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 still good
So far this year, western Canadian fed beef production is one percent larger than last year, while fed cattle prices sit around 16 percent higher than last year. More beef is being produced at higher money, which is a positive story for the industry.
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Despite this positive aspect, the western Canadian fed market garnered more negativity in recent weeks, given that fed prices have not kept pace with Ontario and U.S. markets, not to mention large feedlot losses and historically weak basis levels.
Buying interest was noted from all three western Canadian packers, but competition on the cash market was limited. Last week dressed sales were reported from $360-$365 per hundredweight delivered, steady with the previous week.
Western Canadian fed slaughter for the week ending Jan. 27 totalled slightly more than 49,000 head, the largest slaughter since June 2022.
In Ontario, dressed sales were reported from $385-$390 per cwt. delivered, $5-$10 per cwt. higher than the previous week. Cattle were being booked for immediate delivery.
Ontario fed prices are at the highest point since mid-December. Eastern Canadian fed prices are currently trading at a $13 per cwt. live premium over Western Canada. We could see fed cattle from Manitoba and Saskatchewan shipped into Ontario for slaughter.
In the U.S., dressed sales in Nebraska and Iowa were reported from US$277-$280 per cwt., $3 per cwt. higher than the previous week. Live sales in the northern feeding states were from $176-$178 per cwt., $1-$2 per cwt. stronger. Sales in Texas and Kansas ranged from $177-$179, $3-$4 per cwt. higher. Southern fed prices moved to a premium against the north.
In recent weeks U.S. steer carcass weights declined 23 pounds. For the first three weeks in January, U.S. beef cow slaughter is 18 percent lower than last year and dairy cow slaughter is down 24 percent.
Cow prices rise
Alberta D2 cows traded at $130.20 per cwt., up $2.87 per cwt. compared to the previous week. Alberta D3 cows traded at $110.13 per cwt., softening $3.35 per cwt. compared to the previous week. Based on the historical five-year average, Alberta D2 and D3 cows are expected to trend higher in coming weeks.
Alberta butcher bulls traded at $150.56 per cwt., up $3.28. Using the five-year average, butcher bulls are anticipated to trend higher in coming weeks. Rail grade cows through Alberta auction marts popped $5 per cwt. last week, ranging from $255-$260 per cwt., and are at their highest point since mid-November 2023.
Canadian slaughter volumes for week ending Jan. 27 totalled 69,881 head, up 23 percent from the previous week. Year to date, cow slaughter volumes are down 15 percent and bull slaughter is up 11 percent.
Feeder price rallies
Auction volumes held steady last week at 27,899 head, aligned with the five-year average. However, electronic sales softened to 2,928 head, down 32 percent.
Alberta steers and heifers experienced a rally across all weight categories, as did those in Ontario. Alberta 500-600 lb. steers were up $19.18 per cwt. from the previous week to $405.31. This strong rally set a new high for lightweight 550 lb. steers. Alberta 850 lb. steers had a minor surge, up $2.74 per cwt. to $300.27 per cwt.
Alberta 400-500 lb. heifers were up $19.35 per cwt. from the previous week to $349.62. Despite the surge, prices were still down $6.19 per cwt. compared to the last week of 2023. Alberta 800-900 lb. heifers were up $4.40 per cwt. compared to the previous week, to $276.17 per cwt.
Heavyweight heifers continued their upward trend. The Alberta 550 lb. feeder basis was up $4.14 per cwt. to $77.72 per cwt, indicating strong local demand and constrained supply.
On the eastern side, Ontario 500-600 lb. steers were up $20.19 per cwt. to $366.35 per cwt. Heavyweight 800-900 lb. steers were up $3.82 per cwt. to $305.09. Ontario 300-400 lb. heifers had a tremendous rally of $64.14 per cwt. to $309.60 per cwt. Ontario heavyweight 700-800 lb. heifers were up $15.37 per cwt. to $278.77 per cwt.
Canadian feeder export volumes for the week ending Jan. 20 totalled 2,117 head, down 20 percent from the same week last year.
Cutouts soften
In U.S. beef trade, cutouts began to seasonally soften. Choice cutouts closed last week at US$294.94 per cwt. and Select at $283.25.
