This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattle 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 price sets record
Weighted average steer prices closed slightly more than $260 per hundredweight last week, for the second consecutive week, and set new record highs. Over the past 50 years, first half of the year highs have only occurred in May seven times.
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Leverage continues to favour cattle feeders, but the packing segment has responded by scaling back hours to match tighter fed cattle numbers. For the middle of May, excluding 2020, western Canadian fed slaughter was the smallest since 2016.
Light trade was reported in Alberta and Saskatchewan last week with all three western Canadian packers procuring cattle. Dressed sales were reported from $432-$439.50 per cwt. delivered.
Last week’s Alberta fed cash-to-futures basis was reported at +$8.18 per cwt., steady with the 10-year average (+$8.03 per cwt.).
In Ontario, labour negotiations between the union and Cargill are ongoing. Employees have been working without a contract since the beginning of the year. Many were optimistic a deal would be reached before the strike deadline of May 27.
Last week, dressed sales were reported from $407-$415 per cwt. delivered, steady to $8 per cwt. higher than the previous week.
Lower slaughter rates are not overly positive news for the fed cattle market and could pose additional price risk for the summer market. Over the past 10 years, the average decline from first half of the year highs to second half of the year lows stands at 15 per cent.
In the United States, dreseed sales in Iowa and Nebraska ranged from US$300-$304 per cwt., steady to $4 per cwt. higher than the previous week. Live sales in the northern feeding states were at $192 per cwt., $2 per cwt. stronger. Live sales in Texas and Kansas were mostly at $187 per cwt., up $1 per cwt. Northern fed prices established new all-time price highs.
U.S. beef cow slaughter for the week ending May 11 was slightly more than 54,000 head, 21 per cent lower than last year. Year to date, beef cow slaughter is the smallest since 2018.
Cow price rises
Alberta D1 and 2 cows closed last week $1 per cwt. higher than the previous week, pushing toward $186 per cwt. D2s. averaged $185.58 and D3s averaged $169.29 per cwt. Feeder cows also ended the week $1 per cwt. stronger, just shy of $197 per cwt.
Butcher bulls were the biggest mover last week, climbing above $200 per cwt. and ending the week at $203 per cwt. Rail-grade cows saw a small pop, ranging between $355 and $360 per cwt.
Ontario D1/2 cows were reported $4 per cwt. lower, at $154 per cwt. D3 cow prices eased $3 per cwt. to $129 per cwt.
Year-to-date non-fed slaughter, at 187,668 head, is down 7.4 per cent from last year. Western Canadian non-fed slaughter, at 144,441 head, is down 6.2 per cent, with eastern Canadian non-fed slaughter at 43,227 head, down 11.4 per cent.
Western Canadian cow slaughter for the week ending May 18 totalled 5,469 head, down nine per cent from last year. Spring rain over the last couple of weeks is encouraging for beef cow retention.
Feeder trade mixed
Alberta auction volume last week, at 12,461 head, was down 41 per cent from last year. Many auctions did not run over the long weekend. Year-to-date auction volumes are 532,460 head, down 3.8 per cent from last year.
Alberta feeders traded mixed last week with steers stronger and heifers generally softer. Steers across all weight classes traded stronger, ranging from $2.23-12.54 per cwt., with only steers heavier than 900 pounds trading steady. Alberta heifers were steady to $6.63 per cwt. softer, except for 700-800 lb., which traded $5.23 per cwt. stronger at $325.92 per cwt.
Comparing Alberta and Ontario feeder prices last week, Alberta grass type steers traded at a premium, while steers weighing 700 lb. and up were at a discount. Alberta heifers were at a discount to Ontario across all weight classes.
The nearby feeder futures contract for August was up $5.55 per cwt. to $262.90 per cwt. last week and continues its positive trend.
Feeder cattle exports to the U.S. for the week ending May 11 were 5,316 head, up five per cent from last year. Year-to-date exports of 61,407 head are also up five per cent from last year.
Cutouts steady
In U.S. beef trade, Choice cutouts closed last week steady with the previous week, at US$309.84 per cwt., with Select a modest one per cent stronger to $300.08 per cwt. Relative strength on Select narrowed the Choice-to-Select spread to $9.76 per cwt.
