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.
Calf run winds down
Fed calf supplies should wind down and yearling numbers are expected to increase in coming weeks. With dry conditions, yearlings were placed into feedlots earlier than normal.
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Sale volumes were too light last week to establish a weighted average fed price, but the market tone was steady to slightly weaker. Dressed sales and bids were reported at $385 per hundredweight delivered.
Over the previous three weeks, western Canadian fed slaughter has ranged from 43,500-44,500 head per week, some of the largest slaughter volumes seen this year.
For the first half of November, western Canadian steer carcass weights are record large and only four pounds shy of the all-time high set last year at 980 lb.
For the first half of November, Canadian Prime and AAA grading has been more than 82 percent. This is the highest quality grade percentage on record.
In Ontario, a weaker price tone was noted. Dressed sales started at $395 per cwt. delivered and by mid-week were reported at $388 per cwt. delivered.
Based on the five-year average, fed prices historically strengthen from now to the end of the year. In nine of the past 10 years, second half of the year highs have occurred in December.
In the United States, dressed sales in Iowa and Nebraska were mostly at US$282 per cwt., steady to $5 per cwt. lower than the previous week. Live sales in all four major feeding states were at $178 per cwt., $1-$3 per cwt. lower.
For the week ending Nov. 4 , U.S. beef cow slaughter totalled slightly more than 79,000 head, the largest weekly volume seen this year. Though volumes are running below last year, slaughter rates remain historically large.
Total U.S. beef exports for September were 18 percent lower than last year. Less beef was shipped to China, Japan and South Korea and Taiwan. Year to date, beef exports are down 14 percent compared to last year. U.S. beef imports in September were 21 percent larger than last year.
Big cow slaughter
Good demand for trim and grind continues to fuel a large non-fed slaughter. Offerings at auction are ample and prices were pressured lower. At $128.10 per cwt., D2 cow prices dropped $5.84 per cwt. from the previous week, the lowest since the second week of March. D3s averaged $114.83.
Rail cow bids eased $5 per cwt. lower to around $245-$255 per cwt. delivered. Butcher bull prices slipped to the lowest level since March, averaging $147.27 per cwt.
Western Canadian non-fed slaughter for the week ending Nov. 11 was fully steady with the previous week at 9,613 head. This was the seventh week this year that western Canadian cow slaughter volume was reported over 9,000 head.
With profitable kill margins, cow slaughter will remain elevated. Ample supply continues to outpace demand and prices are expected to soften.
Feeders trend lower
Deteriorating cattle futures continued to erode hedging opportunities last week, and anticipated lacklustre feeding margins pressured all feeder prices lower, with most trading $3-$6 per cwt. lower than the previous week. Large feeders heavier than 700- 900 lb. traded mixed. Steers plummeted $10-$11 per cwt. lower than the previous week, while similar weight heifers traded $1 per cwt. stronger to $2 per cwt. lower.
Calf and feeder prices have homogenized across the Prairies, and recent premiums for Manitoba in proximity to Ontario feedlots have faded. Alberta auction volumes were 20 percent smaller than the previous week at 60,080 head and were also down 20 percent from the same week last year.
Year to date, auction volumes are 13 percent larger than a year ago, totalling 1,668,571 head. Canadian feeder exports to the U.S. for the week ending Nov. 4 eased 12 percent lower than the previous week to 4,133 head and were five percent smaller than the same week last year.
Year to date, feeder exports were down 16 percent from a year ago, totalling 151,922 head. Auction offerings will continue to tighten, which should be price supportive. Fed cattle marketings for the remainder of the fourth quarter will free up pen space for calves.
Cutouts slide
In U.S. beef trade, cutouts are well into their late autumn slide. Choice cutouts softened 1.6 percent to US$294.72 per cwt. Select was slightly softer at $267.65 per cwt.
