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 market sluggish
The fed market saw some disruption last week from the short-lived Canadian Pacific Railway labour dispute with limited orders placed and an overall lack of buying interest. Total sale volumes were too slight to fully establish a trend. A handful of dressed trade developed in Alberta and Saskatchewan at $275 per hundredweight delivered, and thin live trade at $161.50 per cwt. was comparable. Delivery dates were reported for the middle of April.
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Western Canadian fed slaughter for the week ending March 19 was steady with the previous week at 42,755 head. Year-to-date slaughter volumes were up three percent, totalling 462,173 head. Canadian steer carcass weights were two pounds heavier than the previous week and three lb. smaller than the same week last year.
A significant contrast in the feedlot situation continues from east to west with Ontario steer weights reported 17 lb. lighter than a year ago, while Alberta steer weights are 15 lb. heavier. Canadian fed cattle-cow exports to the United States for the week ending March 12 were steady with the previous week at 12,220 head, and the year-to-date export volume was up six percent, totalling 106,160 head.
The bulk of Ontario trade last week was reported steady at $290 per cwt. delivered with a handful of tops up to $293 per cwt. delivered for immediate slaughter.
Packers have ample slaughter inventory. Cash cattle show lists have been carried over in the past two to three weeks, and feedlot managers are becoming more motivated sellers. Beef buying interest for summer grilling and food service should continue to improve.
In the U.S., trade activity in the south was limited last week, and prices were reported fully steady with the previous week at $138 per cwt. Most northern live trade was from $138-$140 per cwt. delivered, and light dressed trade was reported from $220-$224 delivered.
For the week ending March 12, U.S. steer carcasses eased two lb. lighter than the previous week to 917 lb. but are 19 lb. larger than a year ago.
Cow prices rally
Slaughter cows traded mixed last week with D2s rallying more than $2 per cwt. higher, to average $96.39. D3s slipped $3.38 per cwt. lower to average $81.38. D2 cow prices rallied higher for a seventh week, and last week were 10 percent higher than the five-year historic average.
Dressed cow bids rallied $3 per cwt. higher than the previous week with reports from $183-$188 per cwt. delivered. Butcher bull prices stalled for the first time this year, trading modestly lower, but averaged $117.90 per cwt.
Lightweight calves pressured
Lacklustre interest and the uncertainty of available grain imports last week pressured the feeder market in the West, especially for lightweight calves. British Columbia calves 400-500 lb. were down $7 per cwt. with prices for midweight calves steady.
Heavy cattle in B.C. were up $4-$6 per cwt. In Alberta, and prices were down $1-$7 per cwt. across the board with calves 300-400 lb. pressured the most. Midweight calves were steady to slightly lower.
Trade was stronger moving east across the Prairies. In Saskatchewan, lightweight calves traded $4-$6 per cwt. higher than the previous week. Like Alberta, midweight prices in Saskatchewan were steady to slightly lower, but yearlings 800-900 lb. were up $4 per cwt. Prices for all weights were down in Manitoba, but 400-500 lb. calves fared best, down less than $1.
Auction volumes in Western Canada were down 6,000 head last week at 46,191 head and were down four percent from the same week last year. For the week ending March 12, Canadian feeder cattle exports to the U.S. totalled 5,753, up 226 percent from the same week last year. Year-to-date feeder exports were up 393 percent at 60,568 head, up 442 percent in the West and 200 percent in the East. This is the highest year-to-date volume of exports since 2015.
Seasonal demand for grass cattle is expected to improve and support prices for midweight feeders. Negative feeding margins in Canada will keep calves flowing south.
Cut-out prices rise
In U.S. beef trade, the Choice cutout firmed by more than US$5 per cwt. last week, averaging $262.41, while Select averaged $252.59, up by $2 per cwt.
