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 prices lower
U.S. fed cattle prices recently slipped below those of last year, but Canadian fed prices are still $8-$9 per hundredweight higher than a year ago.
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Light trade was reported last week, and buying interest was noted from all three western Canadian packers. Dressed sales were from $405-$406 per cwt. delivered.
This is the eighth consecutive week of lower fed prices. Averaging in the low $240s per cwt., cattle are being sold at or below break-even levels. Last week, packers were discounting carcasses heavier than 1,050 pounds.
Alberta fed cash-to-futures basis was reported at plus $1.47 per cwt. For the middle of September, this is the third strongest basis on record. The only years stronger were 2017 and 2019.
Year-to-date western Canadian fed slaughter volumes are now slightly larger than last year. In addition, Canadian fed cattle shipments to the United States are running above last year.
In Ontario, dressed sales were at $406 per cwt. delivered, $2 per cwt. lower than the previous week. Slaughter rates were strong in July following the strike at Cargill, but volumes have started to moderate.
Contract negotiations are ongoing between the International Longshoremen’s Association, representing 45,000 dockworkers, and the United States Maritime Alliance of shipping companies. The U.S. is Canada’s largest trading partner, taking three-quarters of Canadian beef exports.
In the U.S., dressed sales in Iowa and Nebraska were from US$288-$294 per cwt., steady to $2 per cwt. higher than the previous week. Live sales in the northern feeding states were at $182 per cwt., $1 per cwt. stronger. Sales in Texas and Kansas were at $181 per cwt., fully steady.
U.S. beef exports for July were eight per cent larger than last year. This is the first time since October 2022 that U.S. beef exports have been above last year.
The U.S. continues to see growth in some smaller markets. In July, more beef was shipped to Taiwan, the Philippines and Indonesia.
Cow prices ease
The Alberta non-fed market had a softer tone last week. A seasonal softening trend is expected until October. Alberta D2 cows eased $2 per cwt. to slightly more than $184 per cwt., while D3 cows slipped 50 cents to $169.50 per cwt. Rail grade cows closed the week steady to $5 per cwt. lower than the previous week at $360-$370 per cwt.
Feeder cows eased around $9 per cwt. lower last week. They have been largely range bound between $190-$200 per cwt. since early May. Slaughter bulls averaged $205.60.
Year to date, Alberta D2 cow prices have averaged 27 per cent higher than last year, putting the second half low near $156 per cwt. Two weeks ago, Alberta D2 cows were at a $4 per cwt. premium to U.S. Utility cows and a $17 per cwt. premium to Ontario D2 cows.
The Ontario cull market was mixed last week. D2 cows were $3 per cwt. softer, while D3 cows were 75 cents per cwt. stronger. Year to date, Ontario D2 cows have averaged 23 per cent stronger than last year.
Feeders face pressure
Alberta auction volumes last week remained small at 28,274 head, 30 per cent below the five-year average for the same week.
Last week, Alberta steers weighing 500-900 lb. continued to face pressure, trading steady to $4.92 per cwt. lower than the previous week. Only lightweight calves 400-500 lb. traded $5.83 per cwt. higher than the previous week. Heifer calves 400-600 lb. traded $13.82-$15.21 per cwt. lower and heifers from 600-900 lb. traded steady to $6.02 per cwt. lower than the previous week.
For the past seven consecutive weeks, 550 lb. steers and heifers have traded lower and declined by $33.61 per cwt. and $45 per cwt., respectively. This was the first time this year that 550 lb. heifers have traded below last year.
In August, forward delivery sales for steers weighing 500-599 lb. for September, October, November and December were priced at $459.89 per cwt., $454.04 per cwt., $454.92 per cwt. and $476.94 per cwt., respectively, and 500-599 lb. steers traded at $406.43 per cwt. on the cash market. For steers weighing 700-799 lb. for the same months, prices were $383.50 per cwt., $373.73 per cwt., $358.28 per cwt. and $375.50 per cwt.
In comparison, last week 700-799 lb. steers traded at $349.21 per cwt.
For the week ending Aug. 31, feeder cattle exports to the U.S. were 2,666 head, down 50 per cent from last year. Year-to-date feeder exports, at 103,217 head, are down five per cent from a year ago.
Cut-out price softens
In U.S. beef trade, Choice cutouts softened 1.4 per cent to US$307 per cwt. Select moderated slightly to $295 per cwt. Choice cutouts are steady with last year, while Select was three per cent stronger.
