Fed cattle prices again surprised the market by rising.
The Canfax weighted average steer price was $98.04 per hundredweight, up 30 cents, and heifers were $97.79, up 50 cents for the week ending Dec. 3.
Sales volume of 17,413 was almost 10 percent higher than the previous week. However, that was down 17 percent from last year.
The strong fed market has flushed out short fed yearlings, which may still need more days on feed.
There was little U.S. buyer interest.
The cash to futures basis was flat at -$5.42 compared to -$5.44 the previous week.
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Weekly fed exports to Nov. 20 at 8,483 head were down 13 percent from the previous week and 28 percent lower than last year.
Packers have enough inventory to fill holiday orders. Fed prices may have peaked and may trend slightly lower.
COW PRICES RISE
Slaughter cows saw strong demand this week on a seasonally tight supply.
D1, D2 cows rose $1.39 per cwt. to average $54.30, and D3 cows rose 76 cents to average $49.04.
Rail cow prices rose to $105-$110 per cwt.
Butcher bulls fell $1.57 to average $60.53. Bull supply appears to be tight.
Weekly non-fed slaughter exports to Nov. 20 rose five percent from the previous week.
FEEDERS UP ON DEMAND
Feeder prices surged higher on strong demand. Volume increased as the weather warmed.
The average steer price rose $1.06 per cwt. and heifers climbed $1.71.
However, steers lighter than 400 pounds fell $1.99.
Steers weighing 400-800 lb. saw keen interest and prices rose $1.25- $1.75.
Steers heavier than 900 lb. surged $2.50.
Light heifers rose $1.20, 400-700 lb. climbed $1.75-$2, 700-800 lb. jumped more than $3, 800-900 lb. rose $1.74 and those heavier than 900 lb. were mostly steady.
Auction volume of 76,798 head was up 66 percent from the previous week and 37 percent higher than last year.
Weekly feeder exports to the United States to Nov. 20 totalled 1,471 head, two percent higher than the previous week, and 17 percent higher than this week last year.
Western Canadian auctions will move full swing into bred seedstock sales this week, and feeder volumes will likely moderate.
Strong buyer interest and end of year buying for tax reasons should hold prices firm.
BRED COWS STRONG
Bred cow prices were $700-$1,400, while bred heifers were $950-$1,475.
A basic slaughter value of $50-$60 per cwt. is supporting prices.
Cow-calf pairs are being split and sold separately with light price reporting.
BEEF PRICES RISE
U.S. cutouts moved higher on holiday demand.
Choice rose $2.36 to $163.46 US per cwt. and Select climbed $2.03 to $153.59.
Cutouts are 16 to 19 percent higher than year ago levels. That, combined with total U.S. slaughter up 2.5 percent year to date, indicates stronger demand for fed cattle in 2010.
Weekly Canadian slaughter to Nov. 27 at 59,054 head was down 3.7 percent from the previous week and down 12.9 percent from a year ago.
Steer carcass weights were 858 lb., down 22 lb. from last year, which will significantly tighten beef supplies in the coming weeks.
Canadian AAA cutouts were $156.72 Cdn, up $3.07, while the AA cutout was $153.83, up $2.59.
Cutouts are eight to nine percent higher than year ago levels.
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.
