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.
The Alberta cash fed market failed to fully develop last week ahead of the Easter weekend. Early bids of $240 to $245 per hundredweight didn’t attract feedlot attention, and managers opted to carry cattle into next week.
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Western Canadian fed slaughter was three percent lower than the week before, sliding to 40,453 head.
Steer carcass weights averaged one pound heavier than the previous week, when they hit 903 pounds and were modestly two lb. larger than a year ago.
Fed cattle exports to the United States for the week ending March 20 were steady at 9,496 head. Year-to-date exports dropped nine percent to 110,050 head.
Light Ontario trade developed mid-week with prices at $240 per cwt.
Most slaughter is slated for April 12-26. Managing carcass weights will be challenging going ahead.
Alberta fed cash prices continue well below the historic five-year average. Slaughter volumes during the first quarter have been significantly larger than the five-year average and last year, suggesting ample market-ready supply. Feeder placements in the last quarter of 2020 were 20 percent lower than the previous year. Market-ready supply is expected to tighten moving forward, even with increased feeder imports from the U.S., and cattle feeders should gain leverage.
Cash prices are expected steady to stronger.
The U.S. cattle market saw spring demand heating up. Light live fed trade in the south was $1 to $2 per cwt. higher than last week at $116-$117 per cwt. Trade in the north was very light, with live prices about $2 per cwt. stronger than the week before at $118 per cwt.
The latest U.S. slaughter report shows steer carcass weights down three lb. from the previous week and previous year. Cow prices picked up, while feeder prices started strong but were on the defensive late in the week, given volatility and higher grain prices after crop reports.
Non-fed cattle supplies continue to be manageable. Last week’s offering was smaller than previous weeks after a storm delayed deliveries. Slaughter year-to-date totals 112,070 head, or 12 percent lower than last year. This is the third smallest slaughter in the last 15 years behind 2015 and 2016.
Alberta bull prices averaged $1.10 per cwt. below last year for the first quarter, while D2 cow prices averaged $5.90 per cwt. lower than last year. D2 cows averaged $86.17 in Alberta and $77.53 in Ontario.
Higher U.S. beef cut-out values in the last week should support the trim market.
The market for feeders was steady to weaker with largest week-over-week declines seen on 500 to 700 lb. heifers. As Canadian fed prices moved lower and U.S. corn futures traded up, the news is not good for the feed cattle market and could place additional pressure on the market this week.
The U.S. Department of Agriculture released its grains stocks and prospective plantings reports and was bullish to grain markets.
Lethbridge barley has been trading record high through 2021, generally between $310 and $325 per tonne. Tight barley supply and strong export demand places Alberta feedlots at a feed cost disadvantage over the last two years. Corn imports had moderated barley demand, but as U.S. corn prices increase, that impacts feed grain markets.
The Alberta 850 lb. feeder steer basis weakened from +6.71 per cwt. to -$1.82 per cwt. This is the weakest basis level of the year; March is typically the weakest basis level of the entire year.
Moisture concerns are taking some shine off the grass market. Drought is a concern in much of the U.S. as well.
Since mid-February most pressure has been on 900 lb. and heavier feeder steers, which are down $5 to $8 per cwt.
U.S. cut-out values rallied sharply higher on strong middle meat and brisket demand. Choice cut-out value rose nearly $11 from $236.45 to $247.12 per cwt. Select cut-out values went up from $226.25 to $238.13 per cwt.
Statistics Canada released its 2020 farm cash receipts report, noting total cattle and calves receipts were down 5.2 percent last year to $9.1 billion, mostly due to lower prices and volumes.
