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.
Canadian fed cattle up
Western Canadian fed steers set a new record high last week with the Canfax average at $201.46 per hundredweight, up $1.57.
That was $56 higher than the same time last year.
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Heifers averaged $199.76.
The Canadian market did better than the United States, where cash cattle in Kansas and Texas at the end of the week sold at US$160-$161 per cwt., down $2 from the previous week.
This weakness in the U.S. and recent strength in the Canadian dollar could limit further price strength in Canada.
Most of the cattle marketed these days are yearlings, but more fed calves are entering the mix and fetching prices comparable to the yearlings.
Packers appear to have immediate slaughter needs covered. Most of the cattle traded last week were scheduled for delivery the second week of May.
Canadian packers were outbidding U.S. packers, whose bids for Canadian cattle worked back to the mid C$190s on a live basis.
Western Canadian heifer slaughter totalled slightly more than 19,000 head two weeks ago, the largest volume seen this year.
Weekly heifer slaughter hadn’t topped 19,000 head since last May.
Cattle are grading exceptionally well. Canadian AAA + Prime as a percent of all A grades was more than 70 percent in recent weeks, setting new record highs.
Export volumes from Canada should slow now that the Alberta-Nebraska cash-to-cash basis is strengthening.
Western Canadian fed slaughter totalled 33,452 head, which was the second most this year.
Market-ready supplies are manageable.
Cows rise
Slaughter cow supplies are moderate, and grilling season demand for hamburger is strong.
D1, D2 cows ranged $143-$158 to average $151.17, up $3, and D3 cows ranged $120-$142 to average $129.50, steady with the previous week.
Rail cows rose range $281-$286 per cwt. delivered.
Slaughter bull prices rose more than $2 to average $170.
Weekly western Canadian non-fed slaughter to April 11 rose 28 percent to 5,602 head.
Canadian non-fed exports for the four day week ending April 4 slipped to 4,678 head.
Exports this year are down 26 percent.
Feeder rise
Prices surged higher last week, even with a large volume at auction as farmers delivered ahead of the busy planting season.
Feedlot and grass buyers are now procuring a diverse variety of cattle with less emphasis on weight and more focus on volume and profit margins.
Steers rose $1.67 on average and heifers climbed $2.07.
Light calves traded mixed on varied quality while 400-700 pound stockers saw prices firm $2-$3. Feeders heavier than 700 lb. were steady to higher.
Strong demand for 500-600 lb. calves has maintained a historically wide calf-to-feeder spread, while the steer-to-heifer price spread is comparable with last year.
Alberta auction volumes more than doubled to 32,342 head, which was up five percent from the same week last year.
Volumes this year are down 12 percent at 399,241 head.
Weekly feeder exports to April 4 fell 20 percent to 14,443 head.
Feeder exports are up nine percent this year at 157,449 head.
The demands of seeding will likely reduce the number of cattle at auction in coming weeks. That should support prices, but a strong loonie and a weaker Chicago futures market would pressure cash feeder prices.
Beef stronger
U.S. boxed beef traded mixed with Choice up US$1.99 at $260.38 per cwt. and Select down $1.48 at $250.97. The Choice price was only $3 lower than the record high set in mid-January.
Weekly Canadian cutouts to April 4 saw AAA rise C$5.68 and AA climb $12.38.
The Canadian March consumer price index said the year-over- year increase in beef price was 17.8 percent, outpacing pork at 11.8 percent and poultry at 3.5 percent.
The CPI for beef is up 1.4 percent compared to February, while pork is down .1 percent and poultry is down .3 percent.
