Fed cattle weaken
The fed cattle market was lower last week by almost $2 per hundredweight while the basis narrowed by about the same amount, said Canfax.
Alberta fed cattle prices ranged from $93-$96.50 live and $155.75-$161.30 on the rail as the combination of the strong Canadian dollar, ample fed cattle supplies and a weakening U.S. fed and beef market pressured prices lower.
Fed steers averaged $96.05 per cwt., down $1.78 from the week before and fed heifers averaged $95.81, down $1.66.
The Canada-U.S. basis narrowed to $4.33 under from $6.25 under the week before, bucking the long-term trend of widening at this time of the year, said Canfax.
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Given the narrow basis level, producers were active sellers with more than 22,500 head trading.
Fed cattle exports continue to decline with only 7,678 head exported two weeks ago, the smallest weekly total this year.
The basis should widen as it normally does as summer approaches. The lower U.S. market, high Canadian dollar and widening basis are expected to pressure prices, with prices in the low $90s possible, said Canfax.
Beef drops further
The beef market fell again as packers cut prices to stimulate movement.
The Choice cutout fell $4.65 US to $155.41. The Select fell $2.09 to $146.44.
Box movement was good as retailers restocked inventory after the Memorial Day weekend.
In Canada, the market also dropped as packers followed their U.S. counterparts. The Calgary wholesale price for delivery this week was $165-$166 Cdn.
Feeder markets weaken
Feeder cattle prices were under pressure late in the week.
Light steer calves 300-500 pounds were $1-$3.50 lower and heifers 300-500 lb. were steady to $2.50 lower.
Grass steers 500-800 lb. were steady to $1 lower while heifers were $1-$1.25 lower.
Feeder steers 800-900 lb. and heavier were 25 cents-$1 lower and heifers 800-900 lb. and heavier were $1-$1.50 lower.
Alberta auction market volume was strong with 25,720 head sold, 10 percent more than the week before and up 20 percent from last year.
Butcher cow prices dropped $1.50 for D1, 2 cows and D3 were 25 cents lower. Butcher bulls were 75 cents lower.
Feeder cattle exports for the week ending May 26 were 4,695, down 33 percent from the week before.
Canfax expects feeder prices will be lower this week in step with fed prices.
Volumes should start to dwindle in the coming weeks.
Quality grass cattle will likely bring the top end of prices.
In stock cow trade, cow-calf pairs were steady at $900-$1,200, with tops to $1,400 and plain types $600-$850.
Bred cows in central and northern Alberta traded higher with at $850-$1,050, with tops to $1,230 and plain types $550.
Hogs edge lower in U.S.
Hog prices weakened as pork prices faded and reduced packers’ margins.
Iowa-southern Minnesota hogs traded
June 1 at $54 US per cwt., down from $55
May 25.
The U.S. composite pork carcass cutout value was $74.18 June 1, down from $76.29 May 25.
Slaughter for the week, which was shortened by the Memorial Day holiday, was estimated at 1.72 million, compared to 1.98 million a week ago and 1.67 million a year ago.
Bison steady
