This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattlemen’s Association. More market information, analysis and statistics are available by becoming a Canfax subscriber by calling 403-275-5110 or at www.canfax.ca.
Fed prices hold steady
Alberta direct cattle sales saw moderate volume cash trade last week with weighted average prices closing fully steady with the previous week. Live steer trade was reported fully steady from $150-$150.25 per hundredweight. Dressed sales were reported in a tight $254-$255 per cwt. delivered trade range for February kill.
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Both major packers procured cash cattle last week, and out-front inventories are moderate.
Western Canadian fed slaughter for the week ending Jan. 30 was 17 percent lower than the previous week at 37,678 head, and year-to-date volume was 20 percent larger than a year ago at 164,073 head, which was 24 percent larger than the five-year average.
Western Canadian steer carcass weights were 18 pounds larger than the previous week to 936 lb. and were significantly 53 lb. larger than the same week last year. Canadian steer carcass weights were the heaviest seen since the first half of November at 951 lb.
Canadian fed cattle/cow exports to the United States for the week ending Jan. 23 were seven percent lower than the previous week at 9,459 head and 12 percent lower than the same week last year. An ample supply of market-ready Ontario cash cattle was offered last week, and buying interest was lacklustre. Prices remained range-bound with light trade reported at $236-$238 per cwt. delivered.
Reduced fed slaughter is anticipated through the rest of February, but fed supplies should seasonally continue to tighten. Market-ready supplies have been aggressively pulled forward, and feedlot inventories could comfortably remain on feed for some time.
Buyers and sellers will grapple for leverage through the rest of this month, but it is doubtful a significant power shift will occur. Historically, February is a tough month for beef demand, but scheduled food service reopenings this week should be price supportive.
In the U.S., live trade was slow with prices $1-$2 per cwt. stronger than the previous week in the south, ranging from US$113.50-$114 per cwt. Northern dressed trade was steady to $2 per cwt. higher than the previous week’s Nebraska rail average at $178-$180 per cwt. delivered.
Live sales in the north developed late last week at $112-$114 per cwt., steady to $2 per cwt. higher than the previous week.
U.S. steer carcass weights for the week ending Jan. 23 were one lb. heavier than the previous week at 926 lb., which was 19 lb. heavier than a year ago. Stocker calves saw prices steady to higher last week on good seasonal demand, while larger feeders traded unevenly $2 per cwt. either side of steady.
Cow prices stuck
Since the start of 2021, D2 cow prices have been stuck in a $2 per cwt. trading range with prices averaging on either side of $75 per cwt. Last week, D2s averaged $75.22 and D3s averaged $65.50 per cwt.
Both major packers were active on the cow market last week, and feeder cow buyers continue to add competition as well. Ring cows were $1 per cwt. higher than the previous week, while dressed bids/sales were a couple dollars higher.
Western Canadian cow slaughter for the week ending Jan. 30 totalled slightly more than 7,400 head. For the end of January, this was the smallest cow slaughter since 2012. Since the beginning of the year, western Canadian cow slaughter has been averaging 500 head per week lower than last year, while eastern Canadian cow slaughter has been averaging 175 head per week larger.
Ontario cow prices set new highs last week. Since early January, eastern Canadian prices have rallied $10 per cwt. With barley prices significantly higher than last year, producers who bought cows last fall and put them on a high concentrate ration could be motivated to get cows marketed sooner rather than later.
Feeder market holds
With spot barley prices at the highest point in more than 15 years and fed prices below last year, it is impressive how well the feeder market has held together. All classes of cattle traded higher last week, and prices were not out of line with last year.
Even though the year is still young, all classes of calves and feeders hit new annual highs. It is very seasonal for the calf/stocker prices to move higher from January to February, but this is a counter-seasonal move for heavyweight feeders because prices historically weaken into February.
Over the past 10 years, there have only been two years that steers heavier than 900 lb. established first quarter highs in February. That was in 2011 and 2014. In terms of similar price years, the fed market is also showing some price similarities with those two years.
On a cash-to-cash basis, Alberta calf and feeder prices are trading at a $9 per cwt. premium to the U.S. market, while last year calf and feeder prices were at a $4-$5 per cwt. premium. Compared to January, eastern buyers seem to be more active on the western Canadian feeder/calf market.
Forward delivery prices have not strengthened to the same degree as the spot cash market. In general, forward delivery prices have been flat for the past three weeks. Alberta-Saskatchewan heifers heavier than 1,000 for August/September delivery have been trading on either side of $170 per cwt.
In Alberta, top-end sales for young dispersal cows and reputation bred heifers reached $2,700 per head. Alberta bred cows averaged $1,900 per head and bred heifers averaged $2,100 per head, which is $200-$360 per head higher than last year.
In Saskatchewan, more than 2,500 head of bred cattle traded last week. Bred cows ranged from $1,200-$2,625, averaging $1,775 per head. Bred heifers traded from $1,600-$2,350, averaging $1,900 per head. Buying interest on the western Canadian bred market was noted from Ontario and Quebec.
U.S. cutouts steady
In U.S. beef trade, cut-out values met price resistance last week, and wholesale buying interest softened. Choice averaged US$234.25 and Select averaged $220.44 per cwt. Middle meats rallied higher while end primals eased lower.
Two southern packers have scheduled plant maintenance closures this week, and reduced U.S. cattle slaughter is anticipated there. In the north, winter weather and reduced market-ready supplies are factors.
