FED CATTLE HIGHER
A weaker loonie and stronger Chicago fed cattle futures helped lift Canadian fed cattle prices.
Support also came from higher cattle prices in the northern United States. There is strong demand for Choice cattle partly because Walmart grocery operations are adding Choice to their store shelves and northern cattle are more likely to grade Choice than Texas cattle.
The Canfax weekly average for fed steers was $111.54, up $1.95 and heifers were $111.34, up $2.66.
Canadian feedlots are very current in their marketing.
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The cash-to-futures basis narrowed slightly to close at -$12.42.
Sales volumes totaled 15,047 for the week, up 52 percent from the previous week.
Indications that Japan will relax import regulations on North American beef, allowing products from animals under 30 months of age, cheered the market.
Market-ready supply will be tight for the next few weeks, supporting prices, but packers will resist because they have narrow margins.
COWS DOWN
D1, D2 slaughter cows fell almost $2 per cwt. and D3 cows fell $2.50 due to ample supply.
Dressed slaughter cow prices were $123-$128 down $2.
Butcher bulls fell for the tenth consecutive week to average $72.27 per cwt., down more than $10 from Sept. 1.
Weekly non-fed exports to Oct. 22 were down four percent to 2,988 head.
Ample supplies of non-fed cattle are anticipated through November and prices are expected to trend moderately lower.
VOLUME PRESSURES PRICE
The strong fall feeder run saw more than 100,000 head on offer pressuring prices lower.
Weighted average steer prices were $2.25 per cwt. lower and heifers were about $1.50 lower.
A heavy offering of 500-700 pound steers saw prices $2.50 lower and steers heavier than 700 lb. fell $2.
Light stocker heifers 300-500 lb. fell $2.75 and heifers heavier than 500 lb. dipped about $1.
Auction volume was up 21 percent at about 106,000 head, which could be the peak of the 2011 fall run.
CANADIAN BEEF RISES
U.S. beef cutout values were somewhat mixed with Choice trading about 75 cents lower. Choice closed Nov. 4 at $187.13 US per cwt. and Select was $169.75.
The Montreal wholesale market for delivery this week rose $1 to $203- $205 Cdn per cwt.
Weekly Canadian cutouts to Oct. 28 saw both AAA and AA cutouts trend more than $1.50 higher with AAA at $176.51 and AA at $167.16.
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.
