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.
Good packer interest
Alberta fed sales volumes totalled 11,042 head, up 16 percent from the previous week but down 1.7 percent compared to last year. Packer interest last week was strong.
Dressed sales were reported at $380 per hundredweight delivered, up $2-$10 per cwt. from the previous week. The Alberta fed cash-to-futures basis at -$20 per cwt. remained $8.37 per cwt. weaker than the five-year average. Given the weaker basis, many producers are opting to add more weight to cattle, anticipating a more favourable market.
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For the week ending March 2, western Canadian steer carcass weights averaged 973 pounds, 61 lb. heavier than the five-year average. Canadian fed cattle and cow exports to the United States have been running above year-ago levels since the end of January, with year-to-date volumes seven percent higher than last year as of Feb. 24.
Canadian fed slaughter for the week ending March 2 totalled 50,716 head, down three percent from last year. Year-to-date slaughter volumes totalled 452,591 head, down two percent from last year.
In Ontario, dressed sales were reported at $400 per cwt. delivered. The cash-to-future basis is at -$14.69 per cwt. This is the weakest basis since the start of the year.
In the U.S., trade ramped up to US$185 per cwt. in Texas and Kansas. Lightweight and heavyweight feeder steers have seen an upward trend since the beginning of the year, with rallies from $8.04 to $17.41 per cwt.
The recent Texas Panhandle fire resulted in a notable reduction in the Panhandle herd size. The preliminary estimated loss of 7,000 head represents a relatively small fraction of the total herd so it is not expected to have a significant impact on the overall cattle market.
U.S. slaughter continues to run below year-ago level, with year-to-date volumes down six percent from last year. Year-to-date beef production is down 4.5 percent with heavier carcass weights.
Cows set record
Non-fed volumes through commercial auction facilities were light last week. Trading $8.50 per cwt. higher last week, butcher cows established new record highs, and dressed sales were also stronger, with top end sales reported up to $300 per cwt.
Part of the reason for strength through sale barns is good buying interest and competition from feeder cow buyers. Last week the price spread between D2 cows ($157.50 per cwt.) and butcher bulls ($159.71) was only $2.50 per cwt., the narrowest spread since April 2014. Last year, on average, the price spread between bulls and cows was $16 per cwt.
Over the past 25 years, only once (2004) have cows established first half of the year highs in March. This suggests there is still more upside.
Feeder price rallies
Heavier weight feeders usually have their annual lows at this time of year, but not this year. Since the start of 2024, 850 lb. steers have rallied 10 percent. Over the past 20 years, two other counter-seasonal years stand out, when prices moved higher during the first quarter and had a similar price rally: 2011 (nine percent) and 2014 (13 percent). In both those years, prices strengthened right through to the end of the year, peaking late in the fourth quarter.
To some degree, Ontario calf prices have underperformed compared to Western Canada. Last week, Alberta 550 lb. steer calves were trading at a $64 per cwt. premium compared to the Ontario market. This is one of the largest premiums ever seen.
Canadian feeder cattle exports to the U.S. for the week ending Feb. 24 totalled 2,680 head compared to the five-year average of 4,275 head. Over the past 15 years, for the second half of February, this stands as the third smallest feeder export volume. Only 2021 and 2023 were smaller.
Since early December, the February/April 2025 live cattle contracts have rallied more than $15 per cwt. Both contracts are hovering in the low US$190 per cwt. and are trading $6-$8 per cwt. shy of highs set last September.
U.S. cutouts up
In U.S. beef trade, cutouts continued to outperform expectations, closing another one percent higher last week. Choice cutouts pushed over $306 per cwt. for the first time since late October. Select cutouts closed at slightly more than $296 per cwt.
