Fed cattle firm
Fed steers averaged $163.13 per hundredweight, down 37 cents, and fed heifers were $164.52, up $3.77.
Purchased cattle were being scheduled for slaughter during the first half of October.
Packers are mostly meeting their needs with contracted cattle, allowing them to become a bit more disciplined in their cash buying.
Prices are still about $44 per cwt. higher than last year at this time, but the cash-to-cash and cash-to-futures basis levels have weakened, moving closer in line with historical levels.
Over the past couple of weeks, western Canadian fed steer prices have fetched a $5-$10 per cwt. premium over Ontario prices.
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Weekly fed exports to Aug. 30 totalled 9,055 head, the most since mid-May. Most of those heading south are forward contracted or formula priced.
Procurement will be hand to mouth, and packers will have to manage kill levels to keep cooler inventories from backing up.
Fed prices this week could edge lower but trade in a tight range.
Cows steady
D1, D2 cows ranged $118-$132 per cwt. to average $124.13, while D3s ranged $102-$120 to average $111.70.
Rail grade cows ranged $235-$240.
Alberta slaughter bulls were $137.33, down $2.08 per cwt.
Western Canadian non-fed slaughter to Sept. 6 fell 11 percent to 4,627 head. Prices will likely edge lower as demand for hamburger seasonally softens.
Feeders stronger
Early special feeder sales and strong prices attracted many feeders to market, but prices rose sharply.
Quality calves in Alberta saw strong interest, and calves lighter than 400 pounds soared $18-$20 per cwt.
Feeders 500-700 lb. rose $2.25-$3.25. Feeders heavier than 700 lb. surged $6-$10 higher.
Eastern buyer interest and American demand enhanced competition for larger steer calves.
The Chicago feeder futures market notched a new record high Sept. 9, partly on falling corn prices that will enhance the profitability of feeding cattle.
Weekly Alberta auction volume soared about 160 percent to 59,182 head, which was 25 percent larger than the same week last year.
Auction volume is up five percent this year at 865,803 head.
Weekly exports to Aug. 30 rose 68 percent to 5,873.
Exports are up 40 percent this year at 249,606 head.
Auction volume this week will likely be smaller and remain so until the fall calf run.
Strong local demand is anticipated for light calves that can be backgrounded into the new year in the hope of reaping even better returns.
Interest from Eastern Canada and the United States will support prices for all feeders, and larger lots are expected to command premiums.
Beef prices rise
U.S. Choice closed the week up $3.42 at $251.54 US per cwt. Select was up $1.66 at $236.35.
End meats that enjoyed a tremendous run from May to July came down in the past few weeks but may pick up again with cooler weather approaching.
Canadian cut-out values for the week ending Sept. 6 were unavailable.
This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattlemen’s Association. More market information, analysis and statistics are available by becoming a Canfax subscriber by calling 403-275-5110 or at www.canfax.ca.
