This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattlemen’s 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 steers prices were $1.88 lower than last week, at $179.48 per hundredweight. Fed heifer numbers were not available, said Canfax.
Light trade was reported and bids eased over the course of the week.
The weighted average steer price closed $1.75 lower and is the first time since December where prices have closed below $180 per cwt.
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The fact that some cattle have been carried over from week to week while others have intentionally been pushed back has led to increased marketing pressure.
Carcass weights
Bigger cattle mean more beef in spite of smaller cattle numbers, and higher carcass weights have been a trend, said Canfax in its latest report.
Fed cattle prices have been significantly higher than the marginal cost of adding extra weight, so larger animals are more profitable. Red hot feeder prices also prompted producers to feed cattle longer rather than gamble on the next set of feeders.
U.S. steer carcass weights have broken records, averaging 905 pounds, which is 26 lb. more than last year and 51 lb. more than the 2008-12 average. Canadian carcass weights are also higher than last year but similar to 2013 weights. Current steer weights average 873 lb. compared to 845 lb. in 2014.
Canadian steer carcass weights topped 900 lb. last month for the first time ever, hitting levels of 907 and 906 lb. in various weeks of August. In the last five years, carcass weights have increased 9.5 percent from their summer lows into the fall peak, or an average of 77 lb.
Non-fed cattle
D1 and D2 cows traded from $135-$150, and averaged $140.88, up 95 cents from the previous week. D3 cows ranged from $118-$139 to average $129.38.
Rail grade animals ranged from $264 to $269. Slaughter bulls were up 49 cents to average $169.85.
Domestic rail cow bids on load size lots trended sharply lower. Slaughter bull prices were fully steady.
Western Canadian non-fed slaughter for the week ending Aug. 29 was over shadowed by the fed kill, down sharply to 3,670 head. Year-to-date non-fed western Canadian slaughter was down eight percent, totalling 186,728 head. Canadian non-fed exports to the U.S. for the week ending Aug. 22 eased modestly lower to 5,075 head and year-to-date totalled 174,896 head.
Feeder cattle
Feeder steer prices were up $1.71 and feeder heifers were down by 66 cents. Average prices were not provided for early September.
Heavier feeders were generally stronger, while lighter feeders had some lower prices, but this was mainly related to smaller lot sizes and quality issues. Producers continue to be actively forward selling calves and feeders given the strong prices and basis levels.
Of the 26,700 head sold at auction, almost half sold through electronic sales. Calves have yet to hit auction marts, with cow and feeder volumes moderate.
Heavier calves for September delivery continue to see a premium relative to deferred delivery, as they sell into a stronger fed marketing window. Feeder exports have been 4,300 head versus 7,400 last year, but since July 1 feeder exports have been 6,000 head higher. U.S. and eastern Canadian buyers were active in the market. Cow-calf pairs traded at $2,500 to $3,700.
Beef trade
U.S. Choice cutouts averaged $240.81, down $3.40, and Select averaged $228.44, down $4.68. Canadian AAA was up $1.87 per cwt. to $310.31 as of Aug. 28. Canadian AA was down 91 cents to $303.96.
