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 slaughter surges
Moderate cash trade developed last week with prices generally steady with the previous week. Most of it was reported dressed from $262-$263 per hundredweight delivered. Weighted average steer prices closed last week at $156.38 per cwt., and prices rebounded almost $3 per cwt. higher over the previous two weeks.
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Total Canadian slaughter for the week ending Nov. 6 surged six percent larger than the previous week to 72,004 head and was seven percent larger than the five-year historic average. Canadian fed cattle slaughter for the same week was reported five percent larger than the previous week and was 23 percent larger than the five-year average at 61,150 head. Year to date, Canadian fed slaughter was nine percent larger than year ago totalling 2,401,845 head.
Canadian steer carcass weights eased three pounds lower than the previous week to 946 lb.
Canadian fed cattle/cow exports to the United States for the week ending Oct. 30 surged 21 percent larger than the previous week to 13,280 head, the largest weekly export volume this year.
Ontario saw moderate volume trade last week, and prices were once again steady at $270 per cwt. delivered.
Both major packers added a Saturday shift last week, and recent large harvests are eroding captive slaughter supply inventory. Market-ready feedlot supplies for the rest of November should be manageable, but a significant volume of feeders heavier than 800 lb. were placed from June to August during the drought to place against the December fed market.
The market is also watching labour negotiations at the Cargill High River plant ahead of a Dec. 6 potential strike deadline.
In the U.S., moderate trade last week saw live prices reported from US$130-$133 per cwt. in most feeding areas. Live trade in the north was $1-$3 per cwt. higher than the previous week.
Dressed sales were reported in a full $204-$207 delivered trade range with the bulk $4-$5 per cwt. higher than the previous week’s Nebraska rail average at around $207 per cwt. delivered.
Stockers and feeders saw prices unevenly $2-$2 per cwt. on either side of steady.
Non-fed prices still low
November is traditionally a tough month for the non-fed market, and this year is no exception. For the first half of November, butcher cow prices are the lowest since 2010.
The market looked a bit stronger late last week. Annual lows may have been reached. D2s last week averaged $60.90, and D3s averaged $51.64.
Over the previous two weeks, Alberta cow prices have been at a $17-$18 per cwt. discount to the U.S. market. With cow prices at the lowest in 10 years and at such a large discount to the U.S., speculative and feeder cow buyer interest has improved.
For the week ending Nov. 6, western Canadian cow slaughter totalled slightly more than 7,600 head, the largest since early March and the fourth largest weekly slaughter volume of the year. Cow slaughter volumes traditionally peak in late November or early December.
Feeder auctions slow
Feeder and stocker auction volumes in November are far different from October, which saw large volumes. Numbers moderated this month, and last week was the second in a row that auction volumes were below last year.
Over the past four weeks, the largest price decline has been on 600-799 lb. steers and 300-399 lb. heifers with prices dripping $11-$12 per cwt. Over that same time, the smallest price declines have been on 400-500 lb. steers and 500-600 lb. heifers, with prices down $3-$4 per cwt.
Last week the 500-600 lb. steer calf price set a new annual low, averaging $208.17 per cwt. This is the third lowest weekly price in two years.
In general, the Alberta calf market has had a stable trading range over the past three years with prices ranging roughly from $205-$235 per cwt. Prices are at the low end of the three-year price range, which might suggest lows are close.
The fall calf run is in the later stages and volumes will continue to decline.
Cutouts ease lower
In U.S. beef trade, cut-out values eased lower. Choice slipped by more than $5 per cwt. to average US$285.14, and Select eased $1 per cwt. to average $267.29.
U.S. cattle slaughter last week was estimated at 655,000 head, mostly steady with the same week last year.
