Fed cattle stabilize
Fed steers averaged $154.73 per hundredweight in light trade, and heifers averaged $155.89, steady to a little higher than the previous week.
Dressed sales were about $260 delivered. Lift dates were generally for the end of January.
Cattle futures were again volatile, but the Alberta cash-to-futures basis continued seasonal at around -$9.63.
Weekly slaughter to Dec. 12 was down 16 percent to 30,830 head.
Weekly exports to Dec. 5 re-bounded to 5,502 head, but were down 47 percent for the year.
Feedlots are mostly selling through basis contracts and formula grids, and cash trade will remain limited into the new year.
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One major Alberta packer is killing only four days a week, and this trend will likely continue over the holidays.
Live prices in the southern United States were US$2-$4 lower with most trade at $118. Dressed sales in the north were $2-$3 lower with trade $1 on either side of $184.
Cows stronger
D1, D2 cows ranged C$95-$112 per cwt. to average $103.21, up $2.38, and D3 ranged $80-$100 to average $90.80, up $1.20.
Dressed bids were mostly steady at $200-$205 delivered.
Butcher bull prices fell 53 cents to $119.07 per cwt.
Weekly non-fed slaughter to Dec. 12 was down 23 percent at 6,234.
Weekly exports to Dec. 5 rose one percent to 6,927 head.
Marketings are expected to tighten at auction through the holidays.
However, ample speculative stocks are currently on feed to be carried over into the first quarter.
Feeders drift lower
Calf and feeder prices were more stable last week after the meltdown of the previous week, but the market was still weak with prices down two to 10 cents per pound.
Light volumes supported prices.
Calf prices are ending the year on a disappointing note after the major bull run with calves mostly $50 per cwt. lower than a year ago and yearlings $35-$40 lower.
The large drop in the Canadian dollar last week was mostly overshadowed by the new lows in the cattle futures market.
Some feedlots are full and buyers will be cautious, considering that many cattle feeders are holding inventory that they will lose money on. There are a few potential bright spots in the market, but caution must be maintained.
The weaker loonie supports feeder prices.
The cattle futures markets are oversold and a corrective bounce is warranted. However, the price trend is still down because 2016 will have larger supplies of calves and feeders. Bred cows ranged $1,500-$3,100 and bred heifers ranged $1,900-$3,100.
Beef weaker
Choice traded below US$200 per cwt. for the first time since November 2013 and closed $7.68 lower than the previous week at $195.76. Select fell $5.58 to $185.54.
The U.S. retail beef price in November was 1.5 percent higher than last year, while pork was down 3.6 percent and broilers were off 1.9 percent.
Canadian boxed beef prices are unavailable.
US cattle on feed
The U.S. feedlot cattle supply as of Dec. 1 was 10.794 million head, which was steady with last year. Analysts had forecast a one percent increase, on average. The report was expected to support cattle prices.
November placements were at a record low at 1.601 million head, down 11 percent from 1.794 million last year and well shy of analysts’ average forecast of 1.719 million.
Feedlots are losing money and did not want to buy replacements at prices that would generate more losses.
