FED MARKET LOWER
Packers were not eager buyers and feedlots did not want to sell into a falling market, resulting in a large carry-over.
The sharply stronger loonie contributed to the weak market and only light U.S. interest.
The Canfax weekly steer average fell 65 cents to $109.50 per hundred-w e i g ht and heifers fell $1.69 to $108.68.
Most of the trade sold dressed at around $184 per cwt. delivered.
The cash-to-futures basis narrowed 50 cents to -$13.27.
Sale volume was 9,892 head, down 53 percent from the previous week and 42 percent lower than last year.
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Weekly western Canadian fed slaughter to Oct. 22 was 34,459 head, down two percent. Slaughter is down 12 percent this year.
Weekly fed exports to Oct. 15 rose almost 18 percent to 10,105 head.
There was increased carryover into this week but the overall supply is not a burden.
Packers are slowing slaughter to try to pressure beef higher to improve their margins. This could result in light trade this week, with mostly steady prices if disciplined packers opt to draw down captive inventory.
Supplies are expected to tighten significantly in the fourth quarter as smaller placements from the first quarter, which were down 20.5 percent, come to market.
Fed supplies will increase in the first quarter of 2012 but still be below year ago levels because placements from May through August were down four percent from 2010.
NON-FED PRICES FALL
Non-fed cattle faced seasonal downward pressure.
D1, D2 cows have slipped below $67 per cwt. for the first time since February to average $66.19.
Leaner D3 cows traded nearly $1.50 lower to average $58.61.
Rail bids fell to $125-$130 per cwt.
Butcher bulls fell for the ninth week.
Weekly non-fed exports to Oct. 15 totalled 2,960 head.
FEEDER AVERAGES RISE
Prices held up well despite a heavy fall run, but slight pressure was noted in some markets at week’s end.
Mid-weight steers and heifers traded steady, while short keep feeders were slightly higher.
Feeder steers rose $1.36 per cwt. and heifers climbed $1.67.
Eastern Canadians were active buyers.
Speculation on light steers and heifers that could potentially enter a grass market pushed prices up $2-$4.
Auction volume totalled 87,124 head, up 30 percent from the previous week.
Weekly feeder exports to Oct. 15 were only 453 head.
With the stronger loonie, feeder prices could struggle to hold ground. Strong domestic calf prices and a par currency could lead to imports of U.S. feeders.
BEEF HIGHER
U.S. cutouts were $2 stronger on moderate demand and a light offering. Choice was $188.10 US per cwt. Oct. 28 and Select was $169.13.
Wholesalers are beginning to stock up for the holiday season.
Canadian cutouts for the week ending Oct. 21 traded slightly higher. AAA was $174.83 Cdn and AA $165.39.
Montreal wholesale for delivery this week was steady at $202-$204 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.
