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 supplies manageable
Summer-placed yearlings accounted for 20 to 30 percent of last week’s cash offering. Feedlot placements in July and August were well below last year, suggesting market-ready fed supplies should remain manageable in the near term.
Read Also
Canada-U.S. trade relationship called complex
Trade issues existed long before U.S. president Donald Trump and his on-again, off-again tariffs came along, said panelists at a policy summit last month.
Last week, dressed sales were reported from $304-$305 per hundredweight delivered. Cattle were being scheduled for the second half of January’s delivery. Light volumes of Alberta cattle traded to the United States at US$236 per cwt. delivered. Sales to the U.S. were at a $5-$6 per cwt. live premium over local deals.
For the week ending Dec. 11, U.S. imports of Canadian fed cattle totalled more than 8,500 head, the largest volume seen this year. So far in December, a large percentage of the Canadian fed cattle being shipped into the U.S. for slaughter were sold on a formula or a negotiated grid price.
Western Canadian packers have bought few cattle over the past few weeks. Carryover numbers have been an issue, but some producers indicated that cash cattle will be reallocated to meet January contract obligations.
Even though western Canadian steer carcass weights have dropped 20-27 pounds from their highs in October, weights remain record large for December.
Based on the latest weather outlook report provided by Makens Weather LLC, central and western provinces are projected to see the coldest winter temperatures and minimal snow accumulation. If cold persists throughout January, carcass weights could moderate.
In Ontario, dressed sales were reported at $320 per cwt. delivered, fully steady with the previous week.
In the U.S., dressed sales in northern feeding states ranged from US$244-$248 per cwt., mostly steady. Live sales in Nebraska were at mostly $156 per cwt. Sales in the southern U.S. were at $155 per cwt., steady to $1 higher.
Buyers seek feeders
Last week’s break in the weather flushed a large offering of calves to auction, and prices rallied significantly higher on strong year-end buying interest. Light heifer calves from 300-400 lb. have seen the sharpest decline of all feeders from the fall high in September to current lows (down 10.5 percent). This appears to be providing backgrounders with a good bang for their buck, and 300-500 lb. heifer prices surged $11-$13 per cwt. higher than the previous week.
Steer calves from 400-700 lb. traded at new annual highs last week, and larger steers from 600-800 lb. saw prices rally $10.50-$13 per cwt. higher. Large steers heavier than 800 lb. saw a marked premium for deferred February to March delivery.
Alberta feeders generally traded at a premium to Ontario last week. Alberta auction volumes were 28 percent larger than the previous week and were modestly eight percent larger than a year ago.
A good offering of bred cows and heifers also contributed to larger sale volumes. Year-to-date auction volumes were down three percent from the same week last year, totalling 1,643,357 head. Canadian feeder exports to the U.S. for the week ending Dec. 3 were 13 percent larger than the previous week at 3,338 head and were 32 percent lower than the same week last year.
Year-to-date feeder exports were 48 percent larger than a year ago, totalling 192,094 head.
Cow price rises
Non-fed prices rebounded higher last week on reduced offerings and continued good demand. Slaughter cow prices firmed $2.50 per cwt. higher than the previous week, with D2s averaging $84.80 per cwt. and D3s averaging $72.60.
Dressed cow bids realigned aggressively higher to around $170-$175 per cwt. delivered. Some rail trade was reported up to $190 per cwt. delivered for deferred January slaughter.
Alberta D2 cows traded at a $7 per cwt. discount to Ontario last week and the previous week were at a $16.50 per cwt. discount to U.S. Utility cows.
Western Canadian non-fed slaughter for the week ending Dec. 10 was up two percent from the previous week at 10,512 head. Butcher bull prices firmed more than $1 per cwt. higher to average $117.06. Non-fed prices appear to have bottomed out and are expected to gain seasonal momentum as supplies tighten.
U.S. cutouts strengthen
In U.S. beef trade, cutouts ended last week stronger on lower trade volumes. Choice cutouts closed at US$254.30 per cwt. and Select closed at $228.51.
