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 market strengthens
The Alberta fed market was active, and for the first time this year sold more heifers than steers. Fed steers and heifers traded at $260.11 per hundredweight and $258.08 per cwt., respectively, more than $2 per cwt. stronger after trading sideways for the previous three weeks.
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Dressed sales were reported at $430-$437 per cwt., with most sales in the $430-$432 range. There was good competition among packers but lack of interest from U.S packers.
Last week, the Alberta cash-to-futures basis was +$17.17 per cwt., steady with the previous week and $2.88 per cwt. stronger than last year.
Canadian fed slaughter for the week ending May 11 was 48,705 head, down one per cent from the previous week and down two per cent compared to the five-year average. Year-to-date fed slaughter, at 946,595 head, is down two per cent from last year.
Dressed sales in Ontario remain steady at $407 per cwt. delivered. The Ontario cash-to-futures basis was $0.18 per cwt., $1.41 per cwt. weaker compared to the previous week.
Warmer weather should support grilling and food service demand, providing support to fed prices.
In the United States, there was no trade to speak of and no bids until the morning of May 17, when packers in the north opened at US$298 per cwt. and the south at $185 per cwt.
Feedlots passed all bids. Trade finally shook loose at $190 per cwt. live and $300 per cwt. dressed in the north and $186 per cwt. live in the south.
U.S. steer carcass weights last week averaged 923 pounds, three lb. heavier than the previous week and 28 lb. heavier than the same week last year. Heifer carcass weights, at 848 lb., were steady with the previous week and 25 lb. heavier than last year.
Cows riding high
Alberta cow prices were $3-$5 per cwt. higher, while Ontario cows traded $1-$3 per cwt. stronger. New highs were established in Alberta, while Ontario prices are $1 per cwt. shy of highs set in April.
Alberta D2s averaged $184.77 and D3s averaged $168.77 per cwt. On a seasonally light offering of cows, feeder cow buyers and western Canadian packers continue to be active on the market.
Western Canadian cow slaughter for the week ending May 11 totalled slightly more than 5,100 head. For early May, this is smallest slaughter since 2017, not counting 2020. For the week ending May 4, butcher bull exports to the U.S. totalled 865 head, the largest export volume seen this year. Year-to-date butcher bull exports are down 19 per cent compared to last year, while Canadian bull slaughter volumes are down six per cent.
In general, many producers are only a few weeks from turning cattle out on summer pastures. There could be a little flush of cows hitting auction markets in the next two weeks as calving culls/opens or late calving cows are sent to town.
Feeders go sideways
Heavier steers more than 900 lb. have trended mostly sideways for the past three months. This is common during spring. Based on last year and the five-year average, it is typically the second half of June when heavier weight feeder prices start to rally higher.
To some degree Alberta 900 lb. and heavier steer prices have underperformed compared to the eastern Canadian market as Ontario feeder prices set new record highs last week, averaging $321 per cwt.
Over the previous two weeks, the 850 lb. steer-heifer price spread has been between $33-$40 per cwt., historically wide.
Canadian feeder cattle exports to the U.S. have been more than 5,000 head in two of the past three weeks. The jump in exports is surprising given Alberta feeder (750 lb.) prices have been at a $7 per cwt. premium to the U.S. over the past month.
Last week, Alberta and Saskatchewan 950 lb. and heavier heifers for September delivery traded from $305-$315/ per cwt. Prices are roughly $5 per cwt. softer compared to three weeks ago.
Cow-calf pairs traded from $2,825-$5,000, averaging $4,550, which is $80 higher than the previous week and $1,700 higher than last year. Demand for younger cows and with older calves at side continues to be strong. On the flip side, middle-aged to older cows with younger calves at side seem to be a tougher sell.
Cutouts rally higher
In U.S. beef trade, choice cutouts rallied to US$310.15 per cwt. last week, a five per cent pop from the previous week. Select cutouts rode their coattails, moving almost four per cent higher to $296.51 per cwt.
