Fed prices ease
Alberta direct cattle sales saw light to moderate cash trade last week with weighted average steer prices easing $1.73 per hundredweight lower than the previous week. Last week’s cash offering was modest.
Dressed prices were steady to $5 per cwt. lower than the previous week from $252-$253 per cwt. delivered. Light live trade was reported, comparable with rail sales. Average steer prices eased seasonally lower for a sixth week, but compared with the five-year average were four percent higher.
Total Canadian slaughter for the week ending July 17 was three percent larger than the same week last year and the largest reported in more than 10 years at 72,841 head. Western Canadian fed slaughter was nine percent larger than the previous week at 52,919 head and year to date volume totals 17 percent larger at 1,172,990 head.
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Canadian steer carcass weights for the same week dipped seven pounds lower than the previous week and were eight lb. heavier than year ago at 883 lb.
Canadian fed cattle/cow exports to the United States for the week ending July 10 rebounded 53 percent larger than the previous week to 5,947 head and were 21 percent lower than the same week last year.
Ontario buyer interest was lacklustre last week with moderate dressed trade sliding $3 per cwt. lower than the previous week marked at $260 per cwt. delivered.
Feedlots are well sold, and market ready supplies should remain manageable. Buyers do maintain market leverage. Feed barley for immediate delivery traded at or around $9 per bushel last week.
In the U.S., live trade in the south was steady to US$1 per cwt. lower than the previous week with most sales reported from $118-$120 per cwt. Northern live trade saw a full $120-$125 per cwt. trade range and averaged around $2 per cwt. lower than the previous week.
U.S. steer carcass weights for the week ending July 10 were one lb. heavier than the previous week but 11 lb. lighter than year ago. Calves traded unevenly $2 per cwt. either side of steady with few on offer.
Drought induces cow sales
Dry conditions continue to bring cows to market, and supply is outpacing demand. Over the past six weeks butcher cow prices have dropped $17 per cwt. Over than same time, Alberta cow prices have moved from a $14-$18 per cwt. premium against the U.S. market to a discount last week. Alberta cow prices have dropped enough that U.S. packer interest has picked up and more cows are going into the U.S. for slaughter.
Alberta D2 cow prices are trading $9.25 per cwt. below the 10-year average. Last week D2s averaged $85.83 per cwt. and D3s averaged $76.75.
Cow-calf pair volumes have not been large, but in many cases if the calf weighs more than 300 lb., pairs are being split. Demand for bred stock remains weak. Many late summer/fall/winter calving cows are going to slaughter. In Manitoba, auction facilities that would not traditionally operate in summer are running drought relief sales.
Western Canadian cow slaughter for the week ending July 17 totalled slightly more than 7,000 head. For the middle of July this is the largest slaughter since 2009.
U.S. cutout lower
In U.S. beef trade, cut-out values eased seasonally lower last week with wholesale buyers content to wait out the market. Choice averaged US$266.14 per cwt. and Select averaged $249.77. Total slaughter last week was estimated steady with the previous week at 652,000 head.
Yearling run starts early
The yearling run is underway, and cattle are moving one to two months earlier than normal. On average, steers weighing more than 700 lb. are trading $8.22 per cwt. higher than the five-year average, and heifers are trading $6.85 per cwt. higher.
Last week 800-900 lb. steers and heifers established new annual price highs.
For the first half of July, 550 lb. steer calves were averaging a $10.25 per cwt. premium against the U.S. market compared to $28.50 per cwt. in June.
Spot barley prices have been reported from $400-$410 per tonne delivered into southern Alberta, and new crop sales are being booked at $340-$350 per tonne. Western Canadian feedlots are actively booking old and new crop corn from the U.S.
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.
