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 prices rise
Alberta direct cattle sales saw moderate to active trade this week with live prices firming $2-$3 per hundredweight higher than the previous week. Fed steer averages rose $3.48 to average $154.54 last week, and heifer prices rose $3.05 to average $154.10 per cwt.
Read Also
One Beer Market Updates Day 3 – Lentils and beef
Day 3 of the One Beer Market Update at Ag in Motion 2025.
Dressed sales were generally $3-$7 per cwt. higher than the previous week with most trade reported at $260 per cwt. delivered. Weighted average steer prices strengthened and were fully steady with last year. Average heifer prices also firmed compared to the previous week.
The first round of heavy heifers were sorted out and marketed during the last week of November, and heifer sale volumes last week were modest. A handful of cash cattle were carried over into this week but feedlot supplies remain generally current.
Last week the cash to futures basis strengthened modestly from -7.23 to -4.53 per cwt. and the Alberta-Nebraska cash basis was estimated at around -3.76 per cwt.
Western Canadian fed slaughter for the week ending Dec. 8 was one percent larger than the previous week at 37,347 head. Year to date western Canadian fed slaughter was six percent larger at 1,848,072 head.
Canadian fed cattle-slaughter cow exports to the United States for the week ending Dec. 1 were three percent larger than the previous week at 9,158 head. Year to date fed cattle-cow exports to the U.S. were 18 percent lower than a year ago.
This week is the last full five-day harvest of the year, and packers have enough inventories for reduced holiday season slaughter. Historically, prices soften January through February on reduced post-holiday demand. A surge of basis contract cattle has recently been booked to go state side during the first quarter of 2019, and feedlots potentially could gain some local market leverage.
In the U.S., light trade last week saw prices fully steady with the previous week. Prices were also steady in the north from $118-$119 per cwt. Dressed sales trended $1 per cwt. higher than the previous week to $188 per cwt. in the north. U.S. steer carcass weights eased three pounds lower than the previous week to 899 lb. and were four lb. lighter than one year ago.
Cow, bull prices up
Prices for D2 cows rose by $1.08 last week to average $74.50 per cwt., and slaughter bull prices were up by 38 cents to average $85.13.
Non-fed volumes through commercial auction facilities started to moderate last week. Peak supplies and market lows are now behind us. Over the past several weeks Alberta cow prices have been trading at a $2-$3 premium against the U.S. utility market, the narrowest that the Alberta-U.S. premium has been this year.
This year’s open fall has allowed producers to graze cattle out on stubble fields and fall pastures. The economics of cheaper grazing and cull cow prices hitting five-year lows have encouraged some producers to carry cattle into January.
That said, carry-over volumes wouldn’t be overwhelming heading into the new year. Western Canadian cow slaughter volumes for the first quarter of 2019 could be down as much as five percent. This week is the last full week to buy cows leading up to the holiday, and prices were expected to be stronger.
Feeders look good
The western Canadian calf and feeder indices were up $5-$5.50 per cwt. in the week ending Dec. 14. For the first two weeks in December, auction volumes in British Columbia, Alberta, Saskatchewan and Manitoba were up 18,200 head compared to last year.
Year over year, the smallest price decline is seen on heifers heavier than 900 pounds with prices 50 cents lower than last year. The price spread between 650 lb. ($176.60) and 950 lb. ($171.73) heifers remains historically narrow.
In terms of the cash to cash spread, there is a strong correlation between fed and feeder basis levels. Over the past month Alberta fed prices have been trading at a discount to the U.S. market. Weaker basis levels have also been observed on the feeder cattle market because 750 lb. steers were trading at an $11 per cwt. discount to the U.S. market. The last time feeder basis levels were this weak was in December 2015.
Canadian feeder exports to the U.S. totalled 5,557 head. It was the 10th consecutive week that feeder exports were above year ago levels.
Eastern buyers are traditionally active on the western Canadian feeder cattle market in early January, which could support heavyweight feeder prices at the start of 2019.
Bred cattle prices are at the highest point they have been all fall. Last week, bred heifers averaged $2,050 per head, and bred cows averaged $1,925 per head. Bred prices are trading from $100-$200 per head lower than last year. Reputation bred heifers traded strong last week with sales reported at slightly less than $3,000 per head. Most of the middle to older aged cows are finding homes and staying out of the slaughter mix.
Beef trade steady
In U.S. beef trade, cut-out values traded steady to higher last week with Choice gaining momentum later in the week to average US$212.47. Select strengthened to average $201 per cwt.
Canadian AAA cut-out values for the week ending Nov. 30 firmed $2 per cwt. higher than the previous week to average $272.42, which was $9.93 higher than a year ago. AA prices eased modestly compared to the previous week to average $256.72 but were higher than the same week last year.
