MARKET INFORMATION UPDATE By Jamie Gamble, BFO Market Information Coordinator markets@ontariobeef.com • www.ontariobeef.com
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tatistics Canada released the January 1, 2021 cattle stats report
of time to ramp up to full capacity, it has been some very positive
early this March. By category, fed steers and heifers on Ontario
news for an industry that has been struggling for quite some time.
farms totaled 385,600 head which is an increase of 3.7% over
At time of reporting in mid-April, prices have improved by $8.00 cwt
January 1, 2020. Of that total, heifer volumes were up 12.3% from
in the last two weeks with steers now sitting at $248.00 dressed.
2020 which is the largest January 1st volume since 2012. January
Although prices are above year ago values, they are sitting around
1 steer volumes were down by 7% from January 1, 2020 and is the
$10.00 easier than 2019 at this time and the five-year average. Prices
lowest January volume reported since the same time in 2014. Fed
are expected to seasonally improve over the next couple of months.
cattle volumes on Ontario farms have only been above 400,000 head
Ontario federal processing volumes as of April 16 total 168,562
once (in 2018) since January 1, 2012, with the 2021 volume being
head, up 4.2% over the same time in 2020 which is the second
the fourth lowest January numbers in the last ten years.
largest year-to-date volume in this data set starting in 2011. Steer
The beef cow volumes on Ontario farms as of January 1, 2021
volumes are up by just 163 head, heifer volumes up by 3,181 head
were 240,800 head which is the lowest January 1st inventory since
and cow processing volumes are up by 3,508 head, however all
January 1, 1952 according to the Statistics Canada report. This
categories are below 2019 at the same time period. Exports of live
current January was down 3.25% from January 1, 2020, however
fed cattle and cull cows to the U.S. through Ontario ports as of April
volumes for the last five years have been fluctuating between
3, 2021 are at 36,152 head, up 3.3% from the same time last year
240,800 to 249,400 head. Replacement heifer volumes were also
and 23% higher than April 3, 2019. 2021 export volumes are also up
at lower levels on January 1, 2021 at 40,400 head, down 6.3% from
14% from the five-year average. Volumes have been on a decline
January 1, 2020 and the lowest January volume since January 2014.
very recently as the Canadian dollar increased and the number of
Replacement cattle volumes on Ontario farms as of January 1,
cull cows coming to market has been lighter, with the April 3, 2021
2021 were reported at 436,000 head, up 5.5% from last January and
weekly volume below both the last two years and the five-year
the largest January volume since 2016. The January 1, 2020 volume
average.
was the lowest January 1 replacement cattle volume since data
Ontario federal and provincially inspected carcass weights have
collection began in 1932.
been collected since 1997. January 2021 was the highest monthly
The Ontario fed cattle market has been under pressure the first
average in this data set at 990 lbs for steers and February 2021 was
quarter of 2021 with little price movement. January to the first week
reported at 983 lbs. The closest monthly average weight for steers
in February, prices were steady at $236.00 dressed. In early February,
was set in January 2016 at 987 lbs with February 2016 at 983 lbs.
prices increased to $240.00 cwt dressed and traded between
Weights are currently on the decline but are still averaging 10 to 20
$240.00-$241.00 on average until the second week in April. The
lbs heavier than last year at this time and in 2019 respectively, and
shutdown of Cargill Meat Solutions in Guelph at the end of 2020 due
10 lbs heavier than the five-year average. Weights should moderate
to COVID-19 related issues saw cattle starting to back up in feedlots,
as cattle feeders become more current. Rising grain prices will also
but thankfully the shutdown was short lived. However, it still added
contribute to lower carcass weights moving forward.
to the backlog of cattle and saw carcass weights increasing. Some
Cull/fed cows in Ontario saw larger volumes trade at auction
cattle were able to get onto the set-aside program which provided
markets to start 2021, but since mid-March numbers have declined
some financial support but many did not get registered. Packers have
and are lower than the same time in 2020 and 2019 on a week-
been working tirelessly to get through the volumes of larger animals
to-week basis. Overall volumes as of April 15, 2021 are 41,486
and it appears at this time that things have improved. In March of
head, down 1.2% from the same time in 2020, but 16% more than
this year, TruHarvest Meats (the previous Ryding-Regency facility)
the same time in 2019. The prices this year have increased as the
opened their doors for the first time which is adding some much-
volumes declined, with April 2021 prices stronger than the last two
needed capacity for Ontario beef farmers. Although it will take a bit
years and the five-year average.
Continued on page 32.
ON TAR IO BEEF • MAY 20 21
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