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.
FED CATTLE RISE
The average fed steer price was $150.70 per hundredweight, up 74 cents, and heifers were $148.59, up 53 cents.
Tight supplies lifted the market with prices topping $150 for the first time since the end of June.
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Most of the trade was dressed with prices ranging $250-$254 per cwt. delivered. All three federal Alberta packers were buying. Two wanted rapid delivery.
The cash-to-futures basis weakened to -$4, but that is still good for November-December.
Western Canadian carcass weights rose three pounds to 905 lb. Eastern Canadian weights fell nine lb. to 956 lb. Weights usually decline in December.
Nationally, steer carcasses are seven lb. lighter than last year at this time.
Market ready numbers should remain tight this week, but prices might not rise because Chicago cattle futures fell last week and the Canadian dollar rallied.
Futures fell on profit taking and on ideas that because the market is net long, there might be more long liquidation toward the end of the year.
In the United States, most cash cattle traded at US$120-$121 per cwt., $2-$3 higher than the previous week.
COWS STRONGER
D1, D2 cows ranged C$80-$94 to average $86.30 per cwt., up $1.80. D3 cows ranged $70-$84 to average $77.70. Rail grade cows ranged $164-$169.
Slaughter bulls averaged $96, up $2.13.
Cow slaughter was the second highest this year at 9,100 head, breaking with the recent trend of lower slaughter.
Prices normally rise into December. The increase this year could be two to three percent.
LIGHT FEEDERS RISE
The feeder market is still stronger than last year and the five-year average, even with large volumes at auction. Steers 450 lb. set new second half highs.
Steers 550 lb. traded $3 short of their October high while 650 lb. steers are $8 back.
More preconditioned feeders were on offer and premiums were being paid on larger packages of cattle.
In the forward delivery market, 910 lb. steers for March delivery traded $180-$183.25. That is a five to six percent discount from current cash prices.
It looks like Canada will be a net importer of feeders in the second half of this year.
Prices this week will be limited by the stronger Canadian dollar and higher feed costs in Canada.
Bred cows averaged $1,825 and heifers $2,075.
Demand for young cows and bred heifers from reputation families is strong with top sales up to $2,600 per head. However, interest in older or later calving cows is weak with prices not much better than slaughter prices.
US BEEF LOWER
U.S. Choice was down US$4.37 at $204.64, and Select was down $4.43 at $184.21. The cutout is seven percent higher than last year.
Canadian cutouts were not available.
