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 prices rebound
Averaging on either side of $240 per hundredweight, western Canadian fed prices rebounded $1 per cwt. last week. Fed cattle prices are $11 per cwt. higher than last year.
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To highlight the strength of the fed market, over the past 3.5 years, fed prices have not dipped below year-ago levels.
Sale volumes were light and dressed sales were reported at $405 per cwt. delivered. U.S. packer interest was noted, and light volumes were marketed south.
With weak basis levels and fed prices holding close to second half of the year lows, the cattle feeding sector has been fighting the market by adding extra weight to their cattle.
For the week ending Nov. 2, western Canadian fed slaughter totalled slightly more than 37,000 head, 16 per cent lower than last year. This is the smallest non-holiday slaughter volume seen this year. Lighter slaughter volumes are concerning. If fed prices are going to see a fourth quarter price rally, it will be key to keep front-end supplies manageable.
In Ontario, dressed sales were reported at $411 per cwt. delivered, steady to $5 per cwt. higher than the previous week.
In the United States, dressed sales in the northern feeding states were at US$294 per cwt., $2 per cwt. lower than the previous week. Live sales in the northern feeding states were from $186-$188 per cwt., while sales in Texas and Kansas were at $187 per cwt., $1-$3 per cwt. softer.
U.S. beef exports in September were four per cent larger than last year. More beef was shipped to Japan, South Korea and Hong Kong. Larger exports were also noted in smaller markets such as Indonesia, Philippines and Vietnam.
Year-to-date U.S. beef exports are three per cent lower than last year.
Cows hold steady
The cull market continues to be under seasonal pressure. Alberta D2 cows and feeder cows avoided most of the softness, at least for this week.
D2 cows ended the week barely steady with the previous week, at $166.60 per cwt., while feeder cows climbed almost $1.75 per cwt. to $186 per cwt. Alberta D3 cows slid 75 cents lower to $154.75 per cwt., while butcher bulls were $2.75 per cwt. lower at $188.75 per cwt. Rail grade cows through commercial auctions marts averaged $5 per cwt. lower last week.
In Ontario, D2 and D3 cows both eased $5 per cwt. lower. Dairy cow volumes were slightly more than 1,700 head, the largest weekly volume since the last week of May.
For October, Alberta D2 cows averaged $175 per cwt., 31 per cent higher than last year and 85 per cent higher than the five-year average. Ontario D2 cows averaged $161 per cwt., 30 per cent higher than last year and 86 per cent higher than the five-year average.
Year to date, non-fed slaughter is down 19 per cent from last year, with non-fed production down 15 per cent.
Feeder prices strong
Alberta auction volumes were 82,473 head, the second highest weekly volume for the year, but down 13 per cent from the high set two weeks ago. Alberta’s calf market has rallied nine per cent over the last seven weeks.
Last week, steer calf prices remained strong, while heifer calves had a slight pullback. Alberta 550 pound steer calves traded $1.20 per cwt. stronger than the previous week and $52 per cwt. above last year. At $437.50 per cwt., this is only $3.33 per cwt. below the annual high set in July.
The 550 lb. heifer calves traded $5.60 per cwt. lower than the previous week, but remain $61 per cwt. above year ago.
As of July 1, the number of western Canadian calves less than one year old, outside of finishing feedlots at 2.82 million head, was down 74,300 head from last year. This reduced supply has been driving the higher prices seen in recent weeks.
Bred cows averaged $3,517 per head, $920 per head stronger than last year and the second highest price recorded for the year so far.
For the week ending Oct. 26, feeder cattle exports to the U.S. were 4,193 head, down 11 per cent from last year. For the second half of the year, this is the second highest weekly volume. Year-to-date feeder exports remain 12 per cent below last year.
Cutouts soften
In U.S. beef trade, Thanksgiving holiday buying is winding down. U.S. cutouts softened two to three per cent last week, with Choice at US$309.46 per cwt. and Select at $279.72 per cwt. It was the first time in four weeks that Choice closed under $310 per cwt.
