Weekly cattle market update reports mixed results

Please find attached the latest Cattle Market Update for the week ending January 15, 2021. Highlights for the week include:

Canfax reported a total of 10,606 head of cattle were sold in Saskatchewan this week, up from 3,862 head during the previous week, but less than the 6,508 head marketed during the same week in 2020. 

Feeder steer prices were mixed across the weight categories when compared to prices reported on December 18, 2020. The largest price increase of $2.75 per cwt occurred in the 600-700lb weight category, ending the week at an average price of $197.13 per cwt. The largest decrease was seen in the 700-800lb weight category, decreasing by $1.95 per cwt to end the week at an average price of $182.25 per cwt. The 800-900lb weight category ended the week at an average price of $171.83 per cwt. The weekly average steer price, across the reported weight categories, was $195.65 per cwt in Saskatchewan. 

Saskatchewan feeder heifer prices were lower across the reported weight categories when compared to prices reported on December 18, 2020. The smallest decrease was seen in the 700-800lb weight category, with prices declining by $0.37 per cwt to end the week at an average price of $162.88. The largest price decrease was seen in the 300-400lb weight category, decreasing $7.73 per cwt to end the week at an average price of $210.67 per cwt. The 600-700lb weight category saw a decrease of $3.00 per cwt to end the week at an average price of $171.25. The weekly average heifer price across the reported weight categories was $185.14 per cwt in Saskatchewan. 2 

The Saskatchewan 750 lb. feeder steer basis compared to the January 14, 2021, U.S. feeder cattle index at US$134.45 per cwt was calculated at (+$11.13) per cwt ($182.25-US$134.45/0.7857), a strengthening of $3.83 per cwt from the basis of (+$7.30) per cwt for the week of December 18, 2020. The basis remains stronger than it was the same week a year ago (+$4.11 per cwt.) 

Feeder cattle futures were lower throughout the week, although ending Friday’s close at an increase compared to the previous day. They ended the week lower with the nearby January futures feeder cattle contract settling at $134.58 per cwt, down $1.25 per cwt from last Friday’s settlement of US$135.83 per cwt. The March contract decreased by $1.00 per cwt for the week to settle Friday at US$135.83 per cwt. 

Live cattle futures prices started the week off with declines followed by two days of positive movement. Unfortunately, price increases didn’t offset the decreases seen earlier in the week with the February contract decreasing overall by US$1.700 per cwt relative to the previous week to settle at US$112.775 per cwt on Friday. The April contract decreased $1.100 per cwt compared to the previous week to settle at US$118.200 per cwt.

Numbers for cattle were mixed