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 steers move higher
A large mix of fed calves and yearlings were on offer last week, and weighted average steer prices rallied more than $2 per hundredweight higher than the previous week. The bulk of weekly dressed trade was reported $3-$5 per cwt. higher than the previous week in a tight $280-$282 per cwt. delivered range. Light live trade was reported at $164.50 per cwt.
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High yielding yearlings took priority over early fed calves as packers looked to boost production heading into grilling season.
Western Canadian fed slaughter for the week ending April 16 was 31 percent smaller than the previous week, totalling 32,429 head due to the Good Friday holiday. Year-to-date fed slaughter volume is up three percent at 630,883 head.
Canadian fed cattle-cow exports to the United States for the week ending April 9 surged 16 percent larger than the previous week to 11,485 head and were 17 percent larger than the same week last year. Year-to-date export volumes are up 11 percent to 150,346 head.
The Ontario market tone strengthened last week. Average steer prices firmed almost $1 per cwt. higher. Last week’s trade range continued flat at $290-$293 per cwt. delivered.
Post-Easter grilling season buying will likely encourage large harvests, and packers may add Saturday shifts. Runaway inflation is fuelling retail resistance for higher priced proteins. It is doubtful that U.S. buyers will look to Canada to top up kill inventory this late in the spring buying season. Ample Canadian market-ready fed supplies will continue, and buyers will maintain leverage.
In U.S. cattle trade, most southern live trade was US$1 per cwt. higher than the previous week at $140 per cwt. Seasonally tight northern supplies and recent winter storms limited market-ready offerings last week and prices strengthened. Northern live trade was reported at a $5.50 per cwt. premium to the south and closed $5.50 per cwt. higher than the previous week at around $145.50.
Dressed prices traded widely from $230-$238 per cwt. delivered but were generally $7 per cwt. stronger than the previous week’s Nebraska rail average at around $233 per cwt. delivered. Steer carcass weights for the week ending April 9 were steady at 909 pounds and were 15 lb. heavier than year ago. Last week’s total U.S. slaughter was estimated almost five percent larger than the previous week at 665,000 head.
Butcher cow prices rise
Butcher cow prices have traded higher in 14 of the past 15 weeks. Over the past month Alberta D2 cows have rallied $8 per cwt., and prices are at the highest since 2017. D2s averaged $105.80 and D3s averaged $94.50 per cwt. Butcher bulls averaged $120.86 per cwt.
On a dressed basis there is a $70-$75 per cwt. difference between cow and fed cattle rail prices. Historically the fed cattle/cow rail price spread does not get much narrower than $60-$65 per cwt. Over the past four weeks, western Canadian cow slaughter has averaged 6,524 head per week compared to the five-year average of 6,963 head. Alberta cow prices have moved to a premium against the Ontario market, the first time since early January.
Alberta auction volume down
For the first three weeks in April, Alberta auction volumes were down 17,000 head compared to last year. This is shaping up to be the second lowest April Alberta auction volume in 30 years.
Calf and lightweight stocker prices traded near annual price highs last week. The soft spot was heavier feeders over 900 lb., with new annual price lows established.
Demand for open replacement heifers seems weaker than last year and could be reinforced by the large number of heifers entering feedlots over the past few months. Heifers trading via electronic and in-house video sales are going to feedlots, with no replacements kept back. Many replacement quality heifers are trading from $1,375-$1,650 per head, similar to prices of the past couple of years.
U.S. feedlots still have a cost of gain advantage over Western Canada, but the barley/corn price spread has narrowed.
U.S. cut-outs soften
In U.S. beef trade, proposed U.S. interest rate hikes and surging inflation have curbed discretionary spending for higher priced proteins, and cut-out values softened last week. Choice averaged US$270.17 and Select averaged $255.68.
