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.
U.S. offers premiums
The Canadian fed market has been disappointing relative to the U.S. Alberta and Ontario prices continue to move sideways, while U.S. fed prices have rallied around US$6 per hundredweight over the past month.
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Last week dressed sales were reported at $302 per cwt. delivered. Cattle were being scheduled for late November/early December delivery. Light volumes of Alberta cattle traded to the U.S. Depending on freight and dressing percentage, cattle were working back to the $186 per cwt. area f.o.b. the lot.
Sales to the U.S. were at a premium over local deals. Given that, it is surprising that more cattle have not been marketed that way. Truck availability and grading specs are likely two factors limiting producers from selling more cattle into the U.S.
Western Canadian steer carcass weights increased 11 pounds to average 979 lb. This is a new record. Even though carcass weights in Western Canada are larger than the east, Eastern Canada has a higher percentage of yield grade 4/5 cattle compared to the West.
In Ontario, dressed sales were reported from $303-$306 per cwt., steady with limited trade seen last week. Most cattle were being booked for Nov. 7 delivery.
For now, fed cattle supplies are ample but will tighten quite dramatically later this year, given significantly lower placements during the summer.
In the U.S., dressed sales in Iowa and Nebraska ranged from US$232-$236 per cwt., $2-$4 per cwt. higher than the previous week. Live sales in Nebraska ranged from $150-$152, $3-4 per cwt. higher. The last time Nebraska prices averaged over $150 per cwt. was in August 2015.
Live sales in Texas and Kansas were reported from $147-$148 per cwt., $2 per cwt. higher.
With cattle prices at annual highs and beef cutout values near annual lows, processing margins have recently turned negative. Considering tighter margins, packers continue to churn out larger daily and weekly slaughter volumes.
Cow prices steady
A few more non-fed cattle were on offer last week and prices were mixed. D2 slaughter cow prices continued steady, averaging $104 per cwt., while D3 prices eased $1 per cwt. lower at $89.07.
Dressed cow bids seasonally softened to around $200-$205 per cwt. delivered. D2 slaughter cows traded at a $5 per cwt. discount to U.S. utility cows last week and supportive export demand should continue for Canadian non-fed cattle.
Butcher bull prices maintained momentum and firmed $1.21 per cwt. higher to average $131.10 per cwt. Bull prices have traded above $130 per cwt. in 12 of the past 17 weeks. Seasonally larger non-fed offerings are anticipated and prices are expected to soften.
Mixed feeder trade
Alberta feeders traded mixed last week, with calf prices higher and large feeders over 700 lb. traded sporadically softer on reduced quality of lot size. Light steer calves less than 500 lb. rallied $8-$9 per cwt. higher on broad-based good demand for backgrounders and prices were at a modest premium to Ontario.
Larger calves from 500-700 lb. traded steady to $2 higher, whereas large feeders from 700-900 lb. traded steady to $2 lower. Yearlings over 900 lb. traded mixed, with steer prices easing lower on reduced quality. Open replacement quality heifers fueled stronger prices.
Alberta auction volumes were 35 percent larger than the previous week at 76,975 head, but weekly offerings have trended larger than the five-year average over the past three weeks. Year to date auction volumes are down six percent compared with 2021 at 1,149,105 head.
Canadian feeder exports to the U.S. for the week ending Oct. 8 were up 51 percent from the previous week to 2,655 head and were 30 percent lower than the same week last year. Year to date feeder exports were 78 percent larger than year ago totaling 169,829 head.
Annual auction volumes are expected to peak during the first half of November and volumes should ease lower heading toward year end. Calf prices are anticipated steady to firmer through November with year-end strength anticipated in December.
Cutouts rebound
In U.S. beef trade, cutouts rebounded substantially from the previous week. Both Choice and Select cutouts were up almost three percent, with Choice closing at $253.62 per cwt. and Select closing at $222.08.
