Farmers’ Advocate Canfax Canadian cattle report

By Shawn Cabak

Manitoba Agriculture

Reported by Canfax for the week ending June 23 –

Alberta direct cattle sales saw moderate volume cash trade with dressed prices steady to firmer than athe previous week from $414415/hundred weight (cwt) delivered. Good demand and manageable supplies fueled a strong $7/cwt Alberta/Nebraska cash basis this week. Weighted average Alberta steer prices firmed around $0.50/cwt higher than the previous week to $247.84/cwt, to be the strongest steer prices seen this week in North America!

Western Canadian fed slaughter for the week ending June 17 was one per cent larger than the previous week to 38,953 head. Year to date Western fed slaughter was down six per cent from the same week last year, totaling 962,141 head. Fed cattle/ cow exports to the US for the week of June 10 were generally steady with the previous week at 6,210 head and were down 18 per cent compared with year ago.

Canadian steer carcass weights dropped below the US weights for the week ending May 20, and as of June 10 were 11 lbs lighter. Canadian weights had been significantly heavier than the US since September 2022. This contributed to a weak basis in the fourth quarter of 2022 and the first quarter of this year. The shift to more current weights in Canada has supported the basis in recent weeks and led to improved prices. Carcass weights are seasonally the lightest in June, providing the greatest opportunity for feedlots to gain leverage over packers.

With most cattle now grazing on pasture there are fewer cattle sold over the summer months so many auction marts close over this period. Once cattle are finished grazing in the fall and are rounded up yearlings and calves will be sold through auc - tion, sold direct to a feedlot or be backgrounded at home. Canfax is projecting prices for fall yearling steers weighing 850 pounds in the $3-3.10/ lb range based off of the cattle futures market, the Canadian dollar valued at 76 cents and average basis ranging from minus eight to plus two cents per pound.

USDA cattle on feed report

The United States Department of Agriculture (USDA) released its June

1st cattle on feed report and it should be viewed as bearish, as feedlot placements came in well above expectations. The marketplace was expecting larger placements of 3.6 per cent, whereas actual placements came in five percent higher. Cattle on feed inventories dropped 56,000 head from May to June. June 1st cattle on feed inventories totaled 11.6 million head, 2.9 per cent lower than last year and the smallest since 2017.

For more information contact the Manitoba Agriculture