Fed cattle rise
Fed cattle prices rose $2.25-$2.50 per hundredweight, partly because of the stronger American dollar and packers procuring inventory before Christmas, although they bought less than expected.
Delivery remains out about three to four weeks.
Read Also
One Beer Market Updates Day 3 – Lentils and beef
Day 3 of the One Beer Market Update at Ag in Motion 2025.
The Canfax weighted average price for steers was $77.06 per cwt., up $2.54, and heifers rose $2.31 to $76.76.
Most fed sales were dressed, resulting in the Canfax weighted steer average being slightly higher than the live range. Rail prices generally were $3 higher. Sales volume rose four percent to about 17,500 head.
The cash to futures basis weakened to $10.08 under from $8.55 under the week before.
Weekly exports to Dec. 5 were 34 percent higher at 13,349 head. That was four percent higher than last year. Christmas and New Years fall on Fridays this year so packer slaughter during the period should see minimal disruption.
Market-ready inventory should moderate into the new year.
A smaller cash offering and a larger captive supply heading into 2010 will give buyers leverage.
Cows mixed
D1, D 2 cows averaged $35.88 per cwt., up 72 cents, while D3s fell $1.11 to average $29.61. Rail grade was $68 to $75. Strong interest for trim product is supporting cow prices.
Weekly cow slaughter to Dec. 12 was 16,447 head in Canada and 12,542 head in Alberta.
Butcher bulls were $38-$55.50 to average $45.91, steady with last week.
Feeder prices lower
Most auction markets have had their final sales until the new year. Extreme cold cancelled some northern Alberta sales.
Auction volume fell 17 percent to 37,634 head. In the year to date, volume is down three percent at just over two million head.
With a light offering, prices were mostly lower.
Plain types were discounted, but top quality and good condition feeders are still fetching premiums.
Heavier feeders were pressured lower by the lower fed market.
Feeder steers on average fell 85 cents and heifers were steady.
Weekly exports to Dec. 5 were 2,057 head, up from 968 the previous week but down from 11,086 last year.
Year to date, feeder exports of 270,085 are down 45 percent from last year’s total of 595,273.
The slightly better fed market could support a feeder price bounce.
In light trade, bred cows rose $97 to average $781.92, while bred heifers were $66 lower to average $905.53. Cow-calf pairs averaged $725, down $37.50. After special bred sales Dec. 19, offerings will be slim for the next few weeks.
Beef price falls
Weekly Canadian AAA cutouts to Dec. 11 fell 27 cents from the week before to $31.70, 18 percent lower than last year.
AA cutouts fell three cents, and were down $26.61 from last year.
Seasonally, cut-out prices rise through the holidays and into the new year. Retail beef margins continue strong and above average.
The Montreal wholesale price for delivery this week fell $3 to $153-$159. The Alberta live steer price was 51.88 percent of the Choice cutout, down 0.75 percent from the previous week.
U.S. Choice cutouts rose $3.98 US to close at $138.77 and Select rose $1.74, closing at $130.69.
