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 prices steady
The temporary closure of XL Foods kept fed prices down.
With only one major Alberta packer bidding on fed cattle, it resulted in only light cash trade.
Alberta, Saskatchewan and Manitoba fed cattle saw interest from four major U.S. packers, stretching from Pasco, Washington, to Green Bay, Wisconsin.
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U.S. negotiated cash bids were reported at $181-$182 US, delivered, about $3-$4 lower than the previous week.
The U.S. business was mostly priced on the five-area average.
Alberta fed trade was all on a live basis and prices were steady.
Fed steers averaged $106.42 per hundredweight and heifers were $106.43.
Rail bids of $178 per cwt. delivered were reported with no selling interest.
Feedlots are losing money with prices well below the breakeven point of $120.
Sales volume totalled 13,735, down eight percent from the previous week. Cattle are backing up in the system.
This week’s cash-to-futures basis weakened $1.49, to -$15.40.
Weekly fed exports to Sept. 22 totalled 9,460, up 17 percent from the previous week. Weekly exports had not been that large since April.
Because feedlots have had fewer placements recently, market ready supplies will tighten. However, restricted processing levels will offset the benefit of the supply reduction.
Cut-out values are anticipated firm with North American beef exports picking up and U.S. Thanksgiving buying just around the corner.
However, until XL processing plant issues are resolved, fed prices will continue to struggle.
Cow prices plunge
The XL Foods closure continues to hammer cow prices.
D1, D2 cows traded in a range of $58-$68 to average $63.75, down $5.50 per cwt. D3 cows fell $6.50.
Railgrade cows were $128-$133.
Butcher bull prices fell $5.75.
Weekly non-fed exports to Sept. 22 were up three percent at 5,083.
Feeder price falls
Auction volumes should have risen but the problems with XL Foods caused nervous ranchers to pull booked cattle out of sales, hoping for a stronger market once the situation is resolved.
The week’s auction volume was 18,544 head, down 36 percent.
Average feeder prices fell $2.50 per cwt., but a substantial reduction in large lots of quality feeders may have skewed a comparison with the previous week.
Stockers 300-400 pounds were moderately lower while 400-700 lb. feeders fell $1.50-$2.50.
Feeders heavier than 700 lb. were down $3.50-$4.50.
Weekly exports to Sept. 22 were down 64 percent at 423 head.
Cow-calf producers are under the gun to get calves marketed. Volumes this week are expected to increase and there will be bargain hunters.
But those selling yearlings will be less eager and will wait for the market to rebound.
Calf prices are anticipated to firm and quality yearling prices should trend steady to slightly lower
Canadian beef rebounds
U.S. beef cut-out values traded steady to lower. U.S. packers have negative margins and carcass weights rose last week to near record levels.
Canadian cutouts rebounded from the previous week’s decline.
In the week ending Sept. 28, the AAA price was $178.15 per cwt., up $3.49 and AA was $172.57, up $3.42.
