FED CATTLE DIP
The struggle continued between packers determined to pressure prices lower and feeders tightly holding cash cattle.
Packers had the edge last week, with the Canfax average steer price falling $1.28 to $104.27 per hundredweight and heifers falling $1.44 to average $103.42.
Most of trade was on a dressed basis at prices near the high end of the range. Sales volumes totalled 11,126, down 17 percent.
The cash to futures basis widened to -$5.04 from -$3.22 the previous week.
Weekly fed exports to Feb. 12 totalled 9,980 head.
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Packers will likely continue to pay just enough to procure cattle to meet their immediate needs, but tight cash cattle supply should limit the fall.
U.S. cash cattle set record highs last week, supported by a strong futures market, good beef exports and feeders willing to keep their gates closed if they don’t get the money they want.
COW PRICES RISE
D1, D2 cows rose 30 cents to average $69.59 per cwt. D3s rose $1.27 to average $59.83.
Rail cow prices were steady at $132-$135.
Good butcher bulls rose $1.83 to average $78.50.
Weekly non-fed slaughter exports to Feb. 12 rose 13 percent.
Exports are down 34 percent so far this year.
FEEDER PRICES RISE
The weekly Canfax average feeder steer price rose about 30 cents and heifers rose $1.50 per cwt., supported by strong U.S. feeder prices and the need to keep up with strong corn prices.
Steers 300-400 pounds held firm while 400-600 lb. dropped 45 cents.
Strong October live cattle futures helped 600-700 lb. steers rise $1.42 and 700-800 lb. were steady.
Steers 800 lb. and heavier rose 50 cents-$1.
Increased demand pushed 300-500 lb. heifers up $3 and 500-700 lb. $2 higher.
Heifers 700-900 lb. rose 50 cents and those heavier than 900 lb. were steady.
Auction volume totalled 34,886, down 15 percent from the previous week and down 26 percent from last year.
Weekly feeder exports to Feb. 12 were 2,592 head, more than double the previous week but 41 percent lower than last year.
So far feeder exports are down 29 percent.
Fourth quarter fed contracts are still profitable if costs of gain do not rise further, which supports middle weight feeders.
Stockers should see more demand as grass interest improves.
Auction volumes should increase because backgrounders are exhausting winter feed stock.
U.S. BEEF PRICE UP
U.S. packers successfully pushed Choice cutouts to $170.36 US per cwt. and Select rose to $169.81, both up $3.14.
Greater volatility in outside mar- kets and rising crude oil prices, which could curb consumer spending, might soon be reflected in the beef market.
Canadian weekly slaughter of 54,906 head to Feb. 19 was down three percent from the previous week and steady with year ago. Cut-out prices were unavailable.
Montreal wholesale prices for delivery this week fell $2 Cdn to $192-$194.
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.
