Daily Cattle Report

September 29, 2016

Slaughter Report Last updated September 29, 2016

Feeder Report Last updated September 29, 2016

Alberta Cattle Industry Market Report

Alberta direct cattle sales Wednesday saw no new trade to report. Dressed bids have been reported from 215.00-217.00 delivered, initial bids are 10.00 lower than the previous week. No live bids have been reported however using a 60% dressing percent, dressed bids are working back on either side of 130.00 on a live basis.  

Yesterday Live Rail
Steers No trade No trade
Heifers No trade No trade

In the cow and bull trade in Southern Alberta Wednesday:

D1, D2 Cows D3 Cows Bulls
85.00-95.00 78.00-86.00 116.00-127.00

US Trade

In the US, light trade was reported in all major feeding states yesterday. Dressed sales in the North were steady to 3.00 lower than trade seen on Tuesday and are also 5.00-6.00 lower than the previous week. Live sales in Texas and Kansas are 3.00-4.00 lower than the previous week. Packers have to be grinning ear to ear this week as they have been able to buy cattle cheaper while at the same time beef cutout values have strengthened. Over the past couple of days packer margins are estimated to be anywhere from 85.00-125.00/head positive.

Yesterday Live Rail
Choice Steers 103.00-104.00 (South) 160.00-163.00 (North)
Choice Heifers 103.00-104.00 (South) 160.00-163.00 (North)

National slaughter cows traded:

Boner Cows Rail Avg
Over 500 lbs 129.34

Canadian Dollar

The nearby Canadian dollar at 8:30 this morning was trading at 76.36, down 0.07.

Chicago Mercantile Exchange

On the Chicago Mercantile Exchange, in midsession trade, live cattle futures are as follows:

October December February
103.97, +0.50 104.55, +0.92 104.85, +0.75

Replacement Trade

Information provided on this report is supplied by various auction markets throughout Alberta. In reference to the following prices, producers are reminded to check with individual markets on current prices and trends. Prices quoted include top quality cattle only.

Feeder and stocker prices in Central Alberta on Wednesday

  Steers Heifers
900+ 161.00-168.00 n/a
800-900 168.00-176.00 151.00-159.00
700-800 175.00-185.00 156.00-163.00
600-700 180.00-187.00 157.00-165.00
500-600 18.00-19.00 160.00-171.00
400-500 n/a 167.00-180.00
300-400 n/a n/a
Bred Cows Bred Heifers Cow/Calf Pairs
n/a n/a n/a

All information sourced from Statistics Canada, Alberta Agriculture and Canfax.

Canfax Weekly Article

ABP Weekly

Report for the week of September 26, 2016

Weighted average steer prices surged over $5.00/cwt higher than trade seen over the past two weeks and average heifers realigned par with prices seen during the week ending September 2nd.  The majority of last week’s trade was dressed from $225.00-227.00 delivered.  The weekly cash to futures basis strengthened an estimated $4.00 to -6.92.  Western Canadian fed slaughter for the week ending September 17th totaled 43,602 head, 12% larger than the previous holiday week kill.  YTD Western Canadian fed slaughter of 1,215,810 head was 4% larger than a year ago.  Canadian fed cattle exports to the US for the week ending September 10th eased modestly to 5,736 head and  YTD total 203,521 head.

Calf prices generally trended $3.00-8.00 higher last week with light calves less than 500 lbs seeing the largest week over week increase. Yearling prices saw similar strong demand with steers generally trading $5.00-7.00 higher and heifers up $3.00-5.00.  The weekly Canadian feeder index strengthened over $4.50 last week to $178.37. Feeder exports to the US for the week ending September 10th rebounded from 1,206 to 2,844 head. YTD feeder exports totaled 153,590 head.

Butcher cows traded unevenly steady last week while butcher bull prices eased to new lows.  Western Canadian cow prices have dropped $9.00/cwt since the beginning of September and dressed bids slipped to around $173.00-177.00 delivered.  Even with this sharp price pull back over the past three weeks, Alberta D1, D2 cows still remain at a small premium compared to the US utility market.  Canadian non-fed exports to the US for the week ending September 10th were modestly larger totaling 4,985 head.

Bull.

  • China will resume importing bone in beef
  • Fed kills continue historically large
  • Buyer competition has improved modestly

Bear.

  • Poor cattle feeding margins persist
  • Technical support remains lacklustre
  • US market ready supplies are ample and Canadian export demand is weak 

Bull.

  • The September 1st Alberta and Saskatchewan cattle on feed report should be interpreted as bullish
  • The AAA/Choice spread is significantly narrower than last year and the five-year average
  • October Live Cattle futures have rallied 6-7% from lows on September 6th 

Bear.

  • Beef cutout values established new lows last week
  • Ontario fed cattle prices established new lows last week
  • Growing protein supplies will be a price limiting factor that will have to be monitored going forward

For more detailed information on markets this week please visit the Canfax website www.canfax.ca.

  • © 2005 CANFAX a Division of the Canadian Cattlemen’s Association. All rights reserved. No part of this publication may be reproduced in any form, or by any means whatsoever, without acknowledging that CANFAX was the author of the publication and is the owner of the copyright. For further information contact CANFAX at (403) 275-5110.
  • For over 40 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.
  • Those interested in becoming Canfax members can sign up on the website at www.canfax.ca