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 fed price highs
Canadian fed cattle prices rallied to historic highs last week. Active Alberta fed trade saw dressed prices surging $6 per hundredweight higher than the previous week, marked at $348 per cwt. delivered.
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Average steer prices were $4 per cwt. higher than the previous week at $207.90 per cwt., and both steer and heifer prices have now surpassed record highs set in 2015. Most cattle traded last week were scheduled for week of March 27 slaughter.
Western Canadian fed slaughter for the week ending March 11 was one percent larger than the previous week at 41,902 head, while non-fed slaughter eased five percent lower. Year-to-date western fed slaughter was two percent lower than year ago, totalling 412,370 head.
Ontario fed prices also surged to new record highs last week with steers and heifers averaging $211.59 per cwt. and $209.34 per cwt., respectively. The bulk of sales were reported $3-$5 per cwt. higher than the previous week from $353-$355 per cwt. delivered.
Market-ready supplies should remain manageable until more fed calves become market ready in mid-April. From March to April, monthly fed prices have strengthened in seven of the past 10 years.
In the U.S., financial sector instability spilled into commodities last week, and cash market buying interest was lacklustre. A moderate volume of live trade developed in the south, with prices steady to US$1 per cwt. lower than the previous week from $164-$165 per cwt. Northern live trade was generally $1 per cwt. lower than the previous week at $164 per cwt., and dressed sales were $1 lower at $264 per cwt. delivered.
For the week ending March 4, winter weather and deteriorating pen conditions pressured steer carcass weights three lb. lower than the previous week and 20 lb. lower than a year ago to 899 lb.
Total U.S. slaughter is estimated to be one percent lower than the previous week and a year ago at 631,000 head.
Impressive cow prices
March was an impressive month for the non-fed market. Over the past three weeks, D2 cow prices have rallied $18.50 per cwt., while butcher bulls have increased $4 per cwt. Both butcher cow and bull values are at the highest point since September 2015.
Since the start of the year, butcher cow prices have rallied 41 percent. This is the largest first quarter rally in more than 15 years. Last week D2s averaged $132.08 per cwt. and D3s averaged $113.30.
From a regional perspective, year-to-date cow slaughter in Western Canada is 18 percent larger than last year, while eastern Canadian cow slaughter is down three percent. Though eastern Canadian cow slaughter is below last year, volumes remain historically larger. Year-to-date eastern Canadian cow slaughter is 22 percent larger than 2021 and 47 percent larger than 2020. Given higher prices last week, Alberta cows are trading at par with the U.S. market and at a premium to the Ontario market.
Premium calf prices
Since the start of the year, calf prices have advanced $30 per cwt., while heavier weight feeders have generally chopped sideways. Alberta steers 900 lb. and heavier have been stuck in an $8 per cwt. trading window, with prices ranging from $232-$239 per cwt.
Last week, Alberta 800-900 lb. heifers for May delivery traded on either side of $250 per cwt. Heifers for May delivery traded at roughly a 10 percent premium compared to the spot market. Year-to-date Alberta calf (550 lb.) prices have been at a $14 per cwt. premium to the U.S. market, while feeder (750 lb.) cattle prices have been at a $16 per cwt. premium. Strong prices in Western Canada have limited export demand.
Over the previous four weeks, Canadian feeder exports have averaged 2,319 head per week compared to 8,035 head per week last year.
The bred cow market was lightly tested. There were a couple dispersals, but there have been more herd reductions as producers send their late calving cows to town. Bred cows traded from $1,725-$2,425 per head, averaging $2,035. Prices are $600 per head higher than last year.
Cutouts steady
In U.S. beef trade, Choice cutouts trended steady with the previous week in a tight US$284-$286 per cwt. range. Select cutouts were down 1.6 percent from the previous week, closing at $271.76 per cwt.
