Fed supply tightens
A steadier Canadian dollar allowed the stronger U.S. fed cattle cash market to be reflected in Canadian prices last week.
The Canfax weighted average price on steers was $81.46 per hundredweight, up $3.65 compared to the previous week while heifers traded $2.70 higher to average $79.90.
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Rail prices were up $3.50-$4.50.
Sale volumes were 51 percent higher at slightly more than 18,000 head.
The cash to futures basis weakened slightly to $8.64 under from $8.30 under the week before.
Weekly fed export volumes were not available.
Market-ready supplies in Canada and the United States are tightening and the number of packer-owned cattle is declining. The economy is showing signs of improvement, which should lead to improved beef demand. As well, packers are preparing to meet the usual holiday season demand.
Lakeside Packers has restricted its operations recently because of water system repairs.
Seasonally large supplies pushed D1, 2 slaughter cow prices down by $1.60 to average $34.17, and D3 cows were 75 cents lower to average $30.44.
Butcher bulls averaged $44.86, down $1.25.
Canadian beef weaker
Canadian AAA cutouts for the week ending Oct. 16 fell $4.50 from the previous week and were $29.99 lower than last year.
AA cutouts fell $2.96 from the week before and were down $26.52 from last year.
The Montreal wholesale price for delivery this week was $2 lower at $161-$166.
The Alberta live steer price as a percent of Choice cutout was 56 percent, down 0.5 percent from the week before.
U.S. Choice cutouts rose $2.38 US per cwt. to close at $137.75 Oct. 22, and Select was up $1.38 to $133.34.
Fall run pressures feeders
Feeder cattle auction market volumes rose to about 81,000 head, up 29 percent from the week before with the fall calf run in full swing.
Cattle feeders were aggressive early in the week, but interest waned as feedlot current inventory backed up and there was nowhere for the cattle to go. This pressured prices lower, with steers down $2 per cwt. and heifers down $1.90.
The steady loonie and stronger Chicago cattle futures should support prices this week.
A light offering of bred cows saw prices averaging $595.25, up $19.75 from the week before.
The range was quoted at $350-$800.
