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 steer price rises
Alberta direct cattle sales saw limited buying interest last week, but average steer prices firmed modestly higher. The majority of trade was reported steady to $1 per hundredweight higher than the previous week at $292-$293 delivered dressed.
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Heifer prices were generally comparable with steers, but weekly sale volumes were too slight to establish a trend. Western Canadian fed slaughter for the week ending July 9 realigned 44 percent larger than the previous four-day week to 48,292 head.
Year to date, western fed slaughter was up four percent from a year ago, totalling 1,160,260 head. Canadian fed cattle/cow exports to the United States for the week ending July 2 rebounded six percent larger than the previous week to 8,953 head and were 130 percent larger than the same week last year. Year to date, fed cattle/cow exports were 22 percent larger at 255,271 head.
Average Ontario fed prices eased $2 per cwt. lower last week on lacklustre buying interest. Dressed sales were steady to $5 per cwt. lower than the previous week in a full $313-$315 per cwt. delivered trade range. Most trade was reported at $313 per cwt. delivered and weighted average steers closed the week at $187.50.
In the U.S., live trade in the south was steady to US$1 per cwt. lower than the previous week at $136-$137 per cwt. Most live trade in the north was reported steady to $3 per cwt. lower than the previous week from $144-$145 per cwt. Dressed trade was steady to $2 per cwt. lower than the previous week’s Nebraska rail average from $230-$232 per cwt. delivered.
Cows coming to auction
Non-fed volumes through commercial auction facilities continue to be larger than normal for this time of the year. The market tone was mixed. Dressed cow bids were $2 softer, while prices through the sale ring were more than $1 per cwt. higher.
D2 cows averaged $107 per cwt. and D3s averaged $96.
Through the ring, new annual price highs were established. Over the past 25 years, July has the highest probability of seeing cows establish third quarter highs.
U.S. packers have been active on the western Canadian bull market. Year to date, Canadian bull exports to the U.S. are 17 percent larger than last year, while Canadian bull slaughter is down 19 percent. With the Canadian dollar trading four percent below last year, bull exports are expected to remain strong through the summer. Peak bull export volumes traditionally occur in late August and early September.
U.S. cutouts steady
In U.S. beef trade, Choice and Select cutouts ended the week steady with last week at US$267.75 per cwt. and $241.91 per cwt., respectively. A total of 611 loads traded last week. This is 11 percent lower than last year but 10 percent higher than two weeks ago.
Light feeder trade
Over the past four weeks British Columbia, Alberta, Saskatchewan and Manitoba auction volumes were down 17,000 head compared to last year. Though volumes have been light, the general price trend has been steady to stronger. Heavier weight feeder prices have strengthened at a much faster pace relative to the calf market.
Over the past couple of weeks, 850-pound steers have been trading at the highest point since February 2016 but the calf market (500-600 lb.) has been mostly steady over the past 60 days, averaging in the mid $230s per cwt.
On a cash-to-cash basis, Alberta calf and feeder prices are trading at a discount against the U.S. market. Year to date, Alberta calf prices have been trading at a $12 per cwt. discount to the U.S. market, which is the largest discount since 2015.
Canadian feeder cattle exports continue to run above year ago levels. For the first half of this year, Canadian feeder exports totalled 133,712 head, 41 percent larger than the five-year average and one percent larger than the 10-year average.
Last week, Alberta and Saskatchewan steers heavier than 1,000 pounds for August to October delivery traded from $207-$212 per cwt. Forward delivery prices for late summer/early fall are trading at roughly $5- $10 per cwt. premium over the spot market.
The cow/calf pair market was lightly tested last week, with sales reported from $1,700-$2,500 and averaging $2,100 per pair.
