Price support was realized as the Canadian dollar settled below parity and investment in the cattle complex pushed nearby live cattle futures limit up on Tuesday. Local packer interest remained supportive as last week’s cash offering was cleaned up. The Canfax average steer price closed the week at $111.45/cwt up $1.95, while heifers gained $2.66 to close at $111.34/cwt. Despite moderate carryover from the previous week, showlist volumes were slightly lower. Accumulated sales volumes totaled 15,000. The cash to future basis closed the week at -12.42. USDA reported 11,383 of Canadian fed cattle were exported to the US for the week ending October 22nd.
With over 100,000 head on offer, feeder cattle experienced overhead price resistance. The Canfax average steer price was $2.25/cwt lower while heifers were $1.53/cwt lower. A heavy offering of 5-700 lbs middle weight steers saw prices trade generally $2.50/cwt lower. The Western Canadian feeder index closed the week at $138.64/cwt down $0.63 from the previous week. Reported auction volumes were up 21% from the previous week, totaling 105,800, and could possibly be the peak of the 2011 fall run. Feeder exports to the US for the week ending October 22nd totaled 808 head.
An ample supply of non-fed cattle was observed at auction again last week to pressure prices lower. Last week D1, D2 cows traded nearly $2.00 lower to average $64.27/cwt. D3 cows were also pressured sharply lower ranging from $50.00-62.00/cwt. Butcher bulls have devalued over $10.00/cwt since the beginning of September to average $72.27/cwt. Non fed exports to the US for the week ending October 22nd totaled 2,868.
Strong fundamental price support.
Wholesalers are actively filling holiday orders.
Fed exports to the U.S. have been on a three-week increase.
North American packers could reduce slaughter volumes.
Debt concerns in Europe remain unresolved.
Domestic non-fed values have been on a steady decline.
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.