July Cattle Market Update August 1, 2017 All prices are quoted in Canadian dollars per hundredweight ($/cwt) unless otherwise stated.

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1 This information is provided as a resource by Saskatchewan Agriculture staff. All stated cattle prices are based on the weekly Canfax Market Outlook and Summary. Please use this information at your own risk. July Cattle Market Update August 1, 2017 All prices are quoted in Canadian dollars per hundredweight ($/cwt) unless otherwise stated. Saskatchewan Feeder Steer and Feeder Heifer Prices ($/cwt) Feeder Steers lb. July 28/2017 Average N/A N/A $ $ $ $ $ July 28/2017 Range N/A N/A weeks Change N/A N/A -$ $ $ $14.14 N/A June 30/2017 Average N/A N/A $ $ $ $ N/A July 29/2016 Average N/A N/A N/A $ $ $ N/A Feeder Heifers lb. July 28/2017 Average N/A N/A $ $ $ N/A July 28/2017 Range N/A N/A N/A 4 weeks Change N/A N/A -$ $ $13.04 N/A June 30/2017 Average N/A $ $ $ $ $ July 29/2016 Average N/A N/A N/A N/A $ $ Source: Canadian data is provide by CanFax and cannot be redistributed without Canfax consent ( Note: Prices are determined from Saskatchewan auction marts' reports of sale results from Thursday of the previous week to Wednesday the current week. N.A. means not available due to lack of sufficient data. Canfax reported that a total of 10,119 head of cattle were sold in Saskatchewan over the last four weeks in July, up from 6,462 head sold the same four weeks in The drier summer to date has impacted grazing capacity in Western Canada for grassers and forced some cattle to market quicker than in previous years. Saskatchewan feeder steer prices over the four weeks in July were lower compared to prices the week of June 30, Feeder steer prices in the reported 500 to 900 lb. weight categories over the four weeks (month) have declined between $10.42 per cwt and $22.21 per cwt. On average, Saskatchewan feeder steer prices declined by over $17 per cwt over the month of July; with the largest price decline in the lb. feeder steer weight category. Feeder steer prices did rebound last week with the lb. feeder steer weight category increasing $13.50 per cwt and the lb. weight category increasing $5.69 per cwt, from the previous week. Saskatchewan feeder heifer prices over the last four weeks ending July 28 were lower in all the reported weight categories with prices declining between $13.04 per cwt and $26.62 per cwt. Feeder heifer prices for the month of July have declined on average by almost $18 per cwt; with the largest price declines in the lb. feeder heifer weight category. 1

2 Saskatchewan feeder cattle prices are provided by Canfax (# ) or ( and cannot be redistributed without permission. The Saskatchewan 750 lb. feeder steer basis compared to the July 27, 2017, U.S. feeder cattle index at US$ per cwt was calculated at (+$15.26) per cwt ($ US$149.36/0.8034, a basis widening of $2.68 per cwt from (+$17.94) per cwt the week of June 29, Feeder cattle daily futures prices were mixed last week with big losses on Monday (July 24) resulting from the July 21st USDA Cattle on Feed Report; pushing prices lower for the week. The nearby August 2017 contract declined US$6.900 per cwt to settle last Friday at US$ per cwt; while the October contract declined US$5.100 per cwt to settle last Friday at US$ per cwt. The August-to-October feeder cattle futures prices have only declined between US$0.075 per cwt and US$1.875 per cwt since June 30, Prices had moved higher mid-july before declining. Source: CME, LMIC Source: CME, LMIC Live daily cattle futures prices were also mixed last week with losses last Monday to push prices lower, week-over-week. The nearby August contract was down US$3.525 per cwt to settle last Friday at US$ per cwt. The October contract declined US$4.975 per cwt last week to settle Friday at US$ per cwt. Prices in July moved higher until mid-july before trending lower after the USDA Cattle on Feed Report released July 21. The nearby live cattle futures prices since June 30 have declined US$3.40 per cwt for the August contract and US$2.775 per cwt for the October contract. Iowa cash corn prices settled last Friday at US$3.22 per bushel, down six cents from US$3.28 per bushel the previous Friday. Daily corn futures were mixed last week down early in the week to push prices lower, weak-over-week. The September contract declined 5 ½ cents to settle last Friday at 3.74 ¼ per bushel; while the December corn contract declined 5 ½ cents to settle last Friday at 3.88 per bushel. Weekly corn prices peaked the first week of July before declining. 2

