FED CATTLE LOWER
Large volatility in cattle futures early in the week, driven by funds and speculators, pressured cash prices lower.
Feeder steers averaged $108.94 per hundredweight, down $1.79, and heifers were $108.56, down $1.72.
U.S. buyer inquiry was lighter and few cattle were sold to American packers. Live and dressed prices were comparable.
The cash-to-futures basis narrowed by more than $3 to -$14.22.
Sales volume of 16,286 head was down 13 percent from the previous week and six percent lower than last year.
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Weekly western Canadian fed cattle slaughter to Oct. 8 was 35,672 head, down 10 percent from the previous week.
Weekly fed exports to Oct. 1 were down 15 percent to 9,735 head.
Marketed fed cattle still have a three to four week delivery lag, but feedlot supply is dwindling.
Cattle futures are anticipated to soften this week but cash prices could hold firm because the basis should seasonally improve.
COW PRICES FALL
Packer interest slowed.
D1, D2 cows were $62-$73 to average $67.83 per cwt., down 98 cents.
D3 cows were $52-$66 to average $60.61. Rail bids were steady at $130- $135 per cwt. Butcher cows were generally $1 lower.
While D1, D2 cows are $13.38 higher than last year at this time, the average butcher bull price is only $8.96 higher and dipping lower.
Weekly non-fed exports to Oct. 1 totaled 3,218, down five percent from the previous week.
Prices might weaken because non-fed volumes are anticipated to grow over the coming weeks.
CALF PRICES RISE
The weaker Canadian dollar is supporting calf prices.
Short keep steers and heifers were steady while 400-600 pound calves rose by $2-$6.
Demand is unprecedented for light
calves. The 300-500 lb. average steer price has climbed $13-$14 over the past four weeks. As yearling volumes ease, many auctions have shifted attention to presorted and genetic influenced calf sales.
Auction volumes totalled 40,125, up two percent from the previous week.
Weekly feeder exports to Oct. 1 were only 510 head. Yearling marketings are becoming more regional, and quality and overall condition scores are dictating prices.
Calf prices have been elastic. Marketings are anticipated to surge over the coming weeks, limiting prices.
BEEF RISES
The U.S. Choice cutout on Oct. 14 was $185 US per cwt., up 59 cents from the previous week, and the Select was $166.98, down $2.60.
The spread between the two has increased rapidly in recent weeks and is exceptionally wide at $18.03. Part of the reason is that U.S. Wal-Mart stores are starting to add Choice beef cuts to their usual offering of Select.
Weekly Canadian cutouts to Oct. 7 generally rose $3 Cdn.
AAA and AA cutouts were $18-$21 higher than the same time last year.
Montreal wholesale for delivery this week was about $4 higher to $202-$204.
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.
