The Canfax weighted average steer price was $95.45 per hundredweight, up $4.32, and heifers were $95.13, up $3.93.
Lots of things went right for the Canadian market as the dollar backed off from six-month highs, the live cattle futures markets hit contract highs and cut-out values strengthened.
Since the spring high in April, fed cattle prices have been more closely following the trend of 1998-2002 than the latest four-year average trend.
The cash to futures basis widened to -$8.48 compared to -$5.75 a week ago.
Sales volume dropped to 16,253 head, down six percent.
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Market ready cattle supplies will continue to be tight. Boxed beef prices should be supported with the strong exports and North American buyer interest.
COW PRICES DIP
D1, D2 cows were $45-$63.25 to average $53.21, down $1.24.
Dressed cow prices slipped to $103- $107.
D3 cows fell $2.35 to average $48.15. Butcher bulls were $50-$77 to average $64.80, down $1.89.
Year-to-date non-fed exports were 168,942, up 11 percent from last year.
FEEDER CATTLE RISE
Volume rose, but steer average prices rose 62 cents and heifers rose $1.
Light stockers were mostly steady while mid-weight feeders saw strong demand and prices $1-$1.50 stronger.
Yearlings traded steady to slightly higher.
Wide price spreads within ranges reflect quality as well as calves and yearlings in the same weight ranges.
Auction volumes of 71,687 head were up 67 percent on the week but 11 percent lower than last year.
Feeder exports year-to-date are 174,791, down 29 percent.
With harvest over, volume should rise but strong demand should be able to hold prices steady.
BEEF SURGES HIGHER
U.S. Choice cutouts rose to $160.61 US per cwt., up $7.37 from the week before and $22.86 higher than last year. Select cutouts were $153.97, up $7.53.
Weekly Canadian slaughter volumes to Oct. 16 at 56,202 were down 11 percent from the week before but almost eight percent higher than last year.
Beef retail margins are good and aggressive retail featuring may help stimulate movement.
The Montreal wholesale for delivery this week was $2 higher at $184- $186. That was lagging behind the recent live rally.
U.S. CATTLE ON FEED
The number of cattle being fattened in U.S. feedlots last month was up three percent from a year earlier, as expected, while cattle marketings were up two percent, also as expected.
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.
