owning cattle even at their lower price. Locally, packers appeared comfortable bidding only what they had to.
The expected higher U.S. markets didn’t occur and in fact the prices went the other way. Canfax said it appears prices in the U.S. have topped for the spring and are moving lower into the summer. This trend should be expected here.
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Lots of volume
Cattle sales volume was up 14 percent from last week. Overall volumes will be large for a while now, putting packers in a spot they haven’t been in recently – they can be selective and call the shots.
Meanwhile, cow prices were firm to $1 higher again this week as good demand and tight supplies helped support prices. As fed cattle trends are lower into the summer, more fronts may get boned out to help satisfy a short supply of slaughter cows.
The price outlook is firm for this category. The D1 and D2s were $61-$71 with rail grade bids at $120 to $130.
Bred cows ranged from $750-$1,350 with bred heifers from $800-$1,250. Pairs traded strong again with prices anywhere from $1,000-$1,750.
