Strong technical support rallied prices higher on last week’s large cash offering. Live trade was generally $1.00/cwt higher while dressed sales surged $5.00/cwt higher than the previous week. The majority of live trade was around $116.00/cwt, and dressed steer prices were firmly at $196.00 delivered. US buyers procured a handful of local cattle. Last week’s sales volume totaled 13,742 head and was 17% smaller than the previous week. The weekly Alberta cash to futures basis narrowed slightly from -11.97 to -11.59. Canadian fed cattle exports to the US for the week ending November 10th eased lower than the previous week to 12,491 head.
Last week 300 - 500 lb calves traded $1.00-2.00/cwt lower while short keep yearlings traded fully steady. The Canfax average steer price closed the week $0.34 lower while heifers eased $0.44. Reported auction volumes totaled 87,043, up 27% from the previous week. Canadian feeder exports to the US for the week ending November 10th totaled 1,353, down 36% from the previous week.
Despite increasing supplies, butcher cows traded generally $0.50/cwt higher last week. Rail bids were reported generally $1.00/cwt higher. Quality of butcher bulls on offer has been reported as mixed and prices were nearly $2.00 lower than the previous week. Canadian non-fed exports for the week ending November 10th totaled 7,787.
Local market ready supplies will tighten moving forward
Holiday demand for middles should improve to support the cutout
Carcass weights trended lower over the last 3 weeks
Feed grain remains in tight hands at lofty prices
North American negotiated cattle marketing’s are dwindling
Fund investors are expected to take some profit out of cattle futures next week anticipating renewed attention on the American and European debt situation
For more detailed information on markets this week please visit the Canfax website www.canfax.ca.