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 price firms
Weekly Alberta fed steer prices have firmed $20.76 per hundredweight higher over the past six weeks and added around $300 per head to market value. The bulk of trade last week was $5-$6 per cwt. higher than two weeks ago at $410 per cwt. dressed in a fully $408-$412 per cwt. delivered trade range.
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Weighted average steer prices firmed $3.75 per cwt. higher than two weeks ago to average $245.60 per cwt. Thin heifer trade was comparable with steers, but a repeatable weekly price trend was not fully established.
Western Canadian fed slaughter for the week ending June 3 realigned eight percent larger than the previous week to 38,617 head.
Year-to-date western fed slaughter was down six percent from the same week last year, totalling 884,687 head. Western Canadian steer carcass weights firmed eight pounds heavier than two weeks ago to 850 lb., but remained 30 lb. lighter than the same week last year.
Fed cattle/cow exports to the United States for the four-day week of May 27 were not surprisingly 22 percent lower than the previous week at 5,629 head and were 29 percent lower than the same week last year. Year-to-date fed cattle/cow exports were three percent lower than a year ago totalling 207,066 head.
Early week Ontario trade started out $5 per cwt. higher than two weeks ago at $405 per cwt. delivered. As the week progressed, prices rallied to $410-$415 per cwt. delivered, $10-$25 per cwt. higher than two weeks ago. The weighted average Ontario steer price was fully steady with Alberta at $245.47 per cwt.
In the U.S., early southern live trade started out at US$180-$182 per cwt. and firmed by week’s end to $185-$186 per cwt., $8-$11 per cwt. higher than two weeks ago. Northern live trade was mostly $4-$6 per cwt. higher than the previous week, from $189-$192 per cwt., and weekly dressed sales surged $10-$12 per cwt. higher than two weeks ago.
U.S. steer carcass weights for the week ending May 27 were two lb. lower than three weeks ago at 883 lb. and were one lb. heavier than a year ago.
Total U.S. slaughter last week is estimated to be eight percent larger than two weeks ago at 621,000 head and seven percent lower than a year ago.
Drought prompts sales
Dry conditions across parts of the Prairies have prompted producers to send culls to market. Western Canadian packer competition on cows through the sale ring has moderated.
Butcher cows traded $1-$2 per cwt. lower last week. D2s averaged $154.80 and D3s averaged $138.50. Butcher bull prices have averaged in the low to mid-$160s per cwt. for the last month, and last week averaged $164.36.
For the week ending June 3, Canadian bull slaughter totalled 475 head, 63 percent larger than last year. Year-to-date Canadian bull slaughter is 28 percent larger than last year and is the largest slaughter volume since 2017.
Over the past month, Ontario cow prices have risen $13 per cwt., setting new record highs.
Feeder market steady
The market tone was steady to stronger on all classes of cattle, with the largest week-over-week price gains noted on heifers heavier than 700 lb. Some cattle that have been out grazing for the past 30 days are being sent to market.
In addition, heifers that have been exposed to bulls are also being sold on the feeder market. In recent weeks, the 850 lb. steer/heifer price spread has ranged from $27-$30 per cwt., one of the widest price spreads seen this year.
In April and May, Ontario feedlots were quite active on the western Canadian stocker market. Eastern Canadian buying interest has recently shifted, becoming more active on steers weighing more than 800 lb.
Cow-calf pair volumes have been much larger than normal for this time of the year. Demand from cow-calf producers remains limited. Quite a few of the cow-calf pairs on offer are likely going directly to the feedlot where they will be drylotted over the summer. Last week, cow-calf pairs averaged $3,000 per pair, $160 per pair lower than three weeks ago.
U.S. cutouts jump
U.S. cutouts exploded this week. Choice cutouts rallied over seven percent higher, closing at US$328.73 per cwt. Select jumped more than six percent and crossed the $300 per cwt. threshold, closing at $304.10 per cwt.
