Feeder price drops
Feeders wanted to move heavy cattle and accepted lower prices last week.
The Canfax weighted average price for steers last week was $81.90 per hundredweight, down $2 while heifers traded $2.20 lower to average $81.45.
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Rail prices were almost $4 per cwt. lower. Steer carcass weights are at a record.
JBS Swift in Greeley, Colorado, is once again bidding on fed cattle in the western Prairies.
Sale volume was steady at about 14,500 head. However, lower prices resulted in almost 15 percent of the show list being passed.
The cash to futures basis weakened to $10.04 under from $6.36 under the week before.
Fed exports to the United States for the week ending Oct. 24 totalled 9,532 head, down 10 percent from the week before and down 34 percent from last year.
Canadian fed cattle look attractive to American buyers who are faced with tighter supply and feedlots that are holding out for higher prices.
The Canadian live steer price as a percent of the Choice cut-out value was 1.32 percent lower than the week before and could help lift prices by a dollar or more this week.
Packers are increasing cow kill, supporting prices.
D1, D2 cows rose 25 cents to average $34.17. D3 cows fell 10 cents to average $29.84.
Butcher bulls were steady, averaging $44.13
Feeder prices rally
Feeder cattle prices and auction market volumes rose last week.
Auction volumes increased 16 percent from the week before to about 85,000 head. Many auctions reported special sales helping to increase volume levels.
There was price variation between first, second, and third-cut calves. Desirable coat colour, condition and quality are bringing premiums.
Prices for the week were up 85 cents per cwt. for steers and $1.55 for heifers.
Feeder cattle exports for the week ending Oct. 24 were 4,227 head, up from 2,363 the previous week but down from 11,712 last year.
Feedlots are continuing their aggressive pace to place cattle. Auction market volumes should be steady.
In a small offering, bred cows were $350-$800 with an average of $558 and bred heifers were $450-$650 with an average of $550.
Prices are depressed for bred cattle and offerings could be limited.
Beef prices higher
U.S. beef cutouts were firm on light to moderate demand and offerings.
Choice cutouts rose 17 cents to close at $141.33 US and Select fell 24 cents to close Nov. 5 at $135.76.
Choice cutouts were $7.70 lower than this week last year and Select cutouts were $5.58 lower.
Rib items have moved higher as it gets closer to the holiday season. Lean boneless prices were firm to higher on moderate to heavy offerings.
American Thanksgiving is approaching and that will start to hurt beef demand as holiday turkeys and hams dominate meals.
Canadian AAA cutouts for the week ending Oct. 30 rose $2.74 from the previous week. They were $28.46 lower than last year.
AA cutouts were $2.85 higher than the previous week and compared to the same period last year were $26.15 lower.
The Montreal wholesale market for delivery this week was $6 higher at $166-$172.
