FED PRICES OFF PEAK
After the strong rally in the last week of 2010, cash cattle prices edged lower in the first week of 2011.
The Canfax weighted average steer price was $97.15 per hundredweight, down 78 cents, and heifers were $96.97, down 79 cents, for the week ending Jan. 7.
Rail prices were mostly $1-$2 lower for the week.
Feedlots are fairly current in marketing. There was little interest from U.S. packers.
Sales volume fell to 15,680 head, 13.5 percent lower than last week.
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The cash to futures basis widened to -$9.31 from -$9.20 the week before and -$8.47 the week ending Dec. 24.
The basis has widened almost $4 in five weeks.
The five-year average cash to futures basis for January is -$15.06.
Weekly fed exports to Dec. 18 were 7,186 head, up two percent from the previous week, but 28 percent lower than last year.
January tends to be sluggish for beef and cattle markets as consumers retreat from holiday feasting.
Canadian and U.S. slaughter is down as packers manage poor margins. Market ready numbers are starting to pick up, especially in the United States.
Cash fed prices likely will face pressure but remain much higher than in recent history.
COW PRICES CLIMB
Excellent demand for lean trim propelled D1, D2 cows up by $2.25 per cwt. to average $57.75, while D3 cows held mostly steady to average $50.83.
Rail prices rallied to $117-$122. Butcher bulls traded steady to average $63.60 per cwt.
Weekly non-fed slaughter exports to Dec. 18 were 4,723, down 11 percent compared to the previous week.
A flush of slaughter cows may come to market in January. Demand should continue to exceed supply.
FEEDERS STRONGER
In slow trade, feeder prices were generally higher than at the end of December.
The average steer price was $5.34 per cwt. higher than the week ending Dec. 24, and heifers were $2.70 higher.
There was strong interest in stocker steers lighter than 600 lb. Steers 600-800 lb. rose $2 per cwt. and steers heavier than 900 lb. were also significantly higher.
Heifers 300-400 lb. were higher and 400-600 lb. were up $3.50. Heifers heavier than 600 lb. climbed $1-$1.50 but 800-900 lb. fell 40 cents.
Auction volume totalled 4,686 head, down 56 percent from last year.
Weekly feeder exports to Dec. 18 totalled 966 head, down 35 percent from last year.
Feeder volumes are expected to climb a little but remain moderate, and cattle futures should be supportive.
As January fed marketings increase, the demand for bunk replacements could strengthen.
BEEF CUTOUTS RISE
U.S. Choice cutouts closed at $166.30 US per cwt., up $3.11. Select was $160.58, up $3.39.
Weekly Canadian slaughter to Jan. 1 was down 14 percent from the previous week at 43,230 head, one percent smaller than last year.
Canadian AAA cutout values to Dec. 24 were $158.26 per cwt., up $2.14 from the previous week.
AA cutouts were $154.64, up 87 cents.
The Montreal wholesale price for delivery this week was steady at $187-$189.
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.
