Active trade was reported last week with weighted average prices $0.50-1.00/cwt higher than the previous week. Live sales were at a slight premium in comparison to reported dressed trade. An improved cash trade and weaker US market fundamentals saw the cash to futures basis strengthen $2/cwt over the previous week. Moderate trade developed Wednesday and continued into Thursday. Accumulated sale volumes totaled 22,914, up 42% from the previous week. Canadian fed exports to the US for the week ending June 30th totaled 5,008, down 5% from the previous week.
Canadian feed grains have been ratcheted significantly higher and feeder cattle prices last week continued to be pressured lower. Feeder steers eased $1.25/cwt lower and heifer prices were down $0.60/cwt compared to the previous week. Auction volumes last week were seasonal at 8,929 head. Canadian feeder exports to the US for the week ending June 30th were a meager 1,220 head.
D1,2 cows eased a modest $0.58/cwt lower last week and D3’s averaged $0.38/cwt lower. Dressed prices continued to range around $148.00-154.00/cwt. Butcher bulls traded $0.32/cwt lower last week averaging $97.43/cwt. Western Canadian non-fed slaughter for the week ending July 7th was at 5,974 head and YTD was down 8% compared to last year. Canadian non-fed exports to the US for the week ending June 30th were at 4,921 head.
Bull factors
• Packer lift times appear to be shorter
• Placed against marketing’s are expected to tighten
• Outstanding showlist carryover has been cleaned up
Bear factors
• The American heat wave has reduces grilling demand
• Downgraded corn crop conditions are severely impacting the Canadian cattle industry
• Pork prices have softened and higher priced retail beef is less competitive
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.
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