Fed market strengthens
December is traditionally a strong market for fed cattle and last week prices established new second-half-of-the-year highs. Excitement around the western Canadian fed market pales in comparison to that of the United States. Prices there have gained $13 per hundredweight over the past five weeks and are trading at the highest levels since September 2015.
Alberta fed prices are estimated at a $16 per cwt. discount to the Nebraska market, the weakest basis this year. Competition on the cash market was limited, with one packer not bidding. Sales volumes were light.
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Dressed sales were reported at $270-$275 per cwt. delivered, and cattle that traded last week were booked for the weeks of Dec. 20 and 27 delivery. U.S. buying interest was noted last week but there was little if any premium over local bids to send cattle south.
In the previous two weeks there was a good mix of fed calves and yearlings marketed. From the mid-October high, western Canadian steer carcasses have dropped 19 pounds.
Western Canadian fed slaughter over the past four weeks has averaged 43,963 compared to 44,537 head per week last year.
In Ontario, dressed sales were reported from $270-$275 per cwt. and mostly steady with the previous week. Year to date eastern Canadian heifer slaughter is up nine percent compared to last year and steer slaughter is up three percent.
In the U.S., a few sales were reported at US$138 per cwt. but later strengthened. Dressed sales in Iowa and Nebraska ranged from $218-$221 per cwt., which was $1-$2 per cwt. higher than the previous week. Live sales in Texas and Kansas were reported from $140-$142 per cwt.
The U.S. feeder index broke above $160 per cwt. last week, the highest point in three years. Also in the U.S., cow slaughter volumes continue to be historically large and have been above year-ago levels in 19 of the past 20 weeks.
Cow price lowers
Non-fed cattle traded mixed last week with slaughter cow prices steady to lower and butcher bulls firming modestly higher. D2 cows saw prices around $1 per cwt. lower than the previous week, averaging $66.92, and D3s eased almost $2 per cwt. lower, averaging $55.93 per cwt.
Dressed cow bids firmed $1 per cwt. higher, ranging from $130-$135 per cwt. delivered. Cow offerings at auction were modestly larger last week with a few more bred cows in the mix.
Cow slaughter in Western Canada has been 13 percent above year ago and is 10 percent higher in the east. Average butcher bull prices last week firmed $1 per cwt. higher to $97.11 per cwt.
Good feeder demand
Good demand was seen last week for feeders and prices trended steady to stronger. Light calves less than 400 lb. traded mixed on varied quality and mid-weight calves from 400-600 lb. traded unevenly stronger, with steer prices steady to $1 per cwt. higher. Heifers rallied $3.75-$5.50 per cwt. higher.
Larger calves from 600-800 lb. saw steer and heifer prices converge, with steers easing $1 per cwt. lower and heifers strengthening $2-$3 per cwt. higher. Large feeders over 800 lb. maintained momentum with prices steady to $3 per cwt. higher than the previous week.
Alberta feeders traded at a slight premium to Ontario last week. Manitoba steer prices were once again the strongest in Canada with good feedlot demand from east and west.
Auction volumes surged 12 percent larger than the previous week to 50,344 head, with a few late calf sales and an increase of cow sales, but volume was 15 percent lower than the weekly five-year average.
Year to date auction volumes were 20 percent larger than the same time last year, totalling 1,623,015 head. Feeder exports to the U.S. for the week ending Nov. 20 surged 179 percent larger than year ago to 5,389 head, the second largest weekly export volume this year. Year to date feeder exports are up 11 percent at 120,929 head.
Bred cows averaged $1,700 and bred heifers averaged $1,974.
U.S. cutout softens
In U.S. beef trade, cutout values seasonally softened on reduced holiday buying interest and wholesale beef price resistance. Choice averaged US$272.02, which was $7 per cwt. lower than the previous week, and Select averaged $258.25, down $5.
