FED PRICES RISE
The fed steer weekly average was $114.35 per hundredweight, up $1.77, and heifers were $113.82, up $1.66.
The stronger U.S. cash market and weaker Canadian dollar encouraged buying interest from the United States.
Open cash offering accounted for a third of the list, and the Alberta-Saskatchewan show list volumes were the smallest since the end of March.
Sale volume totalled 13,420 head, down 10 percent from the previous week.
The cash-to-futures basis narrowed to -$10.18.
The tight supply of market-ready cattle in Canada has driven prices beyond packers’ comfort level. They might try to slow kill and use more non-fed cattle in the mix to reduce the demand and price of fed cattle.
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Supply could increase a little in coming weeks as early placed yearlings are offered.
COW PRICES RISE
Slaughter cow volume increased, but demand kept pace.
D1, D2 cows were $60-$71 per cwt. to average $64.30, up 52 cents. D3 cows averaged $56.80, up $1.
Rail grade prices were steady at $123-$128.
Butcher bulls rose to average $72.68.
Weekly exports to Nov. 5 rose 15 percent to 4,442 head.
Special bred cow sales through December will add a little to the cow kill, but volumes should start to tighten seasonally, supporting prices.
FEEDER CATTLE LOWER
Stocker and feeder prices generally eased 60 cents per cwt.
Steers up to 700 pounds fell 50 cents-$1.75 while steers heavier than 700 lb. saw good demand and steady prices.
Heifers lighter than 600 lb. fell $1-$2.50 and those heavier than 600 lb. were mostly steady.
Good buyer interest on a tight supply of heifers heavier than 900 lb. pushed prices $1.50 higher.
Feeder supply should be ample this week and might include early weaned calves. Year end tax spending should help support the market.
Bred cow volumes increased enough to establish a price trend.
Bred cows at auction were $1,000-$1,600 per head. Bred heifers were $1,250-$1,600.
Cow-calf pair volumes are dwindling as strong stocker prices encourage splitting and selling the pair separately.
BEEF PRICE STRONGER
The reduced slaughter in the U.S. last week had the desired effect, pushing beef cutouts up $5 and helping packer margins.
The Montreal wholesale price for delivery this week was expected to rise $2 to $207-209.
Weekly Canadian cutouts to Nov. 11 rose almost $1.50 on AAA and climbed $2.25 on AA.
U.S. CATTLE ON FEED
The U.S. November cattle-on-feed report pegged October placements down nearly one percent from the previous year at 2.491 million head. The extreme drought in the south has reduced cattle numbers.
The total number of cattle on feed was up four percent from a year ago year at 11.924 million head.
The numbers matched trade expectations.
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 .
