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 prices steady
The Alberta fed market saw light to moderate mid-week cash trade, with dressed prices steady to $1 per hundredweight stronger than the previous week. The bulk of sales were reported dressed at $390 per cwt. delivered.
Read Also
Saskatchewan, Manitoba sign Arctic Gateway deal
Saskatchewan, Manitoba and Arctic Gateway Group have signed an MOU to strengthen trade through the Port of Churchill.
Light live trade was steady to stronger than rail sales from $232-$233.25 per cwt. Last week’s cash basis strengthened modestly from the previous week, but continues to be seasonally weak at around -$16 per cwt. This encouraged U.S. buying interest but few, if any, cattle traded south.
Weighted average steer prices firmed $1 per cwt. higher than the previous week to $233.19 per cwt. Kill schedules remained static from the end of September to second week of October. Western Canadian fed slaughter for the week ending Sept. 9 were fully steady with the previous week at 42,172 head. Year-to-date, western fed slaughter was down seven percent from the same week last year to 1,450,065 head. Year-to-date fed cattle/cow exports were down five percent from year ago, totaling 308,292 head.
Ontario saw light to moderate trade last week, with dressed prices firming $3 per cwt. higher than the previous week to $392 per cwt. delivered.
After 10 weeks of price declines, weekly steer prices have firmed higher for the second week in a row. In three of the past five years, monthly fed steer prices strengthened from September to October and the five-year average monthly price firmed one percent higher.
In the U.S., business was slow to develop and sale volumes were limited. Scattered live trade in the south saw prices US$3 per cwt. higher than the previous week at $183 per cwt. In the north, light live trade was $1-$2 per cwt. stronger than the previous week from $184-$185 per cwt.
Dressed sales firmed around $2 per cwt. higher, with most trade at $292 per cwt. delivered.
U.S. steer carcass weights for the week ending Sept. 2 were two pounds heavier than the previous week at 908 lb. and were four lb. heavier than a year ago. Total U.S. slaughter last week is estimated 13 percent larger.
Cows come to market
With the calf run underway, producers are wasting no time getting their culls to town. Non-fed volumes increased and a lot of exposed cows are at the market.
With more numbers on offer, packers have gained leverage over the cow/calf segment. Alberta cow prices have moved to a discount against both the U.S. and Ontario market. Last week butcher cow prices traded $1-$5 per cwt. lower through commercial auction facilities, while dressed prices were $5 per cwt. weaker. D2s averaged $138.61 and D3s averaged $127.86 per cwt.
From their highs in June, cow prices have dropped 12 percent. Over the past 10 years (excluding 2014), the average decline from spring highs to fall lows is 24 percent. Using an historical decline, this would put prices on track to bottom in the $120 per cwt. area, which is not out of the question. Based on both the five-year and the 20-year indices, cow prices historically bottom in late November.
Feeders continue high
Heavier weight feeder prices have started to level off, while calf prices continue to advance. Alberta 350 lb. steer calves averaged just over $500 per cwt. while 550 lb. steers are at $400 per cwt.
Over the past month, Alberta 550 lb. steer prices have strengthened $26 per cwt. Note that, over the past 20 years, 550 lb. steer calf prices have never established second half of the year highs in September. In a bull or upward trending market, it is more common to see second half of the year highs in December.
Western Canadian calf prices have been impressive relative to the Eastern Canadian market. Over the past month, 500-599 lb. steer calves in Alberta have been at a $16 per cwt. premium to Ontario. Over that same time, Alberta 500-599 lb. heifer prices have been at a $42 per cwt. premium compared to Ontario.
Feed grain prices continue to drift lower, while live cattle contracts continue to set new highs.
Choice cutouts soften
In U.S. beef trade, cutouts were mixed. Choice cutouts softened 1.7 percent to US$306.37 per cwt. Select cutouts were fully steady at $268.86. Historical trends suggest that Choice cutouts put in their autumn low close to the summer low.
