A total of 8,591 head of cattle were sold in Saskatchewan for the week ending September 15, up from 5,568 head sold the previous week, and up slightly from 8,548 head the same week a year ago.
Saskatchewan feeder steer prices were mixed over the week but were primarily higher with all weight categories reported. Saskatchewan feeder steer prices ranged from $2.07 per cwt lower to $21.05 per cwt higher over the reporting week. The biggest price gain of $21.05 per cwt was in the lighter weight 400 lb. to 500 lb. weight category, while the largest decline was in the 600 lb. to 700 lb. weight category.
Saskatchewan feeder heifer prices were also reported in all the weight categories over the reporting week. Prices were primarily lower and ranged from $4.42 per cwt lower to $5.49 per cwt higher from the previous week. The only price gain reported over the reporting week was in the 800 lb. to 900 lb. weight category. The largest price decline was in the 500 lb. to 600 lb. weight category.
The Saskatchewan 750 lb. feeder steer basis compared to the September 14 U.S. feeder cattle index at US$149.73 per cwt was calculated at (+$17.98) per cwt ($200.38 - US$149.73/0.8209), a basis improvement of $5.99 per cwt from the basis of (+$11.99) per cwt from the previous week.
Feeder cattle daily futures prices were mixed over the week but primarily higher to help prices move up week-over-week. The September-to-November contracts increased between US$2.225 and US$2.300 per cwt. The November contract increased US$2.500 per cwt to settle Friday at US$150.725 per cwt. Live daily cattle futures prices were mixed over the week to end mixed and almost unchanged week-over-week. The nearby October contract increased US$0.425 per cwt to settle Friday at US$107.750 per cwt. The December contract declined a few cents to settle Friday at US$112.825 per cwt.
Prices for liveweight, non-fed cattle in Alberta were lower over the week. The price of D1 and D2 slaughter cows declined $1.90 per cwt to average $87.72 per cwt, while the price of D3 slaughter cows declined $3.67 per cwt to average $78.33 per cwt. Fed cattle prices for Alberta fed steers averaged $133.88 per cwt over the week, up $0.30 per cwt from $133.58 per cwt the previous week.
The live (FOB feedlot) weighted average 5-area (Texas/Oklahoma/New Mexico, Kansas, Nebraska, Colorado and Iowa/Minnesota) weekly fed steer price in the U.S. was reported at US$105.89 per cwt, up US$0.97 per cwt or 0.9 per cent from US$104.92 per cwt the previous week, but down US$3.47 per cwt or 3.2 per cent from US$109.36 per cwt the same week a year ago. The dressed (delivered basis) price for U.S. steers delivered to plants in the 5-area was reported at US$166.48 per cwt, up US$0.35 per cwt from US$166.13 per cwt the previous week, but down 2.0 per cent from US$169.89 per cwt the same week a year ago.
Beef production for the week was estimated at 526.2 million lbs., up 15.9 per cent from 454.0 million lbs. the previous shorter (U.S. Labor Day) week, and up 3.0 per cent from 510.8 million lbs. the same week a year ago. Cattle slaughtered over the week were estimated at 642,000 head, up 15.7 per cent from 555,000 head the previous week, and up 5.0 per cent from 611,000 head the same week a year ago.
U.S. choice beef cutout prices (600 to 900 lbs.) averaged US$191.03 per cwt over the week, down US$1.32 per cwt or 0.7 per cent from US$192.35 per cwt the previous week, but up 2.4 per cent from US$186.48 per cwt the same week a year ago.
The USDA released the September World Agricultural Supply and Demand Estimates on September 12. It lowered the 2017 U.S. red meat and poultry production estimates by 0.3 per cent to 100.449 billion lbs. from 100.743 billion lbs. in the August estimates. It is still a 2.9 per cent increase on the 97.612 billion lbs. produced in 2016. The U.S. meat production increases for 2017 are projected to come from beef (+5.3%), pork (+3.6%), and broilers (+1.5%).
The September U.S. beef production estimates for 2017 were at 26.559 billion lbs., down 0.52 per cent from the August estimates. September production estimates for beef declined from August reflecting a slower than expected marketing pace for fed cattle in the second half of 2017. U.S. current crop projections for September have projected the harvested corn acreage at 83.5 million acres, down from 86.7 million acres the previous year, but unchanged from the August estimates.
