Fed cattle lower
The Canfax weighted average steer price was $161.81 per hundredweight last week, down $1.61. The heifer average was not available.
There was little competition in Alberta because packers own about two to three weeks of supply.
Western Canadian fed slaughter volumes have been consistent in recent weeks at 36,000 head, with the exception of the Labour Day week.
American packers made some purchases at prices comparable with local sales.
The Alberta cash-to-futures basis weakened, closing at -$11.07.
Weekly basis levels are comparable to levels seen in 2008.
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There are reports of increased contract volumes from September to October, which could keep basis levels in line with the five-year average of -$11.84.
Weekly exports to Sept. 13 totalled 7,176 head, up 40 percent over last year at the same time.
Market-ready numbers are usually higher in September and October before dropping off in the last two months of the year.
Timely marketings will be critical in October to handle the nearby cattle inventory and allow the market to strengthen at the end of the year.
The weaker Canadian dollar and strong live cattle futures support the cash market.
Cows little changed
D1, D2 cows ranged $115-$133 per cwt. to average $123.40, up 30 cents over the week. D3 cows ranged $100-$120 to average $110.08.
Rail cow bids were steady at $235-$240 delivered.
Butcher bulls were $139.50 per cwt., up 56 cents.
Weekly western Canadian non-fed slaughter to Sept. 20 was steady at 5,229 head.
Weekly exports to Sept. 13 fell five percent to 6,748 head.
Feeders rise
A good seasonal volume of calves and feeders were offered.
Strong North American buyer interest fuelled competition, and prices were well supported, with the average rising $2.50 per cwt.
Calves lighter than 700 pounds generally saw prices $1-$1.50 higher, and 700-800 lb. calves were mostly steady.
All large feeders rose $2.50-$2.75, except for heifers heavier than 900 lb.
The weekly Alberta auction volume fell six percent to 35,458 head, but that was 14 percent larger than the same week last year.
Weekly Canadian exports to Sept. 13 rose 65 percent to 9,839 head. This export surge also occurred on the same week in 2013.
To date, feeder exports are 38 percent larger than last year at 265,415 head.
Chicago feeder futures hit new record highs.
Auction volumes should increase as harvest starts to wind up.
Large fall show lists could be tempered by an increased number of feeders trading on a private basis and a large volume of feeders that were forward sold early.
Cow-calf pairs traded at $1,900-$2,775.
U.S. beef lower
U.S. boxed beef prices fell as packers tried to clear inventories at discounted prices.
Choice was down US $5.77 at $239.11 per cwt., and Select fell $6.75 to $225.34.
Weekly U.S. slaughter was estimated at 572,000 head, up .2 percent from a week ago but down 8.5 percent from last year.
Weekly Canadian cut-out values to Sept. 13 saw AAA up C $4.45 at $262.10 per cwt. and AA rise $2.95 to $253.10.
The AAA-Choice spread was wide at -$15.28 compared to -$11.62 the previous week and -$3.11 last year.
Montreal wholesale prices held steady at $292-$294 per cwt.
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.
