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.
Small rise for fed cattle
Weighted average steer and heifer prices closed last week at $148.45 and $147.44 per hundredweight, respectively, which was 75 cents higher than the previous week.
Even with that increase, it was the second consecutive week that prices were below year ago levels. It is common to see the cattle feeder gain leverage over the packing segment moving into the fourth quarter, but this leverage shift has been slow to materialize, Canfax said.
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From a leverage perspective, packers continue to have the upper hand, reflected in weaker fed basis levels. In addition, many cattle are being marketed at big weights in Western Canada. Most of the dressed sales were reported at $248 per cwt. delivered.
Cattle bought last week were being scheduled for the week of Nov. 26 delivery.
In Eastern Canada, Ontario rail bids were reported in the mid $240s per cwt. Eastern Canadian packers are well positioned with cattle because they were buying for the first week of December.
Buying interest in the East was sporadic last week, and one packer pulled bids.
Western Canadian prices remain at a premium to the East, and it is not surprising that cattle from Saskatchewan are coming west into Alberta to be slaughtered. Western Canadian steer carcass weights increased three pounds to average 934 lb., the largest carcass weights since April 2016. As carcass weights increase, grading tends to improve as well.
For the week ending Nov 3, Canadian AAA and Prime grades as a percentage of all A grades were reported at 71.03 percent compared to 64.77 percent last year.
In the United States last week, trade was scattered in Iowa and Nebraska. Dressed sales in the north ranged from US$178-$180 per cwt., steady to $2 lower than the previous week.
Cows, bulls down
Average prices for D2 cows dropped by 97 cents last week to average C$80.11, and slaughter bull prices slipped by $1.04 to average $95.91 per cwt. D3 cow prices eased to $68.56.
Dressed cow bids trended sideways with bids reported from $153-$158 per cwt. delivered.
Western Canadian non-fed slaughter for the week ending Nov. 3 continued to build, up 16 percent to 9,715 head. Year-to-date western non-fed slaughter was 13 percent larger at 329,174 head. Seasonally large non-fed volumes are anticipated again at auction this week.
Feeders trend lower
Alberta feeder prices eased $1.50 per cwt. lower last week on the largest Alberta auction offering seen so far this year. However, volumes were seasonally moderate and were seven percent lower than the same week last year at 84,896 head.
Year-to- date auction volumes are down two percent, totalling 1,361,861 head.
Light calves less than 500 lb. generally traded $1-$2 per cwt. lower than the previous week, and 500-700 lb. calves saw prices trend $1-$3.75 per cwt. lower. Calves from 500-600 lb. are trading $15-$22 per cwt. lower than the same week last year, and prices are eight to 10 percent lower than annual highs set earlier this year.
Yearlings over 900 lb. saw good demand on a moderate offering, and prices trended mostly steady with the previous week.
The U.S. Department of Agriculture reports that Canadian feeder exports to the U.S. for the week ending Oct. 27 surged 17 percent larger to 4,340 head and year to date were 59 percent larger, totalling 170,383 head.
AAA value firms
In U.S. beef trade, Choice cut-out values trended lower last week, averaging US$216.07 compared to $218.55. Select averaged $199.11, down from $204.25 the previous week.
Broad-based buyer resistance intensified across the beef complex. The USDA reported that light to moderate demand softened as the week progressed. Softer prices did stimulate boxed beef movement.
Canadian cut-out values strengthened last week with AAA firming C$4.07 per cwt. higher than the previous week and AA saw a modest gain of 50 cents per cwt. Compared to the same week last year, AAA and AA were $18.16 and $10.94 per cwt. higher, respectively.
