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.
Steers set record high
There was good demand on last week’s large cash offering, and prices trended steady with the previous week. Most sales were reported in a tight $284-$286 per hundredweight delivered trade range. The weighted average steer set a new annual high and was the strongest weekly average reported since June 2017.
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Supplies of market-ready fed heifer calves have been limited recently. and sale volumes last week were too slight to establish a trend. Once feedlots get kill dates booked for first-cut heavy steers, heifer offerings are likely to increase. Most cattle priced last week were scheduled for the first week of June delivery.
Western Canadian fed slaughter for the week ending April 30 was up three percent from the previous week, totalling 45,512 head. Year to date, the western fed slaughter volume was four percent larger at 723,433 head. Canadian fed cattle/cow exports to the United States for the week ending April 23 realigned 17 percent larger than the previous week to 9,650 head and were 10 percent larger than the same week last year. Year-to-date export volumes were nine percent larger at 168,251 head.
Active Ontario dressed trade last week saw prices rally $5-$11 per cwt. higher than the previous week with most sales reported from $300-$301delivered. Ontario steers also set a new annual high and saw the strongest weekly average since June 2017.
Ample cash offerings are expected this week, but large harvests and potential added Saturday shifts should help grind through inventory. Carcass weights are larger than a year ago and will bolster production. Warmer weather should improve demand for grilling and food service.
In the U.S., southern live trade last week was generally steady with the previous week at US$140 per cwt. Most northern live sales were reported steady to firmer from $145-$146 per cwt. and dressed sales were steady to $1lower than the previous week. Nebraska rail trade was from $230- $232 per cwt. delivered, averaging $231.75 per cwt.
Cow prices modify
After gaining $10 per cwt. over the previous six weeks, butcher cow prices started to level off. D2 cows averaged $106.80 per cwt. and D3s averaged $94.08. Competition on ring cows does not seem as strong compared to previous weeks, and one major packer bought most of the cows.
Although non-fed volumes through commercial auction facilities have been light, western Canadian cow slaughter volumes have been above last year in six out of the past seven weeks. Alberta cow prices have moved back to a premium against the U.S. market. Higher cow slaughter rates are likely due to reduced cow exports to the U.S. over the last month, and more cows were slaughtered domestically.
With flooding in parts of eastern Saskatchewan and Manitoba, more calving culls could appear.
Feeder market eyes drought
Despite record high feedgrain prices, calf and feeder prices continue to trade close to year-ago levels. Much of the Prairies are dry.
Feeder volumes are not large but some grass cattle that would not traditionally be marketed until late summer are coming to market as producers manage stocking rates. Without moisture, the situation could be similar to last year, when grass cattle were placed into feedlots well ahead of schedule.
Over the past four weeks, 850 lb. steer prices have trended sideways, averaging $188-$189 per cwt. Targeting the October fed market, 800-900 lb. steers are being purchased with a breakeven price in the low $190s.
Based on the Canfax Trends data, 850 lb. steers purchased in May have only been profitable one time in the past 10 years. Over those nine years the average loss for yearling steers placed against the October market is a negative $178 per head.
Year-to-date 2022 Canadian feeder cattle exports totalled 95,750 head, the largest since 2015. In March, live cattle imports from the U.S. into Canada totalled 17,369 head, 23,500 head fewer than last year. First quarter feeder cattle imports from the U.S., at 51,099 head, are down 46,500 head compared to last year.
Cutout price drops
In U.S. beef trade, cutouts ended last week lower for both Choice and Select compared to the previous week. Choice cuts were down US$7.42 per cwt. to average $255.18, and Select cuts were down $5.25 per cwt. to average $245.81.
