FED PRICES JUMP
Cash cattle prices were resilient in the face of worries about the global economy. Futures also held up well.
Canadian packers have good supply, but American packers were active in the Alberta market, attracted in part by the weaker Canadian dollar.
The Canfax steer average for the week jumped $5.05 to $110.73 per hundredweight and heifers rose $5.28 to $110.28.
Most of the week’s trade was reported on a live basis.
Market-ready numbers are falling, but the attractive prices caused some producers to increase marketing cattle that were ready.
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Sales totalled 18,711 head, down two percent from the previous week.
The week’s cash-to-futures basis narrowed slightly to -$17.37.
Weekly fed exports totalled 11,461 to Sept. 24, up eight percent from the previous week.
Canfax said Alberta packers have been aggressive securing fed cattle, indicating they are padding inventory further into the fourth quarter.
Fed supplies for October should be manageable.
With cut-out values steady and cattle prices rising, packer margins could narrow substantially.
COWS EDGE UP
D1, D2 cows ranged $64-$75 and averaged $68.81, up 27 cents. D3 ranged $55-$67 and averaged $61.50, up 33 cents.
Dressed prices firmed on the high end of the range to $131-$136.
Butcher bulls were steady.
Weekly non-fed exports to Sept. 24 were flat at 3,391 head.
Stronger fed prices should help keep non-fed prices steady.
FEEDER PRICES CLIMB
Stocker calf prices were generally $2-$3 higher. Middle weight feeders and yearling prices firmed $1-$2.
Feedlots are procuring as many heavy cattle as possible, but demand has been moderated by sluggish delivery of marketed fed cattle.
A moderate run of light stocker calves was reported at auction, but substantial volumes of 500-700 pound calves have yet to go to town.
Yearling volumes were light.
Auction volume was up 12 percent from the previous week but down 23 percent from the same week last year.
Volume is down 28 percent this year compared to last year.
Weekly feeder exports to Sept. 24 were up 88 percent from the previous week to 1,346 head.
More fall calves should start coming to auction over the next couple of weeks as harvest winds down and cow-calf pairs come off community pastures.
Strong interest from backgrounders and feedlots is expected to firm prices on stockers and feeder calves.
Good demand is anticipated for yearlings and supplies appear to be tightening.
U.S. BEEF CLIMBS
U.S. Choice cutouts were $184.41 US per cwt. Oct. 7, up $1.92 from the previous week, and Select was $169.58, up 24 cents.
The Montreal wholesale market for delivery this week was steady at $198-$200 Cdn.
Weekly Canadian cut-out values to Sept. 30 were mixed with AAA down 77 cents to $172.36 and AA up 59 cents to $165.62.
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 .
