Fed cattle slightly higher
The falling Canadian dollar had less impact than expected and fed cattle bids improved only a little.
Canfax’s weighted average price for steers last week was $78.83 per hundredweight, up 45 cents from the previous week, while heifers were steady at $78.11.
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Alberta rail grade steers were $129 to $131.85 per cwt. and heifers were $129 to $132.70.
A wider range in the live price reflected pen clean-up on a moderate volume of yearlings.
Volume traded was 19,570, down 15 percent from the week before because some cattle were passed due to disappointing bids.
The cash to futures basis weakened to $12.41 under compared to $10.25 under the week before.
Weekly exports to the United States to Jan. 9 were 9,609 head, six percent less than the same week last year.
Cold weather in the United States is delaying weight gain and the large marketings expected in the first quarter might be pushed back.
This is positive for the short-term Canadian market, but pushing cattle into the second quarter could dampen a possible spring fed cattle rally.
The cow market fell because of increased auction volume. Some markets firmed at week’s end.
D1, 2 cows were $34-$49.75 per cwt., averaging $42.14 and down $1.25 from the week before. D3 cows were $30-$43, averaging $37.03 and down 45 cents. Rail grade prices were $75-$82.
Cow slaughter for the week ending Jan. 16 was 13,225 head in Canada and 9,624 head in Alberta.
Butcher bulls were $41-$60.75 to average $50.96, up $1 from the previous week.
Beef prices drop
U.S. Choice cutouts fell $1.31 US to close at $143.88, and Select fell 12 cents to $139.80. Last year, U.S. cutouts fell through February.
Choice cutouts were $5.77 lower than last year and Select cutouts were $3.74 lower.
Canadian AAA cutouts for the week ending Jan. 15 were 51 cents Cdn higher than the previous week and $28.94, or 17 percent, lower than last year. AA cutouts were $1.48 higher from the week before and $28.37 lower than last year. AAA middle cutouts were steady but should start to trend seasonally higher.
The Montreal wholesale market for delivery this week was $163-$165.
Feeder prices rise
January volumes have been larger than last year and prices have improved.
Auction volumes for the week were 41,966 head, up 43 percent from the week before and 29 percent larger than last year. Steers averaged $1.57 higher and heifers rose 26 cents.
The largest increase was for 500-700 pound steers, up $2.25-$3.35.
Heifer gains were moderate compared to steers.
Weekly feeder exports to the United States to Jan. 9 were 449 head compared to 3,158 head last year.
Auction market volumes should continue strong as producers take stock of their feed supply and prices trade higher,.
Bred cows firmed in thin trade. Prices were $450-$900 with an average of $694. Bred cow trade will likely pick up because of the dwindling feed situation. Too few bred heifers traded to quote.
