Fed cattle rise
The weekly fed steer weighted average rose $3.11 to $142.44 per hundredweight, and heifers climbed $3.43 to $141.42.
Tight supplies and rebounding cattle futures supported the market.Weekly dressed trade was generally up $5-$7 per cwt. with most the sales from $238-$240 delivered. A significant volume of heifers traded.
The cash-to-futures basis weakened to -$3.12 but remained seasonally strong.
Weekly Western Canadian fed slaughter to Nov. 12 rose two percent to 33,973 head. Slaughter is up five percent for the year.
Weekly exports to Nov. 5 rose 18 percent to 7,814 head. Exports for the year are up 49 percent.
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Heifers have been cleaned up, and it looks like feedlots have marketed most of their 2015 fall-placed calves.
North American market-ready supplies are expected to tighten and support prices.
A large seasonal volume of non-fed cattle is currently supplementing the weekly kill but is not a major issue.
Live prices rallied strongly in the United States, climbing in the south by $4-$5 per cwt. over the previous week with most trading at $108-$109.
Dressed sales in the north were $4-$6 cwt. higher at $168-$170.
Cows mixed
D1, D2 cows ranged $75-$90 to average $82.75, up $1.11. D3 cows ranged $69-$82 to average $75.60. Rail grade cows ranged $160-$165.
Bulls averaged $99.75, down 50 cents, which is the first sub-$100 average since March 2014.
Slaughter was 9,752 head last week and 9,573 the previous week, marking the two largest weekly volumes in Western Canada this year. The last time there were two consecutive weeks topping 9,500 head was in late 2014.
Feeders rally
Calf and feeder prices have rallied seven to 11 percent from the lows in late October.
The calf market has likely put in its low for the year.
U.S. calf prices have also strengthened but not enough to cause calves to be exported south. Alberta calves have fetched a premium to the U.S. market for much of the fall.
Eastern Canadian buyers were more active in the western Canadian market compared to earlier in the month.
Manitoba steer calves 600-800 pounds are trading steady to a slight premium against the Alberta market.
A few more pre-conditioned calves have come on the market.
Long weaned heavier calves are fetching premiums.
Weekly feeder exports were 3,217 head. It was the first time since June that export volumes topped year-ago levels.
Alberta auction volumes are down about 24,000 head for the first three weeks of November from last year.
The largest weekly volumes are now behind us. Strengthening calf and feeder prices might flush out a few more this week, but volume should be manageable.
Bred volumes have been light but are anticipated to pick up over the next couple of weeks. Most bred sales were in southern Alberta.
Butcher cow prices are putting roughly a $1,200 floor price on the market. Bred cows have averaged $1,375-$1,400 per head, $800-$900 lower than the same time last year.
Younger dispersal type cows and top sort bred heifers are still seeing sales reach slightly more than $2,000 per head. It is not uncommon to see bred prices strengthen toward the end of the year.
Beef lower
U.S. boxed beef prices fell with Choice down $3.28 at $182.31 and Select down $1.57 at $167.10.
The price decline was not bad considering the large volume of meat sold. Retail demand has been good in the U.S., considering consumers have a choice of lower priced pork and poultry.
Weekly Canadian cut-out values to Nov. 11 fell with AAA down C$1.07 at $242.37 per cwt. and AA down $2.93 at $230.10.
The overall cutout is now 13–14 percent lower than a year ago.
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.
