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 market strengthened
Fed cattle prices have strengthened in 23 of the past 24 weeks. New highs were again established, as weighted average steer prices closed above $240 per hundredweight. It is rare to see prices strengthen through the month of May. Over the past 50 years there have only been two other years where this has occurred. One of those years was in COVID-influenced 2020 and the other was 1973 when fed cattle strengthened from May through to July, and peaked in August.
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Competition on the cash market was good with both major packers buying cattle. Dressed sales were reported from $400-$405 per cwt. delivered.
Year-to-date western Canadian fed beef production is six percent lower than last year. Reduced slaughter rates and smaller carcass weights are contributing to the year over year decline.
For the holiday shortened week, western Canadian fed slaughter totaled just over 35,000 head, 16 percent lower than last year. For the past two weeks, fed slaughter volumes have not only been below last year, but below the five-year average.
Western Canadian steer carcass weights averaged 842 pounds, the smallest they have been since June 2019.
Dressed sales in Ontario were reported from $390-$400 per cwt. delivered, steady to $20 per cwt. higher than sales last week.
In U.S. markets fed prices rebounded sharply, revisiting annual highs. Dressed sales in Iowa and Nebraska ranged from US$285-$292 per cwt., $5-$7 per cwt. higher than the previous week. Live sales in the northern feeding states were from $183-$188 per cwt., $3-$6 per cwt. stronger. Live sales in Texas and Kansas were from $174-$180 per cwt., $4-$9 per cwt. higher.
For the week ending May 20, U.S. beef cow slaughter totaled just under 69,000 head, 17 percent lower than last year. Beef cow slaughter has been below last year for 17 consecutive weeks. Year-to-date beef cow slaughter is 12 percent lower than last year.
Cow prices up
A moderate volume of non-fed cattle were offered at auction last week and prices trended steady to stronger. D2 slaughter cows traded $3 per cwt. higher than two weeks ago to average $157 per cwt. and D3 cows firmed modestly higher to $139 per cwt. Dressed cow bids rallied $5 per cwt. higher last week to a tight $295-$300 per cwt. delivered trade range.
Last week’s average D2 cow/Alberta steer price spread weakened to around 65 percent as the fed market strengthened. Butcher bull prices traded fully steady last week, averaging $161.50 per cwt. Western Canadian non-fed slaughter for the week ending May 26 dipped three percent lower than the previous week at 6,153 head and year-to-date was nine percent larger, totaling 160,129 head.
Strong prices flushed a few more off type cows and pairs to market this week prior to summer turn out. Non-fed prices should continue to be strong as elevated retail beef prices encourage consumer spending to shift to ground beef and competing meats for summer grilling.
Feeders in demand
The cattle complex continued to rally to record heights again last week and feeder prices strengthened on tightening supplies to place against the fourth quarter of 2023 and the first quarter of 2024 fed market.
Grass interest is generally static on uncertain moisture concerns, while the current fed market rally has freed up increased capital for bunk replacements. Light steer calves less than 600 lb. trended $5-$7 per cwt. higher on good eastern demand, while similar weight heifers traded steady. Middle weight steer and heifer calves from 600-700 lb. saw prices around $4-$5 per cwt. higher, while heavier weights traded mixed with steers $5-$9 per cwt. stronger and heifers steady to $3 per cwt. lower.
Weekly auction volumes were 10 percent lower than two weeks ago at 19,161 head and were eight percent below the same week last year.
Canadian feeder exports to the U.S. for the week ending May 20 dipped 14 percent lower than the previous week to 4,328 head and were nine percent larger than the same week last year. Year-to-date feeder exports were 44 percent (49,436 head) lower than a year ago, totaling 62,935 head.
Auction volumes are expected to seasonally tighten and feeder prices are anticipated to be stronger.
Cutouts higher
U.S. Choice cutouts rallied higher last week and ended the week up 2.2 percent to US$306.44 per cwt. Select cutouts were steady with the previous week at $286.32 per cwt.
