Strong beef cutouts and a midweek rally in Chicago cattle futures pushed cash prices higher.
The Canfax weighted average steer price for the week ending Jan. 21 was $101.92 per hundredweight, up $1.89, and heifers were $101.42, up $1.50.
Steer prices have not been this high since May 2007 and are $23.09 higher than last year.
Sales volumes of 17,328 were up 11 percent from the previous week but 14 percent smaller than last year.
There was little interest from American buyers.
The cash to futures basis narrowed to -$6.55 compared to -$8.82 the previous week.
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COW PRICES RISE
D1, D2 cows averaged $63.08, $2.64 higher. D3 cows advanced $4.50, indicating tightening inventory.
Rail cow prices climbed to $127- $129.
Year to date cow slaughter was 20 percent lower than last year.
Butcher bulls rose $4 to close at $71.14. Year to date bull slaughter is up 33 percent.
FEEDER PRICES ADVANCE
The Canfax average steer price rose $2.98 per cwt. and heifers advanced $3.41.
Light steer and heifer calves rose only $1.50-$1.70 while 500-800 pound heifers climbed $3.39-$5.05. Prices might moderate for 500-800 lb. animals this week after this strong gain.
Steers 800-900 lb. rose $3.75 and steers and heifers heavier than 900 lb. were $1.63-$3.33 stronger.
The increases were attributed to aggressive feedlot buying and more consistent quality.
Cold weather affected volumes, with 14,445 head marketed, up 28 percent from the previous week but down 62 percent from a year ago.
Market volume has been slow this calendar year, but the strong prices should increase activity.
The overall tighter supply of feeder cattle will provide price support.
BEEF RISES
U.S. Choice cut-out values rose $3.81 to $172.81 US per cwt.
Select jumped $6.10 to $170.86.
Weekly Canadian slaughter to Jan. 15 was 13 percent higher at 59,273 head. That was five percent smaller than last year.
The Canadian AAA cutout was $159.02 Cdn per cwt., up 61 cents. That was $16.03 higher than last year.
AA cutouts were $157.38, up $1.78. That was up $14.22 over last year.
The Montreal wholesale market for delivery this week rose $3 to $190- $193.
U.S. CATTLE ON FEED
On Jan. 21, the U.S. Department of Agriculture put December placements in American feedlots at 1.795 million head, up 16 percent from a year ago.
On average, analysts expected a 12 percent increase.
High cattle prices and poor grass condition in the dry southern plains caused producers to take cattle to auction early. This could temporarily weaken deferred futures but lead to higher prices later in the year when placements drop.
The Jan. 1 feedlot supply was 11.517 million, up five percent, while analysts expected a four percent increase.
December marketings were 1.827 million, up five percent, slightly more than the average of analysts’ estimates.
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.
