Rail prices held steady, but the weekly live average dropped $1-$1.50 per hundredweight last week.
The Canfax weighted average price for steers was $79.26 per cwt., down 95 cents from the previous week, and heifers traded $1.55 lower to average $76.76. All of the show list sold, resulting in no carryover.
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Sale volumes were one percent larger than the week before at 22,476 head.
Some short-fed cattle were noted in the mix and fetched lower bids.
Packer-captive cattle made up a large part of the show list, but buyer interest was strong and active trade developed midweek.
The cash to futures basis strengthened slightly to $9.58 under compared to $9.74 under last week.
Weekly exports to Dec. 26 were 30 percent lower than the previous week at 7,432 head but were one percent higher than last year at the same time.
Fed exports to the United States for the year to Dec. 26 totalled 538,820 head, down 20 percent from the same period in 2008.
Local buying interest this week is not expected to be strong, but tighter U.S. beef stocks and cold weather affecting cattle performance should encourage American buyers to show strong interest in Canadian cattle.
Lower placements in the last quarter of 2009 should tighten fed supply for the next couple of months, but poor beef demand will continue to be the major marketing hurdle.
Packers appear to be scrounging for cows, and with strong demand for trim product, cow prices increased to $42.46, up almost $5 from the Dec. 24 average.
Rail grade cows were $76 to $86.
Weekly cow slaughter to Jan. 2 was 9,186 head in Canada and 7,773 head in Alberta. Butcher bulls were $40-$56 to average $48.33.
The recent holidays and cold weather in the U.S. have tightened beef supply.
Choice cutouts were up $1.99 US to close at $140.74 and Select cutouts were up $2.21 to close at $135.24.
Canadian AAA cutouts for the week ending Jan. 1 were $4.61 Cdn lower than the previous week and $30.48 lower than this week last year.
AA cutouts were $4.04 lower than the previous week and $28.81 lower than the same period last year.
Retailers will likely start featuring beef heavily now that the holiday season is over.
Auction market volume was slow as it normally is at the beginning of the year.
Sales totalled 8,648 head compared to 10,060 head last year. There was good buyer interest and strong demand for quality cattle.
Prices in most weight classes were $1-$8 higher.
The exception was steers and heifers heavier than 900 pounds, which were down $2.75-$3.25.
Weekly feeder exports to the U.S. to Dec. 26 were 436 head compared to 1,433 head the previous week and 1,005 head last year.
Year to date, exports were 273,641 head, down 55 percent from 2008.
Canfax said there is optimism looking ahead into 2010 with a smaller cow herd and the expectation of economic recovery.
Bred cattle trade was limited with prices slightly lower than the last reported sales in 2009.
Bred cow prices were $400-$910 to average $678.33, and bred heifers traded from $450-$630 to average $540.
