Fed prices trend higher
Fed cattle prices have averaged in the low to mid $170s per hundredweight over the past nine weeks. From a seasonal perspective, the early summer market has defied the pressure that typically occurs.
On a monthly basis, fed prices have trended higher since the start of the year. Over the past 49 years of data, there have only been two other years when prices strengthened each month from January to June. Those years were 1973 and 1978. In both of those years, the summer fed market held up well. It is interesting to note in each of the following years (1974 and 1979) fed cattle prices averaged higher, year over year. Last week dressed sales were reported from $290-$292 per cwt. delivered.
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In Ontario, dressed sales were reported from $315-$320 per cwt., steady to $3 per cwt. lower.
Western Canadian steer carcass weights are the smallest they’ve been all year, averaging 848 pounds.
In U.S. trade, fed cattle in the northern states traded from US$145-$151 per cwt., while southern regions ranged from $135-$140 per cwt. Live sales were mostly steady with the previous week.
Dressed trade in Iowa and Nebraska was reported from $230- $236 per cwt., steady to $2 lower. Historically strong basis levels are encouraging producers in the north to market cattle. Total U.S. beef exports for May were two percent larger than last year. With Canada unable to export beef into China, the U.S. has benefited.
Many cows on offer
A large non-fed offering was reported at auction last week despite improved pasture conditions. Slaughter cow prices again tested annual highs with D2s and D3s trading more than $100 and $90 per cwt., respectively, for the past 13 weeks. D2s averaged $105.60 and D3s averaged $94.25.
Dressed cow bids firmed around $1 per cwt. higher than the previous week to $208-$213 per cwt. delivered. Butcher bull prices firmed to a new annual high, averaging $131.93 per cwt.
With one less day due to the July 1 holiday, western Canadian non-fed slaughter for the week ending July 2 dipped 34 percent lower than the previous week to 4,871 head. Year to date, western slaughter was fully steady with the same week last year at 179,794 head.
At a $9 per cwt. discount to U.S. utility, Canadian slaughter cows continue to head south of the border. Fed cattle/cow exports to the United States for the week ending June 25 were two percent larger than the previous week at 8,427 head, and slaughter bull exports rallied 44 percent larger to 1,081 head.
Feeder prices ease
Alberta feeder prices eased $1.50 per cwt. lower last week with selective buying observed on varied quality and lot size. Strong demand continued for calves and yearlings placed against the typically strong fourth quarter and early spring fed markets.
Volumes of light calves less than 500 lb. were too slight to establish a trend. Larger calves heavier than 600 lb. traded mixed relative to quality with steers slipping sharply lower. Similar weight heifers of seedstock calibre firmed almost $2 per cwt. higher. Large feeders heavier than 800 lb. saw good feedlot and grass interest last week, trading steady to stronger. Premiums for deferred September delivery were observed for yearlings heavier than 900 lb.
Auction volumes were 42 percent lower than the previous week at 7,129 head and were 68 percent larger than the same week last year. Year to date auction volumes were five percent larger than the same week last year at 620,846 head.
Canadian feeder exports to the U.S. for the week ending June 25 were down 27 percent from the previous week to 2,940 head. Year to date, feeder exports are significantly 184 percent larger than a year ago at 131,675 head.
Precipitation across much of the Prairies quelled selling pressure. Forage and crops are progressing, and improved feeding margins are anticipated for the fourth quarter 2022 and first quarter 2023 fed markets.
U.S. cutouts up
In U.S. beef trade, Choice cutouts ended the week at US$268.07 per cwt., 1.5 percent higher than the previous week and 17 percent higher than the five-year average. Select cutouts were mostly steady with the previous week at $242.58 per cwt. and remain 14 percent above the five-year average.
