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 record shattered
Dressed sales were reported from $397-$400 per hundredweight last week, shattering the old record of $342 per cwt. set in June 2015. Weekly weighted average steer prices firmed modestly to $238.26 per cwt. and heifer prices realigned to $236.41. Delivery schedules vary relative to buyer, with reports from two to five weeks out.
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Recent Nebraska cash market strength and the softer Canadian dollar weakened the Alberta cash basis considerably last week to around -$9 per cwt.
Western Canadian fed slaughter for the week ending May 20 eased two percent lower than the previous week to 38,059 head. Year-to-date western fed slaughter was five percent lower than the same week last year, totaling 810,422 head.
Western Canadian steer carcass weights were the lightest so far this year, down 15 pounds from the previous week to 850 lb. and were 33 lb. lighter than the same week last year. Year-to-date fed cattle-cow exports were down two percent from a year ago, totaling 194,205 head.
Ontario market-ready feedlot supplies are current and feedlot managers were not motivated sellers. The market tone was generally steady to stronger, with limited trade reported from $375-$380 per cwt. delivered.
Modest market ready supplies should remain price supportive and carcass weights are expected to trend lighter before bottoming sometime in late June.
In the U.S., live trade in the South was generally steady to US$1 per cwt. higher than the previous week from $170-$171 per cwt. Northern live trade was $2-$4 per cwt. higher than last week from $180-$182 per cwt. and dressed sales were mostly $4-$5 per cwt. higher than the previous week, with the Nebraska rail average from $285-$286 per cwt. delivered.
U.S. steer carcass weights for the week ending May 13 were four lb. lighter than the previous week at 891 lb. and were fully steady with the same week last year. Last week’s total U.S. slaughter was estimated three percent smaller than the previous week at 625,000 head and two percent lower than year ago.
Cull cow surge
Many cow-calf producers are preparing to turn cattle out to summer pasture and cull cows are being sent to town, resulting in slightly higher non-fed volumes. There have also been a few more grain-fed cows hitting the market.
Demand for non-fed cattle continues strong, with good interest noted from western Canadian packers and feeder cow buyers.
The bright spot of the non-fed market continues to be the cow market. Trading $6 per cwt. higher last week, butcher cows established new record highs. D2 slaughter cows averaged $154 per cwt. and D3s averaged $138.25 per cwt.
Butcher bulls strengthened $2.75 per cwt., to average $161.45, but prices were still $12 per cwt. shy of all-time highs set in 2015.
Canadian cow slaughter for the week ending May 20 totaled just over 8,400 head. Canadian cow slaughter as a percent of total slaughter was 13.9 percent, compared to the three-year average of 12.6 percent. Alberta cow prices are trading at an $18 per cwt. premium to the Ontario market.
Weather affects market
Moisture conditions are top of mind for many producers. Those forced to destock find that calf-feeder prices are at record highs.
Over the past four weeks, Alberta auction volumes were 6,200 head larger than last year and 14,000 head larger than the five-year average. A sharp increase in feeders coming from terminal feedlots is also raising auction numbers. Cattle that would normally be finished out are instead being sold.
It is uncommon to see the largest weekly feeder cattle export volume of the year occur in May, but that is the case. Canadian feeder exports to the U.S. have been higher than last year in four out of the past five weeks. During the first quarter of this year, Canada was a net importer of feeder cattle from the U.S. by 51,800 head.
Cutouts steady
In U.S. beef trade, cutouts trended steady. Choice closed at US$299.94 per cwt. and Select at $284.54. Choice cutouts straddled $300 per cwt. for eight trading days.
