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.
Slump extended
Alberta direct cattle sales saw active trade last week and weighted average prices firmed $2-$3 per hundredweight higher than the previous week. Live trade was reported from $147-$151 per cwt.
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Dressed prices were fully steady to $4 per cwt. higher than the previous week with trade reported from $246-$250 per cwt. delivered. Some heavy cattle were offered on last week’s show list but weight discounts were waived.
Western Canadian fed slaughter for the week ending Sept. 22 was two percent larger, totalling 43,651 head. Year-to-date western fed slaughter is six percent larger at 1,423,916 head.
Canadian steer carcass weights for the same week were one pound larger than the previous week but one pound lower than a year ago at 923 lb. Canadian fed/cow exports to the United States for the week ending Sept. 15 were more than 9,000 head for the second week in a row and year-to-date totalled 261,638 head. The 9,463 head exported comprised the largest weekly volume seen this year.
In the outlook, a significant volume of September fed cattle have been rolled back into October over the past couple of years and extended the post-grilling season buying slump.
Feedlot managers have worked through inventories this year and it appears October supplies will be manageable. Despite strong summer fed prices pulling feedlot supplies modestly forward, carcass weights are trending seasonally larger.
Packers will maintain leverage heading into October until feedlots can get finished weights under control. Contract and formula supplies are tightening and adequate buying competition is anticipated for the October cash market.
Lowest in five years
Prices for D2 cows rose by 67 cents last week to average $84.50, slightly stronger than the week previous.
Prior to last week, D2 cow prices had declined seven out of the last eight weeks. Cow prices are at their lowest September prices in five years.
D3 cows and butcher bull prices continued to soften slightly last week. The slowdown in auction mart traffic due to weather may have been supportive to the D2 cow market, as western Canadian cow slaughter has exceeded 7,100 head in the previous two weeks. A year ago, cow slaughter was only 5,400 head per week for the same two weeks.
Demand for cull cows remains solid but once volumes pick up later in October and November, prices are expected to weaken. Since 2006, the only time November cow prices averaged higher than September was in 2014.
Yearling wind down
The calf and feeder market remained seasonally strong but there was some slight weakness in spots last week. Mixed weather with rain and snow in areas also slowed volumes through auctions last week.
The yearling market saw slightly lower prices but this is partly related to quality as the yearling run is winding down. Alberta calf prices were mixed, trading C$2 lower to $1.50 per cwt. higher than last week.
Calf prices are $5-$8 per cwt. higher than a year ago but this has narrowed significantly from the beginning of the month when prices were generally $20 per cwt. higher than a year earlier.
Saskatchewan calf prices saw a little more pressure and more of these calves may be coming west, while Manitoba calf prices were mostly flat.
Forward sold calves also continue to sell strong with prices into November similar to current cash prices. Ontario buyers continue to be supporting western Canadian prices. Feeder exports to the U.S. continue to be modest.
