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 price at new high
Alberta and Ontario fed prices have been moving in opposite directions lately. Ontario fed prices have dropped around $10 per hundredweight from their highs in June, while western Canadian fed prices continue to edge higher, setting new annual price highs last week.
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Though sale volumes were light, competition on the cash market was decent with all three western Canadian packers bidding on cattle. Dressed sales were reported at mostly $300 per cwt. delivered. Cattle were being scheduled for mid-September delivery.
Slaughter volumes have been disappointing. This is the sixth consecutive week that western Canadian fed slaughter has been below last year.
Western Canadian steer carcass weights increased four pounds to average 912 lb. For the first half of August, carcass weights are record large.
For the better part of this year, the economics of adding weight to market-ready cattle was tough to justify because the cost of gain was higher than the fed cattle price. With barley prices coming down and the fed market strengthening, the situation has changed and the economics of adding additional weight have improved.
Business in Ontario was quiet. There were reports that packers were not bidding on cattle last week. Year to date, eastern Canada fed slaughter is down 2.4 percent compared to 2021. Ontario fed prices usually trade at a premium to the Alberta market during the summer and go to a discount in the fall.
South Korea has recently opened a 100,000-tonne duty free quota on imported beef, which should bode well for Canadian beef exports.
In the United States, ddressed sales in Iowa and Nebraska ranged from US$230-$238 per cwt., $3-$6 per cwt. higher than the previous week. Live sales in the northern feeding states ranged from $146-$151 per cwt., $2 per cwt. stronger.
Most of the live sales in Texas and Kansas were reported from $140-$142 per cwt. Cattle from Kansas were being shipped north to Nebraska for slaughter.
For the week ending Aug. 6, U.S. beef cow slaughter totalled slightly more than 73,000 head, 11 percent higher than last year. U.S. calf prices are at the highest point since early 2016.
Cow market steady
Non-fed cattle traded steady to stronger last week with slaughter cow prices sideways and butcher bulls higher. D2 prices averaged $113.30 per cwt. and D3s closed the week at $99.63 per cwt. Alberta D2 cows continued to trade comparable with U.S. utility and were around $1 per cwt. stronger than Ontario.
Dressed cow bids were fully steady with the previous week ranging from $216-$221 per cwt. delivered. Butcher bull prices firmed $1.17 per cwt. higher last week to average $131.33 per cwt. Butcher bulls have traded above $130 per cwt. for an eighth straight week.
Year to date, slaughter bull exports were eight percent larger, totalling 22,076 head.
Feeder prices rise
Western Canadian auction volumes are trending larger, but strong demand continues to outpace supplies. Prices for all types of feeders rallied higher with double digit gains reported for calves less than 600 lb. Steer calves from 500-600 lb. saw the strongest average prices since March 2016 and the steer/heifer price spread was the second widest on record at $40 per cwt.
Premiums continued last week for deferred fall delivery calves from September to November. Large feeders heavier than 700 lb. to place against the first quarter fed market saw good demand and significantly stronger prices. Yearlings heavier than 900 lb. traded generally steady on limited offerings and quality.
Alberta auction volumes were 26 percent larger than the previous week at 18,472 head and were 56 percent smaller than the same week last year. Canadian feeder exports to the U.S. for the week ending Aug. 6 were down seven percent from the previous week to 3,540 head.
Pasture conditions are deteriorating across the Prairies, and yearling volumes at auction will trend larger. The volume of yearlings coming off grass to auction is anticipated somewhat lighter than historically because many have already been forward contracted.
Cow-calf pairs traded in a range of $1,850-$2,600.
U.S. beef trade
U.S. Choice cutouts were one percent higher than the previous week at US$264.39 per cwt. Select cutouts were unchanged at $237.47.
