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.
New price highs
Closing at $203.90 per hundredweight and $210.13 per cwt., respectively, both western and eastern Canadian fed steer prices set new all-time highs.
Since the start of the year, Canadian prices have risen $17 per cwt. In Western Canada, dressed sales were reported at $342 per cwt. delivered. Cattle were being scheduled for the second half of March delivery. Lift times are tightening as packers were buying cattle for the second half of March as well.
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U.S. packer interest on the western Canadian cash market was quiet. However, a few Alberta fed cattle were marketed to the United States. These cattle were sold to the U.S. packer on a formula price. Over the past two years, the majority of Canadian fed cattle that were exported to the U.S. were contract cattle, as they account for 80-90 percent of total exports.
In Ontario dressed sales ranged from $350-352 per cwt. delivered, $8 per cwt. higher than the previous week. A few Ontario cattle were marketed to the U.S. Depending on freight and dressing percentage, these cattle are working back to around $217 per cwt. f.o.b. the feedlot. Cattle that traded to the U.S. were at an $8 per cwt. premium over local deals.
In the U.S., dressed sales in Iowa and Nebraska were at US$265 per cwt., while live sales were at $165, fully steady with the previous week. Sales in Texas and Kansas were also at $165 per cwt., fully steady.
With smaller slaughter volumes and lighter carcass weights, beef production has been well below last year and recently below the five-year average. This trend is expected to continue as second quarter beef production is forecasted to be down six percent from last year.
U.S. beef exports for January were 17 percent lower than last year and the third month in a row that beef exports have been below last year. In January less beef was shipped to South Korea, China and Hong Kong.
Cow price surges
Non-fed prices strengthened last week with strong demand on a tightened supply. D2 slaughter cows surged sharply $12.80 per cwt. higher than the previous week to average $126.30 per cwt., and prices were 74 percent higher than the 20-year average. D3 cows rallied $6.70 per cwt. higher to close the week at $107.20.
Dressed cow bids were reported around $7.50 per cwt. higher than the previous week from $235-$242 per cwt. delivered. Last week’s average D2 cow/Alberta steer price spread narrowed to 62 percent.
Butcher bull prices firmed modestly $2.39 per cwt. higher than the previous week to average $139.78 per cwt. Western Canadian non-fed slaughter for the week ending March 4 was five percent larger than the previous week at 8,118 head and year to date was up 19 percent to 81,074 head.
Good feeder prices
A seasonally large offering of feeders saw prices continue higher last week. A couple of special feeder sales with large quality lots commanded a marked premium, and average prices rallied higher.
A limited offering of light calves less than 400 pounds saw good grass interest, and prices surged higher. Calf prices continued to gain price momentum last week and middle weight 500-600 lb. steer prices were $7 per cwt. shy of all-time record highs set in 2015.
Calves from 600-700 lb. rallied around $7 per cwt. higher than the previous week, and larger feeders heavier than 800 lb. traded $3-$4 per cwt. stronger.
Feeder steer prices were comparable across all reporting provinces in Canada last week. Total auction volumes were 46 percent larger than the previous week at 38,579 head and were around eight percent larger than the same week last year. Year-to-date auction volumes were six percent lower than a year ago at 267,084 head.
Canadian feeder exports to the U.S. for the week ending Feb. 25 were steady with the previous week totalling 1,750 head and were 78 percent lower than the same week last year. Year-to-date export volumes were 61 percent lower at 18,546 head.
Cutouts steady
In U.S. beef trade, cut-out values struggled last week. Choice cutouts dropped a slight 1.4 percent to US$284.60 per cwt., and Select cutouts held steady at $276.05. Choice cut-out values are 13 percent stronger than last year and 25 percent stronger than the five-year average.
