Western Producer Livestock Report

Feed cost pressures cattle

Rising feed grain prices put downward pressure on fed and feeder cattle prices. Reduced U.S. packer kills also pressured fed prices.

Averages in Alberta were 50 cents-$1 per hundredweight lower live and $1-$2 lower dressed, said Canfax.

Feedlots sold actively with nearly 26,000 head trading, up 38 percent from the week before. They had to because carcass weights have climbed in recent weeks.

The steer weight two weeks ago was 25 pounds heavier than in 2005 and 21 lb. heavier than the five-year average.

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Cattle continued to move south, but because of the Thanksgiving holiday, the week’s numbers were likely lower than the 20,000 head posted the week before. Slaughter was also down because of the holiday.

Alberta prices Oct. 12 were steers $84.55-$85.50 per cwt., flat rail $139.50-$141.35 and heifers $84.35-$84.85, flat rail $136.80.

Prices typically improve in October and November, but feedlots will have to move the heavy cattle and get back to a current status, said Canfax.

Basis should narrow later this fall.

U.S. slaughter down

By reducing hours at U.S. plants, packers tried to pressure beef prices higher and cattle lower. The strategy worked last week, said Canfax.

U.S. cutouts were mixed with Choice nearly $1 cwt. higher. Select was down 30 cents.

Canadian cutouts lost ground recently with AAA and AA down $4 per cwt. Most cuts trended lower from middles to trim.

Calgary wholesale price for delivery this week was down $2 at $142-$143.

Feeder heifers weaken

Feeder cattle prices were mixed last week with steers mostly steady but heifers under pressure, said Canfax.

The steer-heifer spread on 500-600 lb. calves is $10.

Light steers 300-600 lb. were steady to $1 higher, steers 600-800 lb. were $1-$1.50 lower and 800-900 lb. and heavier were steady to $1 lower.

Light heifers 300-600 lb. were $1.25-$3 lower, 600-800 lb. were $2-$2.50 lower and heavy animals were $1.50-$2.25 lower.

Alberta auction market volumes at 51,304 head were 20 percent lower than the week before and 17 percent lower than last year, said Canfax.

Feeder cattle exports for the week ending Oct. 7 were 4,651 head compared to 11,587 last year.

D1, 2 cows and butcher bulls were steady.

Rising feed grain prices will keep downward pressure on feeder cattle, said Canfax. Large volumes were expected this week.

Ontario and Quebec demand for calves has been good.

Large calf runs are expected for the next four to six weeks.

Stock bred cow prices rose with most at $775-$950 and plain types $450-$700.

Bred heifers in northern Alberta were mostly $750-$910, with plain types $550-$700.

Cow-calf pairs were mostly $850-$1,125, with plain types $600-$800.

On-feed report

The Alberta-Saskatchewan cattle on feed report showed September placements at 257,461 head, down one percent from last year, the smallest since the report began in 2000.

Active placements in July and August and a slow start to the calf run were likely factors, said Canfax.

Alberta auction volumes, six percent under last year, also supported the smaller placements.

Feeder exports were 42 percent smaller in September with only 16,686 heading south.

Total cattle on feed for Oct. 1 were 882,256 head, up 17 percent from last year. This was five percent larger than 2002 but five percent smaller than 2001 and six percent smaller than 2000.

Marketings in October totalled 159,287 head in the Canfax survey group, two percent smaller than last year. Total marketings were 216,325 head, down six percent from last year. Marketings included an 18 percent decrease in domestic slaughter and a 48 percent increase in fed exports.