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.
Feds up slightly
Alberta fed steers and heifers averaged $243.71per hundredweight and $242.52 per cwt., respectively last week, trading slightly stronger than the previous week. Since mid-August, fed prices have remained below $250 per cwt.
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Over the past decade, Alberta fed live prices have on average dropped 23 per cent from their annual highs to lows. This year prices are down 18 per cent compared to 25 per cent last year.
Dressed sales were reported at $403-$407 per cwt. delivered. All three western Canadian packers bought cattle.
The Alberta cash-to-futures basis was reported at plus $2.24 per cwt., strengthening by $8.45 per cwt. compared to the five-year average and has moved counter seasonally for the last three weeks.
Canadian fed cattle and cow exports to the United States for the week ending Sept. 7 were 11,967 head, up 32 per cent from last year. This is the largest export volume in 18 weeks and the largest year-over-year increase in five weeks.
Ontario fed prices held steady at $242.70 per cwt. Dressed sales were reported at $407 per cwt. The Ontario cash-to-futures basis was reported at 91 cents per cwt., softening by $1.87 per cwt.
Fed prices are expected to stabilize. When comparing annual high to annual low for the last decades, only 2018, 2019, 2021 and 2022 saw smaller reductions.
In the U.S., most of last week’s trade was delayed until Sept. 20, when around 14,000 head traded between Nebraska and Texas/Kansas. Nebraska was US$184 per cwt. live, steady with the previous week, and $290-$292 per cwt. dressed, $1-3 per cwt. higher than the previous week.
Slaughter was estimated at 610,000 head, 10,000 head smaller than the previous week and 17,000 head smaller than the same week last year.
Cow prices steady
Butcher cows traded steady to C$2 per cwt. higher through commercial auction facilities, but pressure was noted toward the end of the week. Rail prices were $5 per cwt. softer.
From their highs in August, both Alberta and Ontario cow prices have declined $12-$13 per cwt. In Alberta, D2s averaged $184.53 per cwt. and D3s averaged $171.20. Butcher bulls averaged $207.68.
Despite lower prices over the past month, non-fed values remain historically strong for this time of the year. Butcher cows are trading 33 per cent or $45 per cwt. higher than last year. On a 1,450-pound cow, producers are putting $650 per head more in their pocket versus a year ago.
Cow volumes have been slow to ramp up, with many auction facilities reporting 100-250 cows at weekly sales.
Western Canadian cow slaughter for the week ending Sept. 14 was slightly more than 4,900 head, 31 per cent lower than last year. For the middle of September, this is the smallest cow slaughter since 2020. Over the past four weeks, cow slaughter volumes are down 8,600 head compared to last year. As cow volumes seasonally increase, price pressure is anticipated.
Feeders under pressure
Last week there was a good mix of calves and yearlings on offer, and prices were mixed. From their highs in late July, calf prices have declined $38 per cwt., while heavier weight feeders have dropped $20 per cwt.
It is unusual to see calf prices under pressure in September because this is normally when second half of the year price highs are established.
Eastern Canadian buyers continue to be active on the Alberta and Saskatchewan forward delivery calf market, showing good interest on heavier weight steer calves. On video/electronics sales last week, nearly 70,000 head of calves traded.
Based on Monday-Thursday sale results, Alberta and Saskatchewan 500-599 lb. steers for November delivery traded from $407-$472 per cwt. with a weighted average price of $426.77 per cwt. based at 540 lb. Same weight heifers traded from $378-$396 per cwt., with a weighted average price of $386.57 per cwt.
In September 2023, five-weight steer and heifer calves for November delivery averaged $403 per cwt. and $370 per cwt., respectively. This suggests steer prices are $23 per cwt. higher than last year, and heifer prices are $16 per cwt. higher.
With cheaper feedgrain prices, it is somewhat surprising that the steer-heifer price spread is wider than a year ago.
In terms of volume, the yearling run has been smaller than last year, and peak numbers are in our rear-view mirror.
Cutouts decline
In U.S. beef trade, cutouts continued their seasonal decline, with both Choice and Select softening 2.5 per cent from the previous week. Choice ended the week at US$299.56 per cwt., slipping below the $300 per cwt. mark for the first time since mid-May. Choice cutouts are 15 per cent stronger than the five-year average. Select ended the week at $288.26 per cwt., its lowest point since early May.
