Supply and demand fundamentals outweighed the technical aspects of the market as fed values pushed higher on Wednesday. Active trade was reported by Wednesday afternoon and continued into Thursday. Cattle sold on a live basis were steady to $1.00 higher while dressed sales strengthened $2.00. Accumulated sales volumes totaled 21,023, up 51% from the previous week. Canadian fed exports to the US for the week ending April 7th were fully steady with the previous week totaling 11,357.
Lackluster feeding margins continued to moderate feeder prices last week. The Canfax average feeder steer price was down $0.37/cwt compared to the previous week while heifers traded $0.84 lower. Last week’s auction offering was surprisingly 3% larger than the previous week. YTD auction volumes are 15% lower than the same week last year. Canadian feeder exports to the US for the week ending April 7th totaled 5,504 head.
D1,2 cows saw prices over $2.25/cwt higher last week to average $78.81/cwt while D3 cow prices firmed slightly higher. Rail prices surged $3.00-4.00 higher last week as well. Strong demand rallied butcher bull prices $2.88 higher for a weekly average of $90.13/cwt. Canadian non-fed cattle exports to the US for the week ending April 7th were at 3,254.
Bull factors
• American packers remain short bought
• Choice and Select cutouts closed the week $10.00 and $8.00 higher respectively
• Trim demand is strengthening
Bear factors
• American packers remain short bought
• Choice and Select cutouts closed the week $10.00 and $8.00 higher respectively
• Trim demand is strengthening
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.
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