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.
Packers make buys
All three packers bought cattle last week on the western Canadian cash market. Dressed sales were reported at mostly $275 per hundredweight delivered, fully steady with the previous week. Cattle that traded last week were scheduled for delivery in the weeks of April 25 and May 2.
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Alberta fed prices were at a discount to the Ontario market, but cattle from Saskatchewan are coming west for slaughter. Over the past four weeks, western Canadian fed slaughter averaged 43,761 head per week compared to 41,003 head per week last year.
The year-over-year increase in slaughter volumes has been primarily due to historically large heifer volumes. Over the past four weeks, heifer slaughter is 11,500 head larger than 2021 and 24,000 head larger than 2020.
Yearling supplies are winding down, and fed calves are starting to hit the market. As more fed calves enter the slaughter mix, carcass weights should decline. Over the past five years, the average decline for western Canadian steer weights from first half of the year highs to spring lows is 81 pounds. This would put carcass weights on track to bottom at 852 lb.
In Ontario, dressed sales ranged from $290-$293 per cwt. delivered, fully steady with the previous week.
On a monthly basis, in 11 of the past 15 years, fed prices have strengthened from March to April. The average increase over those 11 years is three percent. A lot of the calves placed against the second quarter have break-evens in the mid to upper $180s per cwt.
In the United States, dressed sales in Nebraska ranged from US$221-$225 per cwt., steady to $3 per cwt. higher than the previous week. Sales in Nebraska were reported from $138-$140 and Iowa traded from $139-$143.50 per cwt.
Northern live sales were steady to $2 higher than the previous week. Texas and Kansas traded at $138 per cwt., fully steady. For the week ending March 18, beef cow slaughter totalled slightly more than 74,000 head.
Feeder prices firm
Alberta feeder prices firmed more than $2 per cwt. higher last week on tightened supplies and renewed grass interest. Lighter steer calves from 400-600 lb. rallied $2-$3 per cwt. higher than the previous week, and similar weight heifers traded steady to $4 per cwt. higher.
Heavier calves from 600-800 lb. trended steady to $2 per cwt. stronger, while large feeders heavier than 800 lb. traded mixed with steers steady to $1 lower and heifer prices firmed $2-$3.50 per cwt. higher. Calf prices softened from west to east on the Prairies two weeks ago but homogenized last week with 600-700 lb. steers from Alberta to Manitoba all reported in a tight $210-$232 per cwt. trade range.
Auction volumes were steady with the previous week, totaling 25,577 head and were 33 percent larger than the same week last year. Year-to-date auction volumes are up two percent from year ago, totalling 367,318 head. Feeder exports to the U.S. for the week ending March 19 aligned 33 percent higher than the previous week to 7,645 head. Year-to-date feeder exports continue significantly larger, up 384 percent from year ago at 68,213 head.
Slaughter cows in demand
Good domestic and export demand continued to outpace moderate non-fed supplies last week, and prices strengthened. D2 slaughter cows traded steady, averaging $97.17 per cwt., and D3 cows realigned almost $5 per cwt. higher to average $86.20. Slaughter cows established new annual highs, and prices were the highest seen since July 2021. Dressed cow bids firmed $2 per cwt. higher than the previous week, ranging from $185-$190 per cwt. delivered.
Butcher bull prices last week traded at the highest level since summer 2017, up $3.21 per cwt. from the previous week to average $121.10 per cwt. Non-fed prices should continue to strengthen as supplies tighten and grilling season demand improves. Rising inflation is also driving more cash-strapped consumers to the ground beef freezer.
U.S. cutouts higher
In U.S. beef trade, cut-out values gained momentum with Choice up almost US$6 per cwt., averaging $268.39, and Select surged $9.75 per cwt. higher to average $262.34. Total U.S. cattle slaughter is estimated three percent lower with the previous week at 639,000 head and six percent larger than the same week last year.
