Canfax report

This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattle 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

Prices in the fed market have averaged in the low $230s per hundredweight for the past 10 weeks. October is historically one of the lowest profitable months of the year on the cash market for cattle feedlot margins. However, that has not been the case this year.

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Based on the latest Canfax Trends report, yearling steers (850 pounds) and heifers (750 lb.) placed in March/April and put on the cash market in October had a positive average feedlot margin around $140 per head. The last time feedlot margins were positive for yearlings placed against the October fed market was in 2014.

Light cash trade was reported last week, with all three western Canadian packers buying cattle. Dressed sales were reported at $390 per cwt. delivered.

Western Canadian fed slaughter for the holiday shortened week (ending Oct. 14) totalled 35,952 head, 14 percent smaller than last year. With reduced slaughter rates, Canadian fed beef production for the first half of October is the smallest since 2018.

In Ontario, dressed sales were reported at $395 per cwt. delivered, fully steady with the previous week. Year to date, eastern Canadian fed slaughter is the smallest since 2015.

In the United States, dressed sales in Iowa and Nebraska ranged from US$292-$294 per cwt., $2 per cwt. higher than the previous week. Live sales in the northern feeding states ranged from $186-$187 per cwt., while sales in Texas and Kansas were reported from $184-$185, $1-$2 per cwt. stronger.

For the week ending Oct. 7, U.S. beef cow slaughter volumes totalled slightly more than 73,000 head, eight percent below last year. Though slaughter volumes remain below last year, cow slaughter volumes are still historically large. For the beginning of October, this is the fourth largest beef cow slaughter over the past 25 years.

Cows up, bulls down

Non-fed prices traded mixed last week, with slaughter cows higher and butcher bulls lower. D2 cows rebounded $1.86 per cwt. higher to average $134.29 per cwt. and D3 prices firmed $1.50 per cwt. higher to average $122.86.

Dressed cow bids were steady to stronger in a $262-$272 per cwt. range. Butcher bull prices slipped almost $4 per cwt. lower to average $154.27.

Western Canadian non-fed slaughter for the four-day week ending Oct. 14 was eight percent smaller than the previous week at 7,379 head and year to date was nine percent larger, totalling 296,539 head.

Slaughter cow offerings at auction are ample, and non-fed cattle made up 17 percent of the total western Canadian weekly kill. Increased slaughter cow marketings are anticipated and supplies are expected to outpace demand, so prices will likely trend lower into November.

Plenty of feeders

Feeder prices stabilized last week on ample offerings following three weeks of price declines. Light calves from 300-500 lb. traded mixed with steer prices steady to stronger, while heifers trended steady to softer.

Prices for 500-800 lb. feeders strengthened from Alberta east as proximity to Ontario narrows. Manitoba calves from 500-600 lb. saw the strongest prices in Canada last week, with a $10 per cwt. premium to Alberta and around a $7.50 per cwt. premium to Saskatchewan.

Large calves from 650-750 lb. saw a $10-$12 per cwt. premium over spot for deferred January delivery. Recent softer purchase prices and reduced feed costs significantly improved profitability last week, particularly on 750-850 lb. short-keep and yearling heifers placed against the second quarter fed market.

Large 800-900 lb. Alberta feeders saw prices rally over $6.50 per cwt. higher than the previous week. Yearlings over 900 lb. saw prices ease lower across Canada on reduced lot size and quality.

Weekly Alberta auction volumes were 37 percent larger than the previous week at 93,773 head and were 22 percent larger than the same week last year. Year to date, auction volumes were 18 percent larger than a year ago, totalling 1,356,035 head.

Canadian feeder exports to the U.S. for the week ending Oct. 7 surged 52 percent larger than the previous week at 5,690 head and were 114 percent larger than the same week last year. Year to date, feeder exports were 22 percent lower than a year ago, totalling 132,075 head.