Eight out of the last nine weeks local fed prices have strengthened and annual highs continue to be established. Strengthening basis levels and current market ready supplies have resulted in increased feedlot leverage. The Canfax average steer and heifer closed the week at $119.00/cwt, up generally $0.50 from the previous week. The bulk of dressed trade was reported at $200.00/cwt delivered. For the past seven weeks, Alberta fed steer prices have been at a premium over Eastern Canadian values. Last week’s showlist was cleaned up and accumulated sale volumes totaled 11,620. Last week’s Alberta fed cash to futures basis strengthened 1.30 to close the week at -5.19. Canadian fed exports for the week ending December 1st totaled 6,540 head.
Alberta auction volumes last week were seasonally moderate and should continue to wind down until the New Year. Light 300-500 lb stocker prices eased $1.00/cwt lower than the previous week while mid-weight 500-700 lb steers and heifers traded generally $0.50/cwt higher. The Western Canadian feeder index closed the week at $136.52/cwt, down $0.82. Alberta auction volumes last week totaled 44,900. Canadian feeder exports to the US for the week ending December 1st totaled 2,100 head.
D1, D2 cows traded generally $1.50 higher with live trade reported from $64.00-75.00. D3 cows averaged 60.00/cwt, up $1.00 from the previous week. Rail bids were reported fully steady, ranging from $130.00-135.00/cwt delivered. Butcher bulls averaged $74.25/cwt with live trade reported from $67.00-83.00/cwt. Canadian non-fed exports to the US for the week ending December 1st totaled 11,265 head.
Last week’s Alberta fed cash to futures basis was the strongest since the beginning of May
Alberta/Saskatchewan showlist volumes were the smallest reported this year
Fed supplies have been pulled forward quite aggressively over the past few weeks
Choice ribs have likely peaked
Beef demand heading into the new year tends to be sluggish
Market ready supplies in the US are anticipated to grow as drought placements come forward
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.