Local fed trade got off to a slow start last week with strong technical support firming asking prices and lackluster summer demand pressuring packer bids lower. Light live trade developed late Wednesday at prices $1.75/cwt lower than the previous week and dressed sales on Wednesday and Thursday were generally $2.00-3.00/cwt lower. The majority of trade was dressed at $198.00-200.00 delivered. Sale volumes last week were 7% smaller than the previous week and 21% smaller than the same week last year. The Alberta cash to futures basis widened last week to a more seasonal -8.07. Canadian fed cattle exports to the US for the week ending July 27th were at 4,270 head.
Alberta feeder prices firmed higher last week on good demand. The Canadian Civic holiday did however moderate reporting and reduced auction volumes made it difficult to establish a market trend in all prairie provinces. Canfax weighted average steer prices last week were $3.30/cwt higher than the previous week and average heifer prices were around $1.00/cwt higher. Weekly Alberta auction volumes of 7,681 head were smaller than the previous week but almost 50% larger than the same week last year. Many Western Canadian auction markets reported exclusive non-fed cattle sales last week. Canadian feeder exports to the US for the week ending July 27th were 33% smaller than the previous week and YTD feeder exports were 64% larger than last year.
Good non-fed demand on both sides of the border firmed slaughter cow prices higher again last week with D1,2 slaughter cow prices up $0.49/cwt and D3 cows $0.86/cwt higher. Western Canadian non-fed slaughter for the week ending August 3rd totaled 6,438 and YTD Western Canadian non-fed slaughter for the same week was at 201,229 head. Canadian non-fed exports to the US for the week ending July 27th were 5% larger than the previous week and YTD were 82% larger.
- Cutouts are searching for a summer bottom
- Feedlot inventories continue current
- Non-fed prices are strengthening and supportive
- The fed basis is widening
- The fed cash market has lost momentum last week
- Demand is not very supportive
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.