Fed steers were pressured lower this week due to a larger captive supply and larger cash offerings.
For the week, steers averaged $78.38 per hundredweight, down 90 cents and heifers averaged $78.13, up 40 cents.
The steer price range was $76.45-$78.50 and $131.50-$132.85 on the rail, while heifers traded $75.70-$77.90 and $131.50-$132.85 on the rail.
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Most heifers traded as dressed sales, resulting in the Canfax weighted average being higher than the live price.
The cash to cash basis weakened to $8.13 under from $7.25 under the previous week.
The loonie rose but cattle still moved to the U.S. at prices not much better than local bids. The incentive was lift times that were earlier than Canadian packers.
Overall, 23,112 sold, leaving a moderate carryover.
Weekly steer slaughter to Jan. 9 in Alberta was 47,466 head, up 29 percent from the previous week and 13 percent larger than the same week last year.
Fed exports to the U.S. in 2009 totalled 543,078 head, down 20 percent from 681,312 from a year ago.
Stronger beef cutouts are expected to stabilize but not lift fed cattle prices. The higher Canadian dollar will continue to pressure fed cattle prices.
Tight post-holiday non-fed packer supply improved slaughter cow prices attracting more cattle to market.
D1, D2 slaughter cows rose 90 cents per cwt. to average $43.36. D3s rose 70 cents to average $37.47.
Rail grade cows were $75 to $82.
Butcher bulls rose $1.65 higher to average $49.97.
Large, non-fed packer inventory could pressure rail prices $3-$5 lower this week.
Stronger slaughter cow prices lifted bred cow prices, with the average now up $52.25 over last year.
Bred heifers saw strong demand to average $1,050 per head, $325 higher than this week last year.
Cow-calf pair volumes were too light to report.
The warm weather attracted more feeder cattle to market.
Auction volumes jumped to 29,368 head more than double the previous week and 48 percent more than last year.
There was good buyer interest with feedlots trying to replace marketed fed cattle.
Steer prices averaged $1.12 per cwt. higher and heifer prices were up $2.66.
Steers 300-400 lb. rose $3 with good demand and tight supply, while 400-500 lb. traded mostly steady.
Compared to this week last year, 300-500 lb. steers are $7-$9 higher thanks to strong buyer interest and attractive fourth quarter live cattle futures.
Steers 500-600 lb. with grass potential rose 40 cents per cwt. Steers 700-800 lb. will go to market during the June-July market glut and so prices fell about $1.
Steers heavier than 900 lb. that can be finished by the end of the first quarter saw good demand and rose $3.40.
Heifers 300-400 lb. and 400-500 lb. jumped $6.25 and $4.20 respectively. These light heifers have grass potential, and longer term could hit a lucrative fourth quarter fed market.
Heifers 500-700 lb. rose $1-$1.70.
Heifers 700-900 lb., if placed on full feed, run the risk of hitting the mid-summer doldrum market. They rose $2.25-$2.50. There may be interest in breeding them as replacements this summer.
Heifers heavier than 900 lb. with a target second quarter market rose 60 cents.
Speculative backgrounders with alternative feeds who bought feeders are faced with dwindling feedstocks after the December cold snap and will be moving cattle to town.
Interest in feeders that fit second and fourth quarter fed markets will remain strong. Feeders 700-800 lb. will likely see softer buyer interest.
Interest in grass types should maintain demand for light feeders under 700 lb. until early spring.
U.S. beef Choice cutouts rose $4.45 to close at $145.19 US and Select rose $4.68 to $139.92.
Weekly Canadian AAA cutouts to Jan. 8 rose 95 cents from the previous week and were $27.91 or 16 percent lower than last year. AA cutouts rose 81 cents from the week before and were $27.30 lower than last year.
AAA beef cutouts should trend seasonally higher toward the second quarter.
The Montreal wholesale market for delivery this week was $155-$161.
