Fed prices rise
Fed cattle prices started steady last week but moved higher to average $85.67 per hundredweight on steers and $85.11 on heifers, said Canfax.
The steer average was up $1.07 and heifers were up 50 cents.
Local and U.S. packers were active buyers. About 19,500 head sold, more than last week, but not all the showlist moved.
Fed cattle exports totalled 14,468 head two weeks ago, down from the 22,000-24,000 per week common earlier this fall.
The Canada-United States basis will remain in the $12-$13 under range barring surprises in the U.S. fed cash market.
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A lower Canadian dollar and steady U.S. fed cash market have supported the Canadian market. Offsetting that support is increasing fed cattle supplies, forthcoming holiday disruptions to the kill schedule and increased packer appetite for slaughter cows.
D1, 2 cows rose $7 per cwt. last week.
Beef prices mixed
Beef prices were mixed in the U.S. with Choice up $2.50 US per cwt. but Select down $1.
This widened the Choice-Select spread to nearly $17 compared to $11 the same time a year ago. An expected decline in rib sales as the market moves past the holiday season could pressure the Choice lower in coming weeks.
The Canadian cutout saw big swings with AAA up $1 Cdn but AA down $7 from the previous week.
Packers report slow sales heading into Christmas with the inventory of many items starting to build. There also appears to be plenty of pork in the system.
The Calgary wholesale price for delivery this week is steady at $141-$143.
Grain price hurts feeders
Feeder prices fell again with light calves hit the hardest.
The calf run has not been nearly as large as in previous years with producers opting to keep calves at home longer, Canfax said. Now they may be feeling the pressure to sell.
Light steers 300-500 lb. fell $3-$4 while heifers 300-500 lb. were $2-$3.50 lower.
Steers 500-700 lb. were down $1.25-$1.50 and heifers the same weight fell $2.25-$3.75.
Heavy steers were down $1.50-$2.50 and heavy heifers fell $1.75-$2.75.
About 73,000 head traded at auction, up 38 percent from the week before and up 40 percent from last year.
Strong packer interest for butcher cows saw the price jump $5-$7.25, while butcher bulls gained $3.
For the week ending Dec. 2, 3,080 feeders were exported, said Canfax.
Strong feed grain prices are pressuring feeder prices.
Auction market volumes and prices will likely decrease heading into the holiday season. Cull cow prices might also back off.
Stock bred cattle prices rose. Most bred cows were $800-$1,100, with tops to $1,350 and plain animals $350-$750.
Bred heifers were mostly $850-$1,200, with tops to $1,325 and the plain end $350-$800.
Cow-calf pairs were $750-$1,025.
Hogs steady
Cold weather limited hog deliveries in the U.S. last week.
Deliveries might pick up this week, but slaughter could begin to slow as the holiday period approaches.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $46.50 US per cwt. on Dec. 8, similar to $46 Dec. 1.
The U.S. composite pork carcass cut-out value climbed to $65.66 US on Dec. 8, up from $65.07 on Dec. 1.
Federal slaughter in the U.S. was estimated at 2.11 million, down 2.3 percent from 2.16 million the week before.
