Fed market weaker
Fed cattle prices fell last week as the traditionally softer summer market approached, said Canfax.
Steer prices fell $1.75 per hundredweight to average $89.79 and heifers fell $1.75 to average $89.30.
The fed steer trade range was $87.30-$90.60 per cwt. live and $145.50-$150.80 rail, while heifers were $88.85-$89.55 live and $145.50-$150.80 rail.
Offerings were large. The supply of market-ready cattle this month is larger than in April and May. Volume was good at about 21,000.
Local packers did most of the buying because the narrow basis limited cross-border trade, Canfax said.
Read Also
Bond market seen as crop price threat
A grain market analyst believes the bond market is about to collapse and that could drive down commodity values.
The Canada-to-U.S. cash basis narrowed to $4.94 under from $7.28 under the week before.
Fed cattle exports two weeks ago totalled 7,688 head while the year-to-date total is 361,355, up 14 percent from a year ago.
With steady-to-rising offerings and falling beef prices, the expectation is for lower fed prices, barring a surprise rally in packer demand or a lower Canadian dollar.
Beef weakens
U.S. cutouts fell with Choice down $4.36 US to $146.11 and Select down $3.96 to $139.94. The Choice-Select spread is $6.17.
Movement was moderate on heavy offerings, Canfax said.
Canadian packers also struggled to move product. Retailers seem resistant to paying higher prices.
Packers are focusing on the new specified risk material rule that will be effective July 12.
The Calgary wholesale beef prices for delivery this week were $156-$158 Cdn per cwt.
Light feeders steady to higher
Feeder cattle trade was fairly flat with most classes trading steady, said Canfax.
The exception was steers 900 pounds and heavier that traded $2.50 lower.
Light steer calves 300-500 lb. traded steady to $1 higher.
Steers 500-700 lb. and 700-900 lb. were 50 cents lower.
Heifer calves 300-500 lb. were 75 cents lower and 500-800 lb. heifers were steady to $1.25 higher.
Heifers 800-900 lb. and heavier were steady to 50 cents higher.
Alberta auction market volumes were softer with about 17,500 head sold, down 30 percent from the week before and 18 percent lower than last year.
Year-to-date auction market volume was 839,421 head, up six percent from last year.
D1, 2 cows were steady while D3 cows were $1.25 lower. Butcher bulls rose 75 cents.
Feeder cattle exports for the week ending June 9 were 5,939 head.
Auction market volumes will decline into summer as usual.
With feed barley futures trading higher and weak fed cattle markets, feeder prices will be under pressure, said Canfax.
Stock bred cows in central and northern Alberta traded steady at $850-$1,100, with tops to $1,200 and plain types $650-$800.
Bred heifers in northern Alberta on plain types traded $650-$850. Cow-calf pair trade was strong at $900-$1,300, with tops to $1,500 and plain types $640-$850.
Cattle on feed
Alberta and Saskatchewan feedlots had 950,846 head June 1, up four percent from last year at the same time.
Placements in May totalled 156,021, steady with last year. Marketings were 170,141, down four percent from last year on slower exports and domestic slaughter. Other disappearance was 54,669, up 64 percent from last year because more cattle went on grass to avoid high grain costs and take advantage of good pasture moisture.
Hog prices soften
Strong demand pushed pork prices higher last week and that led packers to increase bids on hogs in the United States. Bacon demand often rises at this time of year as BLT sandwiches become popular in the hot months.
The supply of market-ready hogs also tightened, adding more support for hog prices.
Iowa-southern Minnesota hogs traded at $54.50 US per cwt. June 15, up from $53.50 June 8.
The U.S. composite pork carcass cut-out value was $77.35 June 15, up from $72.89 June 8.
Slaughter for the week was estimated at 1.92 million compared to 1.9 million the week before and 1.82 million a year ago.
Bison steady
The rising dollar kept pressure on prices, said the Canadian Bison Association.
Grade A carcasses from bison bulls younger than 30 months in the desirable weight range in Canada dipped to $1.80 per lb. and heifers were $1.60-$1.65 per lb.
Rail prices for top quality, youthful, older-than 30-month bulls and heifers were $125-$150 per cwt.
In light trade, cull cows were 40 cents per lb. hot hanging carcass.
The U.S. Department of Agriculture reported June 11 that carcasses from bulls younger than 30 months rose to an average of $187.82 US per cwt. in May, up from $183.98 in April. Heifers were $167.21. Cull cows rose to $125.58 per cwt.
Lambs steady
Ontario Stockyards reported 1,094 sheep and lambs and 72 goats traded last week.
All lamb, sheep and goats traded at steady prices.
