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 prices rise
Alberta fed steers moved still higher last week, up $2.49 per hundredweight to $194.10, while fed heifers held steady at $192.93.
This is the ninth consecutive week of steer gains for a total of $12 per cwt., and prices are now within $9 per cwt. of the all-time high set in May 2015.
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Analysts are impressed with the February market, saying it’s rare to see price momentum from January to February.
Trade was light last week. Dressed sales ranged from $325 to $327 per cwt. delivered. Most cattle traded are scheduled for March 6 and March 13 delivery.
In the last few weeks Alberta fed prices have been at an $18 to $20 per cwt. discount to Nebraska. Basis in the first half of February is the weakest since 2005.
U.S. packer interest in the western Canadian cash market is low, but light volumes sold south on a formula price.
Western Canadian fed slaughter was just more than 40,000 head, which is about two percent lower than last year and the second week in a row that slaughter volumes were lower than last year.
Ontario dressed sales were $328 to $330 per cwt. delivered, steady to $2 higher. Most cattle will be picked up in one to two weeks. The TruHarvest slaughter plant in Ontario stopped taking slaughter cattle at the end of January and reported to the Canadian Food Inspection Agency it has suspended operations until further notice.
The spring market outlook suggests that fed prices are on track to peak around $214 per cwt. if marketing volumes stay strong. That estimate is based on data showing the average increase is 15 percent when first-half lows occur in January.
Non-fed make gains
Prices for non-fed cattle gained last week as well on large numbers and good demand for grind and trim. Slaughter cows went more than $2 per cwt. higher, and rail bids were steady at $200 to $205 per cwt. delivered. Butcher bulls firmed $2.50 per cwt. higher to average $123.61 per cwt.
Non-fed slaughter ending Feb. 4 was five percent lower than the previous week, but year-to-date slaughter is 23 percent ahead.
Alberta D2 slaughter cows usually strengthen in the first half of the year and last week were within $3 per cwt. of last year’s first-half high of $106.80 per cwt. D2 cow prices are $104 per cwt., and 54 percent of the Alberta fed steer average. There is room for market upside as supplies tighten.
Feeder prices surge
Feeder prices surged sharply higher last week on moderate offerings. Light grass calves from 300 to 400 pounds rallied $12 to $13 per cwt. on anticipated strong late summer demand for a limited supply of yearlings. The August 2023 price projection for 850 lb. steers with a -$1.36 basis is estimated $37 per cwt. higher than a year ago.
As Canadian barley prices soften, feeding margins improve. Steer calves 400 to 700 lb. were $7 to $9.50 per cwt. higher, while similar weight heifers gained $2 to $4.50 per cwt. Large feeders heavier than 700 lb. were generally $4 to $7 per cwt. higher than the previous week.
Auction volumes were 34 percent lower and 22 percent smaller than the same week last year. Year-to-date auction volumes are seven percent lower year over year. Canadian feeder exports south are down 33 percent year-to-date.
Exports increase
Canadian live exports to the United States were 712,000 head in 2022, or 16 percent above the previous year. Western Canadian exports were 24 percent higher and the largest since 2014, while eastern exports were 14 percent smaller and the smallest since 2006.
Feeder cattle exports were 173,500, which is 36 percent higher than 2021 and 15 percent above the five-year average. Annual export volumes were highest in February, and second-half exports slowed on improved pasture conditions.
Fed cattle exports ended the year on an upward trend with 319,300 head going south. That is 18 percent higher than the previous year and seven percent higher than the five-year average.
Non-fed exports totalled 219,100.
U.S. prices stabilize
U.S. choice cutouts bumped up $4.19 last week to close at $269.29, while Select held steady at $254.01 per cwt. Cutouts have stabilized and are expected to trend sideways through early spring.
