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 prices strong
Alberta direct cattle sales established a new annual high last week. Steer prices are the strongest seen since May 2017. Most sales were reported dressed from $300-$305 per hundredweight delivered.
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Feedlots were motivated sellers, marketing heavier cattle in anticipation of future weight discounts. With more days on feed and improved grading, AAA premiums were not broadly offered.
Year-to-date weekly sale volumes continue to track 10 percent below the same week last year. Western Canadian fed slaughter for the week ending Sept. 17 eased five percent lower than the previous week to 42,030 head. Year-to-date western fed slaughter was up one percent, totalling 1,600,254 head.
Canadian fed cattle/cow exports to the United States. for the week ending Aug. 27 were two percent lower than the previous week at 7,830 head and were 14 percent smaller than the same week last year. Year-to-date fed cattle/cow exports were 14 percent larger at 331,444 head.
Light Ontario trade saw dressed prices ease around $1 per cwt. lower than the previous week with sales in a full $303-$307 per cwt. delivered trade range. Heifer trade was thin.
For the first time this year, the Alberta and Ontario cash markets traded at parity.
The Alberta/Nebraska cash-to-cash fed basis has weakened in the past two weeks to -12.86 and, combined with a softer dollar, could attract U.S. buying interest. Feedlots will continue to manage weights more intensively as feedgrain prices strengthen, but carcass weights are still expected to build thanks to good feeding conditions.
In the U.S., light live trade in the south was US$1 per cwt. higher than the previous week marked at $143 per cwt. Northern trade was generally $1-$2 per cwt. stronger than the previous week with live sales reported at $143-$147 per cwt. and dressed trade from $227-$232 per cwt. delivered.
Nebraska rail prices were expected to average around $1 per cwt. higher than the previous week at $228 per cwt. delivered.
Cow prices lower
Non-fed prices were steady to lower last week. D2 cows ended the week $3 per cwt. lower, averaging $101.59 per cwt. D3s averaged $88.88. Butcher bulls were steady, averaging $128.63 per cwt. Rail cows were $2-$3 per cwt. lower than the previous week at $203-$207 per cwt. delivered.
Slaughter bull exports to the U.S. were down eight percent from the previous week. At 28,138 head year to date, this is still 37 percent higher than last year. U.S. utility cows maintained their sideways momentum, down slightly to US$86.22 per cwt.
Weekly U.S. cow slaughter for the week ending Sept. 10 was down nine percent from the previous week. U.S. cow slaughter volumes typically hit their autumn low at this time. Price support for Canadian cows will be limited as U.S. slaughter volumes increase between now and mid-November.
Auctions levels normal
Alberta auction volumes were lower last week, down 37 percent from the week previous. Volumes have realigned closer to seasonal norms. Saskatchewan auction volumes were 41 percent lower, while Ontario volumes were 38 percent higher than the previous week.
Alberta feeder steers were mixed, with lightweight feeders $2-$5 per cwt. stronger. Steers 600-700 pounds were off most significantly, down almost $2 per cwt. after climbing to recent highs above $260. All other weight classes of steers traded within $1 per cwt. of steady.
Medium weight classes of heifers traded mostly steady to stronger, while heavier heifers were $1 per cwt. weaker. Heifers 300-400 lb. saw significant discounts, down nearly $10 per cwt. from last week.
Most weight classes of Alberta steers traded at a price premium to Ontario, except for 800-900 lb. and 900+ lb. weight categories, which traded $6-8 per cwt. weaker. The biggest Alberta-to-Ontario price premiums were on 600-700 lb. steers, with a $10 per cwt. premium.
Price support was seen last week for all weight classes of heifers, with premiums as high as $41 per cwt. on the lightest heifers compared to Ontario. All weights of heifers are trading at a large premium to last year.
U.S. cutouts decline
In U.S. beef trade, Choice and Select cutouts trended along five-year averages and continued seasonal declines. Choice cutouts closed at US$248.40 per cwt., down 1.6 percent, and Select cutouts closed at $222.11 per cwt., down 3.4 percent from the previous week.
