FED MARKET RISES
Strong cattle futures, strong U.S. cash prices and a loonie near 98 cents US helped support Canadian fed cattle prices last week, Canfax said.
Packers struggled with negative margins, but trade developed at higher prices by midweek. Fed steers averaged $112.58 per hundredweight, up $1.13, and heifers averaged $112.16, up 82 cents.
Most sold on the rail at $188-$190 per cwt. delivered.
The cash-to-futures basis widened 50 cents to -$12.91.
Sale volume was 14,878 head, down one percent from the previous week.
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Weekly fed exports to Oct. 29 rose 11 percent to 12,669 head.
Summer-placed yearlings have performed well and are now entering the November market.
COWS EDGE HIGHER
Higher yielding packages of D1, D2 cows tested the top end of the Canfax price range.
D1, D2 cows were $60-$70 to average $63.78.
Rail bids were $125-$130 cwt.
Butcher bulls fell 50 cents to $72 cwt.
Speculation that nonfed values are approaching seasonal lows supported feeder cow values.
FEEDERS STEADY
Short keep steers traded generally $1 higher while heifer calves were steady.
The steer price average last week fell 14 cents and heifers rose 37 cents.
Commercial auctions are operating sales six days per week across Alberta and Saskatchewan. Large uniform packages of feeders are commanding a premium.
Light calves are trading $36-$45 per cwt. higher than last year.
Volume was 75,764, down 28 percent from the previous week. Nov. 9 sales will be included in next week’s report.
Weekly feeder exports to Oct. 29 totalled 971, up 20 percent from the previous week.
Contracting options have provided underlying price support.
Price resistance is anticipated as cost of gain narrows feeding margins.
Prices of 300-500 pound steers might fall to narrow the steer-heifer price gap.
Mid-weight steers and heifers are likely to hold price momentum, and demand for yearling cattle should remain strong.
BEEF STRONGER
U.S. cutouts were generally $2 higher last week.
Packers are attempting to push beef prices higher to mend processing margins, but resistance at the retail level is slowing the beef pipeline.
Canadian cutouts to Nov. 4 were $2-$3 higher than the previous week. AAA was $179.96 and AA was $169.73.
The Montreal wholesale for delivery this week was up $2 at $205-$207 per cwt.
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.
