Fed prices last week trended seasonally lower. The Canfax weighted average steer and heifer price closed the week at $109.75/cwt and $109.00/cwt respectively, down over $3.00 from the previous week. Light buyer interest was observed out of the US. Lower prices last week saw producers pass or only move a portion of their intended offering. Accumulated sale volumes last week totaled 16,400. The Alberta fed cash to futures basis weakened to close the week at -9.13. Canadian fed exports to the US for the week ending June 9th totaled 6,128.
Despite technical weakness local feeder prices have remained intact. The Canfax average steer price strengthened $1.95 while heifers moved $0.73 higher. The Western Canadian feeder index closed the week at $146.00/cwt, up $4.24 from the previous week. Uniform packages of fall born calves have been sporadic but continue to test the top end of the Canfax price range. Selling interest in forward contracting yearlings off grass is improving. Reported auction volumes totaled 11,000. Canadian feeder exports to the US for the week ending June 9th totaled 3,138.
Local non-fed values were hit by a weakening US cow market and softer trim prices. Last week the average D1, D2 cows transitioned $3.50 lower with trade reported from $75.00-88.00/cwt. D3 cows average $72.43. Rail bids were reported from $148.00-154.00/cwt delivered. Average butcher bull prices eased $0.50/cwt to average $98.75. Canadian non-fed exports to the US for the week ending June 9th totaled 4,628.
• Beef prices should find underlying support from strengthening pork values
• Processing margins remain positive
• Choice ribs and loins have been price supportive
• Commercial and non-commercial funds exiting the cattle complex have suppressed technical levels
• USDA’s June 1st cattle on feed reported on feed numbers up 2% from the same time last year which was above pre report estimates of 100.7%
• Increasing North American slaughter volumes have filled up the beef pipeline
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.