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 rally continues
Fed prices have rallied for four straight weeks and were trading at the highest point since the second half of July as of last week.
From their lows in August, fed prices have rallied seven percent. Stronger basis levels and higher prices, week over week, resulted in another larger flush of cash cattle.
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Last week, most of the dressed sales ranged from $254-$255 per hundredweight delivered. Lift dates were all over the map but most of those traded are for November delivery.
There are some big cattle in feedlots and weights have been an issue. Packers were buying cattle with 1,050 plus weight breaks, while others were negotiating flat bids with no weight breaks. Western Canadian steer carcass weights averaged 927 pounds two weeks ago.
The strength of the Alberta fed market continues to impress. In recent weeks, Alberta fed prices have been at a $7 or more per cwt. premium against the Nebraska market.
In the past 25 years, two are similar to this year: 1995 and 2006. In both of those years, first-half highs occurred in January and second-half lows occurred in August. They were also relatively flat-trending years, similar to this year. In both 1995 and 2006, January highs turned out to be the highs for the year.
Further price strength is expected into this year’s fourth quarter but based on those two similar years, the market could struggle to overtake the January highs of $167.44 per cwt.
In the United States, dressed sales in the North ranged from US$173-$174 per cwt., steady to $2 lower than the previous week.
Cows trend lower
D2 cows in the West traded at C$78-$92 per cwt. to average $84.17, which was about $2 lower than the previous week. D3s traded at $65-$81 to average $73, which was a slide of about $4 per cwt. Slaughter bulls dropped by $1.32 to average $99 per cwt.
Dressed cow bids slipped $2 lower than the previous week to around $160-$165 per cwt. delivered.
Western Canadian non-fed slaughter for the week ending Oct. 6 slipped 12 percent lower to 6,135 head. Year-to-date western non-fed slaughter was 14 percent larger at 297,775 head. Tax money will remain supportive during the fourth quarter as feeding cows for year-end may offer less risk than buying feeders.
Mixed feeder trade
Alberta stockers and feeders traded mixed last week with steer prices firming $1 per cwt. higher and heifers easing $1 lower.
Steer calves from 300-500 lb. trended steady to higher, while heifer prices were steady to lower. Steer calves from 500-700 lb. saw prices firm around $2-$2.50 per cwt. higher and similar weight heifers trended fully steady.
Feeders from 700-800 lb. eased modestly lower and large feeders over 800 lb. trended generally sideways.
Weekly sale volumes were 15 percent larger than the previous week and six percent larger than the same week last year. Year-to-date sale volumes were up three percent to a total of 1,047,881 head.
United States Department of Agriculture reports Canadian feeder exports to the U.S. for the week ending Sept. 29 eased modestly lower to 2,253 head and year-to-date are 55 percent larger at 156,178 head.
Beef trade mixed
U.S. cut-out values were mixed last week. Choice eased more than $1 per cwt. lower to average US$202.51. Select was up slightly compared to the previous week, to $192.49.
Demand was light to moderate on a generally moderate offering.
U. S. steer carcass weights for the week ending Sept. 29 were four lb. larger than the previous week at 900 lb. and were six lb. heavier than the same week last year.
Canadian cut-out values for the week ending Sept. 29 saw AAA ease $1 per cwt. lower, to $260.37. AA rallied more than $4 per cwt. higher to $249.73.
