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.
New highs for steers
Western Canadian fed prices have been averaging in the upper $250s per hundredweight for the previous three weeks. Weighted average steer prices ($257.98 per cwt.) set new record highs last week.
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Fed calves accounted for roughly 75 per cent of last week’s cash offering, while the balance was yearlings. All three western Canadian packers procured cattle. Dressed sales were reported from $425-$433 per cwt. delivered.
The Alberta fed cash-to-futures basis was reported at plus $16.29 per cwt. For this particular week, it was the fourth strongest basis on record. Only 2015, 2018 and 2021 were stronger. On a cash basis, it was the fourth consecutive week that Alberta fed prices were at a premium to the Nebraska market.
With more fed calves entering the slaughter mix, carcass weights have dropped sharply, averaging below 900 pounds for the second consecutive week. Western Canadian packers have scaled back hours, with one major packer opting to run four days a week.
Western Canadian fed slaughter for the week ending May 4 totalled slightly more than 38,000 head. For the start of May (excluding 2020 because of COVID plant slowdowns), it was the smallest weekly slaughter since 2017.
In Ontario, dressed sales were reported at $407 per cwt. delivered, fully steady with the previous week.
The Alberta market is likely getting toppy, and upside remains limited. Packers seem to be better positioned with cattle compared to two weeks ago.
In the United States, dressed sales in Iowa and Nebraska ranged from $295-$296 per cwt., while live sales were reported from $186-$187, fully steady with the previous week. Sales in Texas and Kansas were from $184-$185 per cwt., steady to $1 per cwt. stronger.
The story has been the same for the past few months with weaker beef exports and strong overseas beef imports. U.S. beef exports for March were six per cent lower than last year. Year to date, the top three markets for U.S. beef are Japan, South Korea and China, all of which account for slightly more than 60 per cent of total beef exports. Beef imports for the month of March were 11 per cent larger than last year.
Cow prices cool
Alberta cow prices have surged since the beginning of the year but recently began to cool in line with seasonal trends. Last week, D2 cow prices remained steady at $181.25 per cwt., while D3 cow prices softened by $2.64 per cwt. to $164. Butcher bull prices traded for the first time in 14 weeks softer at $190.51 per cwt., down by $3.13 per cwt. from the previous week.
For the week ending April 27, western Canadian non-fed slaughter totalled 5,650 head, the lowest weekly slaughter of the year, down five per cent when compared to the previous year.
Eastern Canadian non-fed slaughter totalled 2,095 head, down 12 per cent from a year ago. Year-to-date non-fed slaughter totals 165,019 head, down seven per cent from last year. Non-fed prices are expected to trend mostly sideways until August, following historical seasonality.
Auction numbers dwindle
Alberta auction volumes at 14,588 head were 52 per cent smaller than last year, the lowest volume for that week since 2020 and 18 per cent short of the five-year average. The lower volume can be attributed to recent rain and seasonal decline typical for this time of the year.
Alberta grass-type feeder prices traded $3.90-$9.04 per cwt. stronger than the previous week, while heavyweight prices soften by $1.85-$2.61 per cwt. Lightweight heifer prices were steady to $6.88 per cwt. softer than two weeks ago, while heavyweight prices strengthened by $4.68-$6.48 per cwt.
Steers and heifers weighing 700-800 lb. traded in opposite directions, with steers up $4.71 per cwt. and heifers softer by $3.03 per cwt. In April, the spread between Alberta 550 lb. steers and heifers strengthened by $9.35 per cwt. to $52.86 per cwt., while the Alberta 800-900 lb. steer-to-heifer spread strengthened by $1.50 per cwt. to $26.06 per cwt.
Manitoba heavyweight heifers lightly tested the market for October delivery at $309.50-$315 per cwt. for 875-937 lb. delivery weights.
Feeder cattle exports to the U.S. for the week ending April 27 totalled 4,144 head, down 20 per cent from last year. However, year-to-date feeder exports are higher than last year at 50,979 head, up six per cent.
Cutouts mixed
In U.S. beef trade, Choice cutouts rebounded one per cent higher last week, closing at US$295.39 per cwt. Select cutouts eased one per cent lower to $285.76 per cwt.