3 Fed and Non-fed Cattle July 28, Steers (Alberta) Live Rail Cows (Alberta) 2017 $ $ to $ June 30, 2017 $ $ to $ Change over Month -$8.31 -$15.50 to -$16 D1,2 Live $ $ $7.07 D3 Live $89.50 $ $6.00 Rail $ $ $13.00 Source: Canfax. (n/a = not available, n/c = no change) Prices for liveweight, non-fed cattle in Alberta were steady to lower last week. The price of D1,2 slaughter cows declined $0.29 per cwt to average $ per cwt; while the price of D3 slaughter cows declined $2.08 per cwt to average $89.50 per cwt; from the previous week. Prices over the last four weeks in July were overall lower as the price of D1,2 slaughter cows declined $7.07 per cwt and the price of D3 slaughter cows declined $6.00 per cwt since June 30, Fed cattle prices for Alberta fed steers averaged $ per cwt last week, down $1.55 per cwt from $ per cwt the previous week. Fed cattle prices over the last four weeks have declined by $8.31 per cwt since the week of June 30, Western Canadian slaughter cattle prices are provide by Canfax and cannot be redistributed without permission from Canfax ( ). The live (FOB feedlot) weighted average 5-area (Texas/Oklahoma/New Mexico, Kansas, Nebraska, Colorado and Iowa/Minnesota) weekly fed steer price in the U.S. was reported at US$ per cwt last week, down US$2.17 per cwt or 1.8 per cent from US$ per cwt the previous week; but up slightly from US$ per cwt the same week a year ago. U.S. fed steer prices were mixed in July but have declined by US$1.48 per cwt over the last four weeks. The dressed (delivered basis) price for U.S. steers delivered to plants in the 5-area was reported at US$ per cwt last week, down US$2.26 per cwt or 1.2 per cent from US$ per cwt the previous week, but up 0.8 per cent from US$ per cwt the same week a year ago. The dressed price for U.S. steers in July declined by US$2.47 per cwt over the last four weeks. The last Cattle on Feed Report was released on Friday July 21, by the United States Department of Agriculture (USDA), for the July 1 inventory numbers. July 1, 2016 and 2017, Cattle on Feed (in U.S. feedlots with 1,000+ capacity) Per cent of previous year On feed June 1 10,804,000 11,096, Placed during June 1,525,000 1,770, Marketed during June 1,912,000 1,989, Other disappearance during June 61,000 56, On feed July 1 10,356,000 10,821, Source: USDA 3

4 The USDA Cattle on Feed (COF) report indicated that the number of cattle placed on feed in June 2017 was million head, up over 16 per cent from million head in June 2016, but down 16.5 per cent from million head placed in May The number of fed cattle marketed in June 2017 was million head, up four per cent from million head in June 2016, and up almost two per cent from million head marketed in May The June 2017 cattle placements of per cent compared to June 2016 were well above the average trade estimates (105.9 per cent). The cattle marketed in June of per cent were slightly below the average trade estimates (104.6 per cent). The USDA cattle on feed numbers for July 1, 2017 were million head, 4.5 per cent above the July 2016 inventory numbers of million head, but 2.5 per cent below the June 2017 numbers. The USDA numbers from July 2016 to July 2017 were per cent, almost two per cent higher than the average trade estimates (102.8 per cent). Both the higher June cattle placements and higher cattle on feed numbers for July 1 were above the average trade estimates and have helped push futures markets lower over the last week. Friday Price Information Product This Week (July 28, 2017) Week of: (June 30, 2017) Week of: (July 29, 2016) Canadian Dollar (closing rate US$) U.S. Cash Cattle Thurs. Feeder Cattle (FC) Index (US$ per cwt) Seven-day Weighted Average FC Index Wt. (lb.) Live Fed 5-area Steer Price (US$ per cwt) Feed Grains Barley Lethbridge ($/tonne) ($ per bu.) Corn Iowa State Average (CDN$/tonne)* (US$ per bu.) Futures Omaha, NE (CDN$/tonne)* (US$ per bu.) September Corn (US$ per bu.) 3.74 ¼ ½ December Corn (US$ per bu.) ¾ August Live Cattle (US$ per cwt) October Live Cattle (US$ per cwt) August Feeder Cattle (US$ per cwt) October Feeder Cattle (US$ per cwt) Sources: Bank of Canada, Iowa Department of Agriculture and Land Stewardship, Chicago Mercantile Exchange (CME), ICE Futures Canada and USDA Livestock & Grain Market News * conversion to CDN$ is based on Friday s CDN$ closing rate. 4

5 Beef production for the week ending July 29, 2017 was estimated at million lb., up 0.9 per cent from million lb. the previous week, and up 5.7 per cent from million lb. the same week a year ago. Cattle slaughtered over the week were estimated at 627,000 head, up 0.8 per cent from 622,000 head the previous week, and up 8.0 per cent from 581,000 head the same week a year ago. U.S. choice beef cutout prices ( lb.) averaged US$ per cwt over the week, down US$0.92 per cwt or 0.4 per cent from US$ per cwt the previous week, but up 4.1 per cent from US$ per cwt the same week a year ago. U.S. weekly average choice beef cutout prices have declined by US$43.90 per cwt or 17.5 per cent, since the weekly average peaked at US$ per cwt the week of June 17, United States beef exports for May 2017 were stronger than April and seasonally higher than the previous two Mays in 2016 and 2015; both in volume and dollar sales. United States exported 75,148 metric tons of beef in May 2017, up 3.9 per cent from 72,359 metric tons in April 2017, and up 3.8 per cent from 72,404 metric tons in May U.S. beef exports by volume for May 2017 versus 2016 were higher to Japan and Hong Kong; but lower to South Korea and Canada. Year-to-date, U.S. beef exports by volume were noticeably higher to Japan (+30%), South Korea (+13%) and Mexico (+8%). Source: U.S. Meat Export Federation Source: U.S. Meat Export Federation By dollar amount, U.S. beef exports in May 2017 were US$504.8 million, up 4.5 per cent from US$483.0 million in April 2017, and up 9.1 per cent from US$462.9 million in May (Source: U.S. Meat Export Federation) For more information contact: Brad Marceniuk, PAg. Provincial Livestock Economist brad.marceniuk@gov.sk.ca 5