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 prices steady
Alberta direct cattle sales saw light to moderate trade last week with prices trending fully steady with the previous week. Dressed sales started out at $248 per hundredweight delivered, and later trade firmed $2 per cwt. higher later in the week.
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During the second half of 2018, average steer prices have dropped below year-ago only twice, and that occurred over the previous two weeks. Average prices have trended sideways for four straight weeks, but this week once again realigned modestly higher than a year ago.
Western Canadian fed slaughter for the week ending Nov. 10 was fully steady with the previous week at 337,736 head, and year to date was six percent larger at 1,698,400 head.
Canadian steer carcass weights for the same week trended sharply 15 pounds lower than the previous week to 925 lb. and were three lb. heavier than the same week last year.
Canadian fed-cow exports to the United States for the week ending Nov. 3 slipped 19 percent lower than the previous week to 7,316 head and year to date were down 19 percent, totalling 320,905 head.
In the outlook, feedlots continued to aggressively market cash cattle last week and the cash offering was expected to moderate. Western Canadian packers harvested more than 10,000 head of non-fed cattle for the week ending Nov. 10 to put a minor dent in weekly fed slaughter. Holiday wholesale beef buying was winding down last week, and cut-out support deteriorated. Steer carcass weights continue to mirror year ago very closely, and second half highs may now be over.
In the United States, scattered dressed sales were reported steady to $2 per cwt. lower in the north at US 178 per cwt. delivered. Asking prices on most of the show list were at $180 per cwt. in the north.
Larger cow slaughter
D2 cows traded at C$72-$86 per cwt. last week to average $78.50, and D3s traded at $60-$78 to average $68.88. Slaughter bull prices were down by more than $4 to average $91.17 per cwt.
November is not known as a strong month for the non-fed market as second half lows have occurred in five of the past 10 years. Non-fed supplies through commercial auction facilities remain ample and prices have struggled.
For the weeks ending Nov. 3 and Nov. 10, western Canadian cow slaughter volumes totalled 19,490 head, which is 27 percent larger than last year and one percent larger than 2016.
Speculative buying interest continues to be noted, but limited pen space in Western Canada and higher feedgrain prices have taken some demand off the feeder cow market. The trade is working through peak non-fed supplies, and from a buying perspective, packers will continue to have the upper hand.
Lots at auction
Last week was the third week in a row that Alberta auction volumes exceeded 80,000 head. Large volumes of calves trading across the prairie provinces have moderated feedlot demand.
Prices for 500 lb. steer calves are trading within $1 per cwt. of their annual low set in early April. Year over year, the largest price decline on 550 lb. steer prices has been in Ontario with prices down $40 per cwt., while 550 lb. calf prices in British Columbia, Alberta, Saskatchewan and Manitoba are down $17-$18 per cwt.
Last week, 850 lb. steer cash-to-futures basis levels weakened, closing the week at -5.75 per cwt. This is in line with the weekly three-year average of -6.19. Mid-November traditionally has the weakest basis level for the fourth quarter.
For the month of September, imports of U.S. feeders into Canada totalled 21,200 head compared to 6,766 head last year. From January to September, slightly more than 100,000 head of U.S. feeders were imported into Canada.
Cutouts lower
In beef trade, U.S. cut-out values eased lower last week as the U.S. Department of Agriculture reported light to moderate demand on a moderate offering.
Choice was at US$213.55, down from $216.07 the previous week, and Select was at $197.58, down from $199.11.
