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.
Packers have plenty
Fed prices typically gain seasonal price momentum through the fourth quarter and into the new year. However, packers have ample cattle for the rest of 2022.
Light steer trade was steady with the previous week with local sales steady to $4 per hundredweight lower from $300-$304 per cwt. delivered. The Alberta cash market is trending to be less current, but the historically weak cash basis has rallied U.S. buying interest to limit cash market downside. Cattle that fit U.S. specifications traded at US$234 per cwt. delivered and worked back to around $186 per cwt. f.o.b. the feedlot.
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Alberta fed steer prices have climbed steadily over the past 33 weeks and have trended more than 25 percent higher than the five-year average for 12 straight weeks. Feed barley prices continue to surge higher, and U.S. imported corn is now landing in Alberta to negate feeding losses.
Western Canadian fed slaughter for the week ending Nov. 5 was sharply 19 percent lower than the previous week at 37,118 head. Year to date, western fed slaughter was down one percent at 1,907,066 head.
Western Canadian steer carcass weights were six pounds lower than the previous week to 974 lb. but remain a significant 27 lb. heavier than the same week last year. The U.S. Department of Agriculture reports that fed cattle/cow exports to the United States for the week ending Oct. 29 eased five percent lower than the previous week at 10,391 head and were 22 percent lower than the same week last year. Year to date, fed cattle/cow exports were up 10 percent to 400,810 head.
Light Ontario trade was reported steady with the previous week at $306 per cwt. delivered.
In the U.S., light trade before press time Nov. 10 saw live sales steady with the previous week at US$150 per cwt. in the south and at $153 per cwt. in the north. Scattered dressed trade was fully steady, marked at $242 per cwt. delivered.
Tightening U.S. fed supplies continue to pull cattle futures higher, and cash prices are expected to strengthen as holiday season beef demand intensifies.
Cow price drops
Supply is outpacing demand, and butcher cow prices have dropped $14 per cwt. in the past three weeks. Hay and forage prices, though lower than last year, remain historically high, and many cow-calf producers are sending cull cows to town.
The number of cows on offer has been larger than expected, given many producers culled harder than normal this past spring.
Alberta cow prices are trading at the lowest point since late February. D2s last week averaged $89.79 per cwt., and D3s averaged $78.50. Canadian butcher bull exports to the U.S. have been higher than last year in nine out of the past 10 weeks, and last week prices averaged $122.50 per cwt.
Feeder prices mixed
Alberta 550 lb. steer prices have hovered in the mid $260 per cwt. for the past six weeks, while feeders weighing more than 700 lb. are trading at the lowest point since mid-August. Across the Prairies, Manitoba has the highest calf prices, with 400-600 lb. steer and heifer prices trading at a $6-$8 per cwt. premium compared to the Alberta and Saskatchewan market. The premium in Manitoba is likely due to strong Ontario feedlot interest.
Alberta barley prices continue to trade around $455 per tonne delivered into southern Alberta. During August and September, Alberta feedlots had a cost of gain advantage against the U.S., but now Alberta is at a cost of gain disadvantage to the U.S. by C$40 per tonne.
There are a few more pre-conditioned calves on the market. Larger groups of calves that have been weaned for 30 days or longer are trading at a premium to freshly weaned calves.
Canadian feeder cattle exports to the U.S. totalled 2,708 head, seven percent smaller than the five-year average and 41 percent lower than the 10-year average.
Demand for dispersal cows was good and premiums were paid. On the other hand, middle-aged to older cows were a tougher sell with prices close to slaughter values.
This week bred cows traded from $1,400-2,500 per head, averaging 1,800 per head. Bred cow prices usually increase from November to December, and this is expected to true this year.
U.S. cutouts flat
In U.S. beef trade, Choice cutouts trended sideways, within US$1.25 of $264 per cwt. Select cutouts showed more volatility and closed at $235.22 per cwt. The Choice/Select spread continues to be seasonally strong.
