Daily Cattle Report

June 15, 2018

Slaughter Report Last updated June 15, 2018

Feeder Report Last updated June 15, 2018

Alberta Cattle Industry Market Report

Alberta direct cattle sales Thursday saw light trade develop with dressed sales marked at 240.00 delivered. Sales are steady to 2.00 lower than the previous week. Some producers were negotiating lift dates for the second half of July delivery. Fed prices are on track to establish new lows this week. Feeding margins remain negative on the cattle being sold right now.

Yesterday Live Rail
Steers --- 240.00 del
Heifers --- 240.00 del

In the cow and bull trade in Southern Alberta on Thursday

D1, D2 Cows D3 Cows Bulls
86.00-96.00 71.00-85.00 105.00-112.00

US Trade

In the US, 2,500 head of cattle traded between Iowa and Nebraska yesterday with dressed sales ranging from 176.00-180.00. Sales are 1.00-2.00 lower than prices seen on Wednesday and 4.00-6.00 lower than last week. Bids in the south remain unchanged from earlier in the week as southern packers are bidding 110.00 on a live basis. In general packers have bought very few cattle this week and buying interest should improve over the next several hours. USDA released carcass weight data yesterday, steer weights averaged 851lb, weights are 3lb larger than the previous week.

Yesterday Live Rail
Choice Steers --- 176.00-180.00
Choice Heifers --- 176.00-180.00

National slaughter cows averaged:

Boner Cows Rail Avg
Over 500 lbs 116.62

Canadian Dollar

The nearby Canadian dollar at 8:30 this morning was trading at 75.87, down 0.46

Chicago Mercantile Exchange

On the Chicago Mercantile, in mid session trade,  live cattle futures are as follows:

June August October
106.40, +0.15 102.12, +0.25 104.97, +0.17

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 Southern and Northern Alberta on Thursday

  Steers Heifers
900+ 159.00-165.00 ---
800-900 171.00-181.00 156.00-165.00
700-800 180.00-198.00 173.00-176.00
600-700 200.00-207.00 176.00-196.00
500-600 217.00-225.00 186.00-200.00
400-500 --- ---
300-400 --- ---
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

Report for the week of June 4, 2018

Alberta direct cattle sales were slow to develop last week with light trade reported on Wednesday. Business turned active on Thursday with live prices $2.00-2.50 lower than the previous week. Dressed sales ranged from $241.00-243.00 delivered, with the majority of sales at $242.00. Total sale volumes were light to moderate and a significant portion of the showlist will be carried over. Western Canadian fed slaughter for the four day week ending May 26th was 8% smaller than the previous week totaling 35,414 head. YTD western fed slaughter was 9% larger at 702,582 head. Canadian fed cattle exports to the US for the week ending May 19th were 25% larger than the previous week at 5,720 head and YTD were down 16% totaling 104,398 head.

It was a seasonally light trade for the feeder and calf market last week. Many auctions were reporting very light steer volumes, with more of the feeders being clean-up heifers. Prices across feeders and calves were reported to be under modest pressure. Smaller lot sizes and quality may have played into the lower prices. Lackluster market conditions and feedlots now selling fed cattle at losses has also reduced the demand for feeders. Grass cattle continued to see demand for good quality calves. The month of May had good export demand for calves and feeders. Feeder exports tend to peak in March and April, but this year there has been an unseasonal increase in exports in May.

D1/D2 cull cow prices were under pressure last week. Volumes at auction were higher, as calving culls are being sorted and marketing and demand was also moderate, as larger fed supplies add to the competition for hook space. Western Canadian cow slaughter last week was near 6,300 head, over 2,000 higher than the same week a year ago. Over the last three weeks, western cow slaughter has been averaging about 2,000 more than a year ago. It was this week a year ago that cow prices peaked, and while cow prices tend to stay strong later into the summer, upside on the cow market may be limited.

Bull.

  • Steer carcass weights are below year ago
  • Packer margins are profitable
  • North American beef export demand remains strong

Bear.

  • Local packers have some grid cattle cushion
  • Spring moisture conditions are causing forage concerns
  • Despite two weeks of light US fed trade, feedlots have not been able to gain market leverage

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

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