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 cattle
The fed steer weighted average was $179.11 per hundredweight, up $2.16, and heifers were $178.35, up $2.07.
Most sales went to one Alberta plant, which is operating hand to mouth, lifting cattle within two weeks. The other major Alberta plant needs are covered until mid-February.
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A few prairie fed cattle traded south.
U.S. packers were buying for immediate delivery and for the week of Jan. 25 .
U.S. bids were steady to slightly higher than local sales, working back to about $180 on a live basis, depending on freight and dressing percent.
Cash-to-futures basis levels strengthened to -$9.56, in line with the five year average.
Dressed sales in Iowa and Nebraska were reported from US$208-$210 dressed which was generally steady with the previous week.
Sale volumes in the U.S. South increased and live sales were steady to $1 higher.
Canadian market-ready numbers should be manageable throughout the first quarter of 2016, but carcass weights are record heavy. Western Canadian steer weights are 67 pounds and heifer are 34 lb. larger than the same week last year.
January is traditionally not a strong beef demand month because consumer disposable income tightens following the holidays.
Cows up
Slaughter cow prices surged more than $3 per cwt. higher.
D1, D2 cows ranged $102-$116 to average $109.63 and D3 cows ranged $90-$104 to average $97.50.
Dressed bids were $5 higher, ranging $215-$220.
Butcher bulls rose almost $4 to average $129.56.
Weekly western non-fed slaughter to Jan. 9 was 7,412 head.
Exports for the week ending Dec. 31 were typically light at 2,535 head.
Exports for the year were 16 percent down.
Non-fed marketings are expected to increase a little as cattle purchased for tax reasons are turned over.
The hamburger grind market will restock following the holidays and prices are expected to firm modestly.
Feeders mixed
Feeder auctions saw a typical slow start to the year with a variety of lot sizes and quality.
Prices were poorly defined on a thin offering of calves lighter than 500 lb. but the market tone was generally softer.
Feeder 500-700 lb. saw adequate demand and prices were steady to higher.
Feeders heavier than 700 lb. traded mixed with steers generally lower and heifers higher.
Full feedlot pens in Alberta and a lack of U.S. buyer interest moderated feeder demand.
Weekly Alberta auction volume was one percent down from the same week last year at 18,971 head.
Exports over the holidays were minimal.
Exports in 2015 were down 35 percent below 2014.
The Jan. 1 prairie cattle on feed report showed that December placements were up 14 percent. With total on-feed inventory up four percent over last year, pen space for new placements is limited.
Despite the removal of country of origin labelling rules in the U.S. and a weak Canadian dollar, the Alberta feeder basis remains very strong, therefore U.S. interest has been limited.
Feeder demand will be established locally, with some competition from Ontario buyers.
Prices will likely trend steady to lower.
Beef price stronger
Packers operating profit was estimated at more than $100 per head , encouraging a larger slaughter that will lightly cap cut-out values near term as beef prices tend to peak during the middle of January.
Choice cutout rose US$4.57 to $235.16 per cwt. and Select rose $5.54 $229.43.
Weekly Canadian boxed beef prices to Jan. 8 saw AAA up C$11.80 at $305.49 and AA $300.92, up $16.55.
Prairie on feed
The Alberta-Saskatchewan on feed population Jan. 1 was 937,691, up four percent from the year before. It was the sixth month of increases.
However, inventory is still the third smallest in the years since 2000.
Placements in December were 88,643 up 14 percent.
Marketings in December were 107,948, down six percent.
