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 rally
Alberta fed prices closed last week at $218.75 per hundredweight, 50 cents lower than the second half of December. Fed cattle prices are the lowest since early April.
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January has not been the friendliest month for cattle feeders. For two consecutive years (2022, 2023) annual price lows occurred in January.
Last week dressed sales and bids were reported from $360-$368 per cwt. delivered. Last week’s Alberta fed cash-to-futures basis was reported at -$9.56 per cwt. compared to the five-year average of -$7.82 per cwt. Lift times were reported anywhere from late January to mid-March depending on the packer.
Western Canadian steer carcass weights are record large. For the week ending Jan. 6, western Canadian fed slaughter was 0.5 percent higher than last year, yet fed beef production was 7.6 percent larger than last year.
In Ontario, dressed sales were at $375 per cwt. delivered, fully steady with the previous week. Cattle were scheduled for one to two week delivery. Fed cattle prices have dropped $10 per cwt. over the past month. Eastern Canadian carcass weights are below last year.
In the United States, dressed sales in Iowa and Nebraska ranged from US$272-$275 per cwt., steady to $2 per cwt. lower than the previous week. Live sales in the northern feeding states were from $172-$175 per cwt., steady to $1 weaker. Sales in Texas and Kansas were at $172 per cwt., mostly steady.
U.S. beef exports for November were 17 percent lower than last year. Less beef was shipped to Japan, South Korea, China and Taiwan.
Year to date, U.S. beef exports are down 15 percent compared to last year. November beef imports were down from the previous month but 20.5 percent higher than last year. Beef imports from Australia were the largest all year.
Cow prices good
In Alberta, non-fed prices have softened compared to December, with D2 cows averaging $121.64 per cwt., down $6.96 per cwt. compared to the week ending Dec. 22. Compared to the second week of January 2023, this is up by 29.5 percent, making it the highest price recorded in the past four years.
Alberta D3 cows traded at $106.90 per cwt., down $7 compared to week ending Dec. 22. Compared to the second week of January 2023, it surged by 23 percent. This marks the highest price in eight years for the second week of January.
Butcher bulls averaged $142.07 per cwt., down $4.43 per cwt. compared to week ending Dec. 22. Compared to the second week of January 2023, it surged by 14.5 percent. This marks the highest price when compared to the prior eight years for the second week of January.
Western Canada slaughter volumes year to date for the week ending Jan. 6 totalled 48,426 head. Eastern Canada slaughter volumes totalled 10,471 head.
Cold affects auctions
Last week’s Alberta auction volume totalled 18,664 head, down 24 percent compared to the second week in January 2023. It was one of the lowest volumes recorded in the past four years, partly due to colder weather sweeping across parts of North America.
In Alberta, 550 pound steers averaged $379.54 per cwt. last week, up $2.39 per cwt. compared to the week of Dec. 22 and up 26 percent compared to last year.
Similarly, Alberta 850 lb. steers averaged $296.16 per cwt., up $53 cents compared to the week of Dec. 22 and a solid increase of 22 percent when compared to last year.
Heavy weight 900 lb. and heavier steers averaged $283.50 per cwt., up $9.17 per cwt. compared to the week of Dec. 22 and up 21 percent from last year.
Canadian feeder cattle export volumes for the week ending Dec. 30 totalled 675 head, one of the lowest for the year, and down 24 percent compared to the previous year. Feeder cattle export volumes totalled 175,910 head in 2023, an 11 percent decrease from 2022.
Auction volumes were affected by extreme cold weather.
Cutouts rally
In U.S. beef trade, cutouts rallied around four percent higher last week on tighter production. This rally is expected to be short-lived. Choice cutouts ended last week at US$285.89 per cwt. and Select at $269.94 per cwt. Reports of closed roads and the loss of power in some packing plants forced a reduction in slaughter volumes.
