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 cattle down slightly
Western Canadian fed prices have come under a little pressure over the past two weeks. Despite lower prices, this is the 19th consecutive week that prices have averaged over $250 per hundredweight.
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From their highs in June, fed cattle prices have declined four per cent. Last year, prices dropped 6.5 per cent from June highs to summer lows that occurred in August.
Light trade was reported last week. Dressed sales were $318-$320 per cwt. delivered. Last week’s Alberta fed cash-to-futures basis was reported at +$1.20 per cwt., stronger than the five-year average of -$2.43 per cwt.
In Western Canada, slaughter rates have been slow to increase, in part because Canadian slaughter cattle exports to the United States (fed cattle and cows) have been historically larger over the past month.
Lower prices were noted in Alberta and the U.S., but the Ontario market was the bright spot last week. Dressed sales in Ontario were at $425 per cwt. delivered, steady to $5 per cwt. stronger. Eastern Canadian fed prices are now trading at a premium against the Alberta market.
From their highs in June, Ontario steer carcass weights have declined 84 pounds. At 26 lb. above last year, this is the most current since early April, with the exception of one week in May.
In the U.S., dressed sales in Iowa and Nebraska were at US$298 per cwt., $7 per cwt. lower than the previous week. Live sales in the northern feeding states were at $190 per cwt., $3 per cwt. softer, while sales in Texas and Kansas were at $185 per cwt., steady to $1 per cwt. lower.
U.S. beef exports for June were two per cent lower than last year. Beef exports to Hong Kong, China and South Korea continue to run below last year. For the first half of the year, U.S. beef exports are five per cent below last year.
Cows under pressure
The western Canadian non-fed market had a negative tone last week. Alberta feeder cows traded $4.40 per cwt. stronger, while D1,2 cows (-$1.50 per cwt.), D3 cows (-$1.60 per cwt.) and butcher bulls (-$5 per cwt.) were under pressure. D2s averaged $194.63 per cwt. and D3s averaged $179.36. Butcher bulls averaged $212.51 per cwt.
Rail grade cows ranged $380-$390 per cwt., steady with the previous week.
According to Alberta Agriculture, average pasture conditions have slowly deteriorated. As of Aug. 6, 40 per cent of the provincial pasture acres were rated good to excellent.
Western Canadian cow exports totalled 3,500 head in June and were the second smallest on record for June going back to 2008. In Ontario, cull cows were $2 per cwt. stronger last week. Auction volumes of both beef and dairy cull cows were seasonally light, supporting prices. Eastern Canadian cow exports totalled almost 8,500 head in June, and it was the second largest June volume behind 2013. Eastern Canadian cow exports tend to bottom during the summer.
Mixed feeder price
Alberta auction volumes were 15,639 head, trending counter seasonally for the last two weeks. The Canfax average for steers traded $2.03 per cwt. higher than the previous week, while heifers traded $2.32 per cwt. lower.
Last week, steers saw mixed prices, with 400-500 lb. and 800-900 lb. trading +$17 per cwt. and +$3.75 per cwt., respectively, while all other weight classes traded steady to $9.11 per cwt. lower.
Heifers weighing 700-900 lb. traded steady to $4.13 per cwt. higher than the previous week, while the remaining weight classes traded steady to $8.25 per cwt. lower.
For July, the Alberta 500-600 lb. steer/heifer spread was reported at $47.75 per cwt., $6.18 per cwt. narrower than last month, as lightweight heifers had a much stronger rally at $11.72 per cwt. compared to steers at $5.54 per cwt. Meanwhile, the Alberta 800-900 lb. steer/heifer spread remained steady at $20.32 per cwt.
For the week ending Aug. 3, feeder cattle exports to the U.S. were 1,630 head, down 39 per cent from last year. For Western Canada, that was the smallest weekly export (excluding short holiday weeks) since the first week of the year at 447 head. Year-to-date feeder exports at 95,736 head are up one per cent from a year ago.
Cutouts uneven
In U.S. beef trade, cutouts moved unevenly higher last week. Choice closed the week at US$316.94 per cwt., with Select at $302.03 per cwt. Last year at this time, Choice cutouts were in the midst of a rally toward $318 per cwt., and though there hasn’t been a notable rally this year, Choice cutouts are only $1-$2 per cwt. shy of last year’s summer peak.
