The Canfax weighted average weekly steer price was $100.03 per hundredweight, $2.88 higher, and heifers averaged $99.92, up $2.95 for the week ending Jan. 14.
Cattle futures jumped higher midweek on the U.S. Department of Agriculture’s crop supply and demand report, which slashed the outlook for year-end corn supply.
Most of the trade was dressed at $169.50-$169.85.
Sales volume of 15,677 head was steady with the previous week but 32 percent smaller than last year.
The rally pulled fed cattle forward and the show list was cleaned up. There was little interest from U.S. buyers.
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The cash to futures basis narrowed to -$8.82 compared to -$9.31 the previous week.
Weekly fed exports to Dec. 25 were 5,171 head, down 28 percent from the previous week, and down 26 percent from last year.
Canfax believes cattle futures climbed too high and will weaken as investors take profits.
Packer margins are in the red and they will likely slow slaughter to push beef higher and cattle lower.
COW PRICES RISE
D1, D2 cows rose $2.70 to reach $60.45 per cwt. D3 cows were steady, averaging $50.94.
Rail cow prices rose to $119-$123. Butcher bulls gained $3.50 to average $67.10.
Prices should be steady even if volume increases, given excellent lean trim demand.
FEEDER MOVEMENT SLOWS
Cold weather kept auction volumes weak at 11,243 head, down 62 percent compared to the same week last year.
The average steer price fell $1.18 per cwt. while heifers fell 72 cents.
Feedlots appear unwilling to place green feeders during cooler weather.
Heifers 600-800 pounds were steady while 700-800 lb. steers fell $2.
Quality is likely the variable because of smaller volumes at auction.
Heavier short-keep steers and heifers saw stronger prices.
Weekly feeder exports to Dec. 25 totalled 540 head, 44 percent lower than the previous week.
Producers are holding feeder calves, opting to add weight with surplus feed stocks.
Feeder prices should hold steady as buyers look for quality replacements.
BEEF PRICE CLIMBS
U.S. Choice cutouts closed up $2.70 US at $169 per cwt., and Select rose $4.18 to $164.76.
Weekly Canadian slaughter to Jan. 8 was 52,682 head, up 22 percent from the previous holiday shortened week but 14.5 percent smaller than last year.
Canadian AAA cutouts for the same week rose $1.80 to $158.41 and AA rose $2.71 to $155.60.
The Montreal wholesale price for delivery this week was steady to $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.
