With local packers comfortably bought and lackluster cash interest out of the US, feedlots traded a moderate volume of cattle this week. Live prices were generally $0.25/cwt to $0.50/cwt lower than the previous week while dressed trade was fully steady at $184.00 delivered. A moderate volume of formula priced cattle headed south last week but no significant cash trade was reported. Technical issues have delayed the USDA’s Canadian exports report for the week ending September 1st. USDA has however revised the August 25th report which indicates an additional 2,179 fed cattle were imported from Canada for a total of 5,266 head. The Canfax average feeder steer price was $1.08 higher while feeder heifers strengthened $0.17. A large offering of forward delivery calf sales were reported with over 10,000 head trading over the past week. Alberta auction volumes last week totaled just over 37,000. The Western Canadian feeder index was over $2.50 lower last week. Slaughter cows traded $0.75-2.50/cwt lower than the previous week and rail bids were $2.00 lower. Butcher bull prices have now slipped below $90.00/cwt.

Bull factors

  • Packers have maintained solid cutout values

  • Market ready supplies are tightening moving forward

  • U.S. fed exports increased last week

Bear factors

  • XL Foods voluntarily recalling ground beef due to E. coli

  • The Canadian dollar remains globally strong

  • Pork supplies are large

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