Canfax report

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 cattle rise

The fed steer weighted average was $134.28 per hundredweight, up $3.55, and heifers were $132.87.

Dressed prices were $225 per cwt. delivered.

Slaughter levels were the highest in more than five years, thanks to strong packer profits and aggressive six day a week processing.

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Pick-up times were generally two to three weeks out.

Even with the large slaughter, fed exports jumped to 9,200 head, the second largest volume this year.

U.S. cattle cash prices fell $1-$3 lower. Trade in the southern United States was $102, while trade in the north was $157-$160 dressed.

If this keeps up, Alberta prices could gain a premium to the U.S., which hasn’t happened since April.

Even with the lower U.S. cash price, the Chicago futures market rose in anticipation of seasonal strength.

Fed cattle supplies across North America are expected to tighten in the fourth quarter, and cutouts also seasonally tend to strengthen.

The weaker Canadian dollar would help support prices north of the border.

However, large supplies of hogs and pork will cap the market.

Cows rise

Western Canadian cow slaughter totalled 5,502 head, the most since the beginning of June.

However, non-fed numbers at commercial auction have been light considering the time of year.

D1, D2 cows ranged $85-$97 to average $91.25 per cwt., up $1.25. D3 cows ranged $75-$86 to average $80.93.

Bulls averaged $111.56, down $3.90.

Alberta prices are at a sizable premium to the Ontario and U.S. cow markets.

The week marked the first time Canada could export beef from over 30-month animals to Mexico since the BSE outbreak.

Feeders slip

The market tone was weaker as heifers lost ground to their steer counterparts.

However, the calf and yearling markets looked a touch stronger toward the end of the week.

Many producers aggressively sold into the strong market last year, selling everything including calves less than 500 pounds.

With calf and stocker prices down 34-42 percent from last year, producers this year are taking a more cautious approach. Fewer calves weighing less than 450 lb. are on offer.

Lower forage prices and abundant feed grain stocks could be encouraging producers to retain these lighter calves.

U.S. calf and feeder prices are struggling with new annual lows posted.

The U.S. herd has been expanding over the past two years, making more calves available.

Alberta 550 pound steer prices have recently posted a premium over the U.S. calf market.

Fourth quarter feeder exports will likely be small, and there might even be feeder imports.