Canada cattle report: Canada feeder cattle market under pressure

Technical price levels improved as the week progressed and encouraging US cash trade offered solid underlying price support as local fed values edged higher. Moderate to active trade was reported over the span of Wednesday. The Canfax average steer and heifer price close the week just above $116.00/cwt, up $2.00 from the previous week.

Accumulated sales volumes totaled 14,000. Last week’s cash to futures basis strengthened over $2.00. USDA reported 11,050 Canadian fed cattle were exported to the US for the week ending March 10th.

For the second week in a row, the feeder cattle market was under fairly significant pressure. The Canfax average steer price was $3.30 lower while heifer eased $2.15. Given the tight supplies of lighter calves, and the pull back in feeder prices, some grass buyers have stepped into the heavier feeders in order to procure supplies. Last week’s Western Canadian feeder index closed the week at $143.29/cwt. down $2.63 from the previous week. USDA reported 5,972 of Canadian feeder cattle were exported to the US for the week ending March 10th.

The volumes of cull cows coming to market continue to surprise. D1, D2 cows traded mostly steady with the previous week ranging from $70.00-84.00/cwt. D3 cows experienced a slight price improvement and are now averaging $70.00/cwt. Butcher bulls traded generally $1.50 lower compared to the previous week and are trading from $76.00-98.00/cwt. USDA reported 3,074 Canadian non-fed cattle were exported to the US for the week ending March 10th.

Bull factors

• Weekly fed export volumes were the largest reported this year
• Strengthening cash to futures basis
• Spring like temperatures across Eastern Canada and the US have improved beef demand

Bear factors

• USDA cattle on feed report saw February marketings below pre report estimates
• Beef imports into North America have risen
• Lower cutout values will not be supportive to higher fed prices

For more detailed information on markets this week please visit the Canfax website www.canfax.ca.

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