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 trade softens
Alberta fed steers and heifers have traded softer for three consecutive weeks. Last week, steers and heifers traded $258.05 per hundredweight and $255.39 per cwt., respectively.
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Dressed sales were reported at $428 per cwt., delivered, at the lower end of last week’s trade, steady to $7 per cwt. softer.
For the week ending June 22, western fed cattle slaughter was 42,929 head, up seven per cent from the previous week and up 11 per cent from the same week last year. Year to date, fed slaughter in the west was steady with last year.
For the week ending June 15, Canadian fed cattle and cow exports to the United States, at 7,368 head, were up seven per cent from last year. Weekly exports have been running above last year for the past five weeks.
Weekly eastern exports at 3,900-4,662 head per week have been larger than western exports at 2,500-3,600 head per week for the last four weeks. Eastern exports of fed cattle and cows have moved steadily higher since the Guelph Cargill strike started. There was a positive development as the strike closed its fifth week when the union and Cargill agreed to meet for further discussions.
In the U.S., late week trade was at US$312 per cwt. in the north and $190 per cwt. in the south.
U.S. pasture and range conditions for the week ending June 23 were rated 75 per cent fair, good or excellent, down from 76 per cent the previous week. Texas and New Mexico are the hardest hit states, with only 59 per cent and 31 per cent, respectively, rated fair, good or excellent. According to the U.S. Department of Agriculture, approximately 12 per cent of the U.S. cattle herd was affected by drought as of the last week of June, down from 41 per cent the same week last year.
The latest potential trade disruption impacts east and Gulf Coast port workers who are opposed to further automation of the port. Approximately 45 per cent of waterborne pork exports and 25 per cent of beef exports go through east and Gulf Coast ports.
Cows down sharply
Alberta D2 cows dropped a sharp $8.95 per cwt. last week, averaging $183.69 per cwt. D3 cows dropped $3.52 per cwt. to average $171.98.
The five-year average indicates mostly sideways movement from June to August with prices drifting one to two per cent lower over summer. Butcher bulls closed at $210 per cwt., up $1 per cwt. as lean trim prices continue to be supportive.
In Ontario, D2 cows at $164 per cwt. were $3.58 per cwt. stronger and D3 cows at $140 per cwt. were up $1.53 per cwt. Over the last five weeks, beef and dairy cow prices have held up and even strengthened $9.70 per cwt. Beef cow prices have maintained a $15 per cwt. premium over dairy cows.
Beef cow volumes through auction markets in June were half of last year and the five-year average with the Guelph plant closed. Dairy cow volumes were down nine per cent from last year and down 16 per cent from the five-year average.
Auction numbers down
Alberta auction volumes dropped below 10,000 head last week, following seasonal patterns. Mid-weight steers in Alberta were $7-$8 per cwt. higher than the previous week, while heavier weights were $1-$2 per cwt. stronger. Mid-weight heifers ended the week $1-$5 per cwt. lower, while heavier weights were $1-$2 per cwt. stronger.
In the first half of 2024, the Alberta 550 lb. steer/heifer price spread has ranged between $40-$69.50 per cwt. and is now sitting at $60 per cwt. The 850 lb. steer-heifer price spread has ranged widely between $16-$41 per cwt. and is sitting at the lower end at $16 per cwt.
In Ontario, 550 lb. steers dropped below $400 per cwt. for the first time, after 10 consecutive weeks above. Alberta 550 lb. steers were at a $30 per cwt. premium over Ontario, but 850 lb. steers had a modest $1.61 per cwt. premium.
Alberta had a larger premium on heifers, with 550 lb. and 850 lb. heifers $35 per cwt. and $32 per cwt. higher than Ontario, respectively.
Auction volumes across the Prairies tend to be lowest during July. Moisture relief in May and June should keep cattle on pasture until the yearling run starts in August.
Choice cutouts bounce
In U.S. beef trade, Choice cutouts put in a new annual high just above US$323 per cwt. last week and have climbed nearly 10 per cent since the second week of May. Select cutouts had some headwinds and moved mostly sideways over the same period, averaging $302.70.
