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 fed numbers
Last week’s fed steer offering was the smallest seen so far this year. Light heifer trade was reported, comparable with steers, but volumes were too slight to establish a weekly trend. Most cattle that traded were scheduled for slaughter in the last week of April.
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With a Friday holiday, Western Canadian fed slaughter for the week ending April 3 was significantly lower than the previous week at 30,991 head and year to date totalled seven percent larger than a year ago at 519,157 head.
Canadian fed cattle-cow exports to the United States for the week ending March 27 continued sideways for a fourth week at 9,504 head.
Thin Ontario trade was reported steady at $240 per hundredweight delivered, but sale volumes were limited. Backlogged fed supplies are beginning to tighten, but cattle traded last week were scheduled three weeks out.
Despite an announced vaccination program for packing plant workers, the virus and the time commitments to give vaccinations could continue to limit the workforce and restrict production. Market-ready supplies should continue to tighten through the second quarter.
In the U.S., fed cattle prices in the south gained strength. Prices were mostly US$120-$120 per cwt., which was $4 per cwt. higher than the previous week. Northern trade was reported $6-$7 per cwt. higher than the previous week with live sales mostly from $123-$125 per cwt. Feeders, calves and cows were all stronger last week. Cattlefax reported a new annual high for utility cows at $68.44 per cwt., which was $2.20 per cwt. higher than the previous week.
Alta. bulls at new high
Non-fed cattle numbers at auction were moderate last week. Prices were stronger for cull cows and bulls. D2 cows averaged $88.75 and D3s averaged $78.88 per cwt. It was the first time this year that D2 cow prices topped $88 per cwt. Slaughter bulls averaged $107.93 and Alberta bulls reached a new annual high.
Cow and bull prices are below last year but above the same time in 2019. D2 cow prices were $7 per cwt. below the five-year average for that week. An early April storm and holiday Friday significantly reduced cow kill. In the West, it was 4,299 head, almost half the number processed in the same week a year ago and the smallest weekly kill since last August.
Bred cows last week traded in a range of $1,000 to $2,400 per head. Heifer prices ranged from $1,500-$2,200 per head and cow-calf pairs traded in a range of $1,500-$2,750.
Feeder volumes light
The calf and feeder markets were mixed last week, but heavier animals had a stronger tone. Auction volumes were light. After the heavier auction volumes that started this year, it appears many calves carried into this spring have been marketed.
All calf and feeder prices are above a year ago, but 550-pound Alberta steer prices are below 2019. Heavier feeders were $2-$3 per cwt. higher than the same week in 2019. Grass buyers have been more active on some mid-weight feeders that can go to grass, which has supported the market. Light calf prices were highly variable.
The feeder cash to futures basis continues to weaken, hitting the weakest level of the year at -$4.08 per cwt. for Alberta 850 lb. steers. Seasonally the basis hits its lowest level in late March and tends to strengthen further into spring.
Moisture conditions continue to be a concern but grass cattle demand is expected to remain supportive.
Cutouts rocket upward
In U.S. beef trade, cut-out values surged sharply higher last week on seasonally strong demand. Choice averaged US$270.50 per cwt., which was up $20.53 per cwt. from the previous week. Select averaged $263.83 per cwt., up $19.13 per cwt. from the previous week. Prices for grind and trim continued to seasonally strengthen.
