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 market steady
There was little pressure to market cattle last week, but the market tone was steady. Dressed bids and sales were reported at $390 per hundredweight delivered, fully steady with the previous week.
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Over the past 10 years, the average fourth quarter price rally (from low to high) stands at 12 percent. This would put fed prices on track to peak at around $260 per cwt. However, a 12 percent rally over the next 60 days is not expected.
Over the past 10 years, the smallest fourth quarter rallies occurred in 2018 and 2022, when prices increased three to six percent This is a more realistic expectation and would put prices on track to peak around $238-$245 per cwt.
Over the past month, western Canadian steer carcass weights have averaged on either side of 960 pounds. For October, this is the second largest weight on record, behind 2022.
In Ontario, dressed sales were reported at $395 per cwt. delivered, fully steady with the previous week. For October, eastern Canadian fed slaughter was the smallest since 2019, while western Canadian fed slaughter was the smallest since 2018.
In the United States, dressed sales in Iowa and Nebraska were at US$292 per cwt., steady to $2 per cwt. higher than the previous week. Live sales in Nebraska ranged from $184-$185 per cwt., steady with the previous week.
Calf and feeder prices have been under pressure from highs during the second half of September as the U.S. feeder index declined $17 per cwt.
Higher cow prices
Non-fed prices stabilized last week, with slaughter cow prices firming higher and butcher bull prices trading fully steady, averaging $154.64 per cwt. Good demand for D2 cows firmed prices $2.24 per cwt. higher to average $138.07, and D3 cows saw a modest $1.28 per cwt. price improvement, averaging $123.63.
Most rail slaughter cow sales were captured in the wide $262-$272 per cwt. trade range. Western Canadian non-fed slaughter for the week ending Oct. 28 was down two percent from the previous week at 8,277 head, and year-to-date volumes are 10 percent larger at 313,248 head.
A large volume of cows continue to be marketed and elevate non-fed harvest levels.
Eastern buying interest
Auction offerings are beginning to moderate, and feeder prices realigned higher. Light calves were the exception, slipping lower on mixed quality and lot size.
The largest week-over-week price improvement was reported for 400-500 lb. calves, with prices rebounding $8.50 per cwt. and $5 per cwt. higher on steers and heifers, respectively. Good demand continued for 500-700 lb. steer calves, and prices firmed $3.75 per cwt. higher than the previous week. Similar weight heifers traded fully steady.
Keen eastern buying interest continues to support strong calf prices across the Prairies. Middle weight 500-600 lb. Manitoba steer calves saw the strongest prices in Canada again last week at a $5 per cwt. premium to Alberta.
The Saskatchewan calf run is in full swing, and large lots of quality 500-600 lb. steers traded around $4 per cwt. higher than Alberta. Larger feeders heavier than 700 lb., to place against the seasonally strong second quarter fed market, saw prices trend steady to stronger.
Weekly Alberta auction volumes were three percent smaller than the previous week at 87,204 head and were down 13 percent from the same week last year. Dry pasture conditions have pulled feeders to auction one to two weeks early, and peak Alberta auction volumes are over. Year-to-date auction volumes are 14 percent larger than a year ago at 1,533,372 head.
Canadian feeder exports to the U.S. for the week ending Oct. 21 realigned 28 percent larger than the previous four-day week to 6,171 head and were 159 percent larger than the same week last year. Year to date, feeder exports were down 17 percent from a year ago, totalling 143,081 head. Feeder offerings are expected to seasonally tighten toward year end in Alberta and Saskatchewan, while ample offerings are anticipated in Manitoba until mid-November.
U.S. cutouts slip
In U.S. beef trade, Choice slipped to $304.53, ending last week down nearly one percent from the previous week. Select cutouts closed two percent softer at $274.34 per cwt.
