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.
Feeder inventory up
The Sept. 1 cattle-on-feed report for Alberta and Saskatchewan reported 707,527 head, the largest fall inventory since 2007 or 16.5 percent higher than a year ago.
Dry conditions and a strong feeder market brought yearlings and some calves to market early, which supported higher placement levels. This was the fourth consecutive month of higher placements compared to last year.
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Placements were up in every category except for 800 pound-plus steers, which were down modestly. Heifer placements surged 30 percent higher than last year, while steer placements are 10 percent higher.
Fed prices lower
Western Canadian fed prices continue to hover around annual lows trading in the low C$140s per hundredweight for the last six weeks. This week steer prices averaged $142.59 per cwt., $8.75 per cwt. higher than last year and $13 per cwt. higher than 2016.
Western Canadian dressed sales ranged from $238-242 per cwt. delivered, while eastern Canadian sales continued to stay below the west with an average price range from $227-230 per cwt. delivered. Buying interest was noted from all three western Canadian plants but most of the sales went to one buyer.
Cattle purchased during the week of Sept. 14 were being scheduled for the week of Oct.1 and Oct. 8 delivery.
Western Canadian slaughter volumes for the holiday short week totalled 37,573 head, seven percent below last year.
The Alberta fed cash to futures basis weakened, closing at -$2.11/cwt., the weakest level seen this year.
Western Canadian heifer carcass weights averaged 851 pounds, the largest weight since November 2017. Western heifers were 31 lb. larger than their eastern counterparts for the fifth week in a row.
Domestic beef production is seven percent greater than last year. Nearly 70 percent were graded AAA but more than 30 percent of them were yield Grade 3.
Western feeders steady to lower
An increased number of feeder calves was on offer and sale volumes were seasonally large. Weekly auction sale volumes were 23 percent larger than last week and 10 percent greater than the same week last year. Sales volumes for this year are slightly ahead of 2017.
Strong demand was observed for light steer calves weighing less than 400 pounds and prices surged over C$6.25 per cwt. higher. Mid weight feeders from 600-800 lb. traded $2 per cwt. either side of steady with keen eastern Canadian buyer interest reported for steers from 600-700 lb.
British Columbia feeder steers weighing 400-500 lb. averaged $234.75 per cwt., while yearlings averaged $195.75 per cwt. Alberta feeder steers weighing 400-500 lb. averaged $240.38 per cwt. while yearlings averaged $201.48 per cwt.
Saskatchewan feeder steers weighing 400-500 lb. averaged $239.75 per cwt. while yearlings averaged $199.42 per cwt. Manitoba feeder steers weighing 400-500 lb. averaged $241.50 per cwt., while yearlings averaged $196.25 per cwt.
Ontario feeder steers weighing 400-500 lb. averaged $230.34 per cwt. while yearlings averaged $204.05 per cwt.
Canadian feeder exports to the United States are increasing with about 1,500 head going south last week. So far 147,675 have been exported.
Slaughter Cows trending lower
Slaughter cow prices trended seasonally lower this week on an ample offering. D2 prices were around C$2.50 per cwt. lower than last week and D3 prices eased $1.25 per cwt. lower. Dressed cow bids slipped $5 per cwt. lower ranging from $163-168 per cwt. delivered. Butcher bull prices fell and closed the week at $106.23/cwt.
Western Canadian non-fed slaughter for the week ending Sept. 8 was at 6,967 head, 13 percent larger than last year. So far this year about 269,000 have been killed.
An increased slaughter cow offering is anticipated moving forward and prices next week are expected to soften. Dressed cow prices are currently trading $10 per cwt. below year ago. If slaughter cow prices continue to track the historic seasonal trend, dressed prices could bottom out in the mid-to-high $150s before the end of the year.
Beef trade
U.S. cut-out values softened again this week with the U.S. Department of Agriculture reporting light to moderate demand on a moderate offering. Choice cutout prices were US$4.71 per cwt. lower than the previous week while Select prices were mostly steady. Loin and ribs traded mixed with Choice sharply lower and Select generally $1.75-$4 per cwt. higher.
Choice brisket plummeted almost $18.50 per cwt. lower this week and Select was modestly $3.50 per cwt. lower. Chuck and round traded $2 per cwt. either side of steady.
Fresh 50 percent lean trim fell sharply lower this week on a moderate to heavy offering while 73 percent ground trended steady with last week.
