Fed cattle steady
Packers started where they left off the previous week, bidding $255-$270 per hundredweight rail grade delivered.
Fed steers live averaged $159.90 per cwt.
Interest was mixed, with one Alberta plant more aggressive on the cash market than the other.
One plant was buying cattle for end of December delivery, while the other was scheduling cattle for the first half of January.
With cash prices hovering near annual lows, cash and grid marketings have slowed a lot.
Feeders are pushing back marketing dates or are shuffling sales into contracts, hoping that prices will improve in December.
Read Also
Green lentil market oversupplied
Farmers in Western Canada can expect price pressure on their new crop of green lentils, as the available supplies among the world’s major lentil-growing nations increase significantly.
A few western Canadian fed cattle traded to the United States at prices that worked back to the mid-C$150s on a live basis, depending on freight and dressing percent.
Canadian beef production has recently run ahead of last year on increased slaughter volume and record large carcass weights. Canadian steer carcasses were 951 pounds, up from 936 lb. the previous week and 905 lb. last year at the same time.
Fed prices normally improve in December, but the rise will be limited as more cattle are held over into December.
Packers will hold leverage until feeders get weights under control and market ready supply tightens.
The weak Canadian dollar has benefited producers here.
U.S. fed prices have been within US$10 per cwt. of their five year average since mid-September. Alberta prices are C$38-$58 above the five year average.
Cows weaker
Slaughter cow prices fell again with live trade $3-$7 per cwt. lower.
D1, D2 cows ranged $95-$113 to average $101.50 and D3 cows ranged $84-$100 to average $91.
Rail grade bids were $198-$203 per cwt. delivered.
Butcher bulls fell $3.70 to average $122.30.
Western Canadian non-fed slaughter for the week ending Nov. 21 fell six percent to 5,890 head.
Weekly Canadian non-fed exports to Nov. 14 slipped to 6,743 head.
Feeders down
There were fewer cattle at auction, but average feeder steer prices fell $3 per cwt. and heifers were down $4.
The market tone appeared to strengthen as the week progressed.
Demand is hurt by lacklustre feeding margins and slow fed cattle turnover, which is reducing feedlot pen space for calves.
Calves 400-700 lb. fell $1-$4.
Steers heavier than 700 lb. were steady to $1 lower, while heifers were $3-$5 lower.
Weekly Alberta sale volumes fell 25 percent to 47,958 head. Volume this year is down five percent at 1.426 million head.
Weekly feeder exports to Nov. 14 were modest at 1,405 head.
The total this year is down 28 percent.
Supply tends to tighten as year end approaches and prices usually rise a little, but that is not happening this year.
Since Oct. 31, 500-600 lb. steers have tumbled $22.50 per cwt.
December price uncertainty is encouraging some cow-calf producers to carry calves over into the New Year.
Year-end buying for tax purposes is spilling into feeder cows as an alternative to high risk calves.
U.S. beef mostly steady
U.S. boxed beef prices Nov. 25 were Choice US$204.09, down 74 cents, and Select $193.76, up 42 cents.
Prices are now approaching 2013 levels.
Large boneless beef inventory in cold storage continued to be a bearish factor for the trim market.
Weekly Canadian boxed beef to Nov. 14 strengthened, with the AAA cutout at C$279.03, up $3.92, and AA at $268.11, up $4.59.
Demand for the Christmas and New Year holidays is expected to support cut-out values through mid-December.
