Tight supply and stronger beef prices supported fed cattle prices.
The Canfax weighted average steer price for the week ending Oct. 15 was $91.13 per hundredweight, up $2.71, and heifers rose $3.13 to $91.20.
There were few live sales and most of the rail trade was at $150.75- $151.85 per cwt.
There was little U.S. interest.
Sales volume of 17,289 head was down 11 percent.
The cash to futures basis narrowed to
-$5.75 compared to -$8.61 the previous week. That is significantly below the four-year October average of -$13.19.
Read Also
Growth plates are instrumental in shaping a horse’s life
Young horse training plans and workloads must match their skeletal development. Failing to plan around growth plates can create lifelong physical problems.
U.S. fed export volumes for the week ending Oct. 10 were slightly less than 14,000 head.
Market-ready supply is expected to be tight, sustaining keen buyer interest. Stronger beef cutouts should boost packer margins and encourage them to bid.
FEWER CATTLE ON FEED
The number of cattle on feed in Alberta and Saskatchewan Oct. 1 was 684,275 head, down six percent from last year, and 13 percent lower than two years ago. It was the smallest October on-feed inventory since reporting began in 1999.
Placements in September were 273,587, down three percent from last year. Marketings were 175,240, up two percent.
The slow calf run and the large number of empty feedlot pens will have feedlots aggressively seeking calves. It will also keep projected Canadian marketings relatively tight into early 2011.
FEEDER PRICES RISE
Alberta auction volumes were steady with the previous week at 43,013, but that was down 32 percent from last year at the same time.
Average steer prices rose 71 cents per cwt. and heifers were 65 cents higher.
Calves 300–600 pounds showed the most strength, up mostly 50 cents-$1.50, and 900 lb. and heavier steers were up about $1. The remaining weight ranges were flat.
Feeder prices are running $15-$30 higher than last year.
Year-to-date auction volume of 1.387 million is down one percent from last year, but the Aug. 1-to-date volume is down almost 16 percent.
With harvest wrapping up, volumes are expected to increase, but calf sales are expected to drag out over a longer period this year, given ample feed supplies.
The 850 lb. feeder steer basis narrowed by about $2 to -35 cents. That compares to -$4.74 last year.
Canadian feed barley and wheat prices are not rising as fast as U.S. corn, giving Canadian cattle feeders an advantage.
Feeder calf prices will be well supported because auction volumes remain light and feedlots have a lot of empty pen space. The loonie is a wild card, however.
COWS MIXED
D1, D2 cows were $47-$62 to average $54.45, down $1.80.
D3 cows traded $46-$54 to average $50.50, $2.25 higher.
Rail cow prices softened $1 to $105- $110 with buyers waiting for larger numbers.
Butcher bulls were $58-$75 to average $66.69, down 47 cents.
More non-fed cattle are expected at market, which could lower prices.
BEEF STRONGER
U.S. Choice cutout rose to $153.24 US per cwt., up $1.26, while Select rose $1.83 to $146.44.
The Montreal wholesale price for delivery this week rose $1 to $182- $184 Cdn.
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.
