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.
Lower fed prices
Alberta fed prices trended lower last week on waning cash market leverage. The bulk of trade was reported dressed from $380-$385 per hundredweight delivered, steady to $5 per cwt. lower than rail bids seen the previous week.
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Weighted average steer prices eased $1.46 per cwt. lower than the previous week’s market tone, averaging $228.19. Heifer trade was comparable with steers but sale volumes were limited.
Alberta fed steer prices last week were the lowest seen since the end of April. The cash basis continues to converge with the historic November five-year average, strengthening to an estimated -$14.28 per cwt. and will likely discourage future U.S. buying interest.
Western Canadian fed slaughter for the week ending Nov. 18 was down nine percent from the previous week at 39,840 head. Year to date Western fed slaughter was six percent lower than the same week last year to 1,868,961 head.
Fed cattle/cow exports to the U.S. for the week ending Nov. 11 have trended larger over the past three weeks to 13,812 head and were 30 percent larger than year ago.
Moderate Ontario steer trade saw prices steady with the previous week at $233.65 per cwt. Dressed sales were reported from $388-$395 per cwt. delivered.
Packers have secured ample out front slaughter inventory for the remainder of 2023 and sluggish cash market interest will likely continue. Improved holiday buying should help firm whole beef prices modestly higher.
In the U.S., buyers and sellers got a few cash cattle traded before Thanksgiving, with live prices US$1 per cwt. lower than the previous week at $177 in most feeding areas. Most Northern dressed sales were $2 per cwt. lower than the previous week at $280 delivered.
Due to the Nov. 23 holiday, various USDA reports were not available for weekly comparisons.
Lower auction volume
Auction volumes in all provinces have tightened dramatically. As the calendar turns to December, bred sales will be highlighted. Last week total auction volumes in B.C, Alberta, Saskatchewan and Manitoba were 43,000 head below last year.
Over the past month, 550 lb. heifer calves have been trading at a $53 per cwt. discount compared to steers. Heifer calves have a $2 per cwt. cheaper fed price breakeven compared to steers based on Canfax trends data.
The tough spot on the market has been heavier weight feeders. Over the past month 900+ lb. steer and heifer prices have declined $10 per cwt. Prices are at the lowest since late June-early July.
A few herd dispersals were noted last week and demand is strong with good out-of-province buying interest. Interest for younger second-third calving cows was good with sales at the top end of last week’s trading range.
Bred heifers traded from $2,450-$3,800 per head, averaging $3,325. Prices are $1,300 per head higher than a year ago. Few bred heifers are going to the feedlot, and even middle aged to older cows that would have been a tough sell last year are finding homes this year.
Seasonally, bred cattle strengthen from November to December.
Lower cow prices
After a strong October, butcher cow prices struggled in November, declining more than $13 per cwt. Alberta cow prices are trading at the lowest point since early March. D2 cows averaged $122.28 per cwt. last week and D3s averaged $110.20.
The opposite has occurred in Eastern Canada as Ontario cow prices have rallied $13 per cwt. Alberta cow prices recently moved back to a discount against the U.S. market. Western Canadian cow slaughter for the week ending Nov. 18 totaled just over 8,900 head, five percent lower than last year. This was the first time in 15 weeks cow slaughter volumes have been below last year.
Despite larger cow slaughter volumes in Western Canada over the past few months, Canadian cow exports to the U.S. were above last year for August and September. For the month of September, Canadian cow exports were the largest since 2015.
Non-fed volumes through commercial auction facilities have started to moderate. Cow prices usually strengthen from late November to early December.
Shortened U.S. week
In U.S. beef trade, Choice cutouts closed Nov. 22 at US$297 per cwt. with Select at $267.62. Choice cutouts have seen a small pop, rebounding $3 per cwt.
