The Canfax weighted average for steers was $89.09 per hundredweight for the week ending Sept. 17, down 29 cents, and heifers were 85 cents lower to average $88.30.
Rail trade was 70-90 cents lower at $148.50-$148.85.
Alberta sale volume was 19,681 head, down 11 percent.
Most of the show list sold, even with the lower prices. U.S. interest was limited.
The cash-to-futures basis widened to -$12.50 compared to -$10.73 in the previous week.
Marketings are up 100,000 head over last year at the same time with most of the increase occurring May through August. This indicates feedlots have pulled a month’s worth of fed cattle forward.
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Fed prices normally hit an annual low in October-November. With anticipated moderate market-ready volumes for the remainder of September, prices could prematurely reach this year’s seasonal low.
Buyer interest could rise, despite lower seasonal beef demand.
COWS LOWER
Average D1, D2 cows traded in a range of $50-$61 per cwt. to average $55.30, down $1.66. Prices are still $14.78 higher than last year.
Dressed prices were $108-$113, down $2-$3.
D3 cows ranged $40-$53 to average $48.64, down $2.73.
Butcher bulls ranged from $58-$80 to average $72.47, up 49 cents.
A seasonally larger market volume and lower grind demand could see slaughter cow prices fall.
FEEDERS WEAKER
For the week, feeder steers fell $1.52 per cwt. while heifers fell 45 cents.
Most weight categories were down $1-$2 per cwt.
However, 600-700 pound steers and heifers rose with heifers up $1.95 and steers up 80 cents. Heifers 300- 400 lb. rose $1.97.
Prices are stronger than a year ago, with heavy feeders up $10 per cwt. and lighter calves up $17-$27.
Auction volume rose to 55,067 head, up 35 percent from the previous week but down four percent from a year ago.
The year-to-date auction volume of 1.22 million is up two percent from a year ago, but auction volumes in Alberta from July 1 to date are down 14 percent from a year ago because there have been fewer calves to move.
Wet weather in Western Canada is keeping the calves on pasture and increasing feed grain supplies.
Demand for calves will remain strong and volumes are not expected to pick up for another two weeks.
U.S. CATTLE ON FEED
American producers surprised markets by placing 7.1 percent more cattle into feedlots in August than a year ago. The trade expected a drop of 0.5 percent.
Traders had expected rising corn prices would discourage cattle feeding, but strong prices and exports encouraged feedlots to buy.
With the extra placements, the Sept. 1 feedlot inventory rose to 10.17 million head, up 2.8 percent from last year. Analysts expected a 1.1 percent increase.
BEEF LOWER
U.S. Choice cutouts were down $3.27 to close at $157.46 US per cwt. Select fell $3.05 to $151.24.
Canadian slaughter volumes for the week ending Sept. 11 fell six percent to 59,424 head.
Montreal wholesale prices for delivery this week were steady at $181-$183.
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.
