Daily Cattle Report

September 25, 2018

Slaughter Report Last updated September 25, 2018

Feeder Report Last updated September 25, 2018

Alberta Cattle Industry Market Report

Alberta direct cattle sales Monday saw no new trade to report. This week's showlist has been compiled with volumes steady with the previous week. Last week on a cash to cash basis Alberta fed prices were at a 3.50 premium over the Nebraska market. Cow slaughter volumes continue to be large for this time of year. Western Canadian cow slaughter volumes for the week ending September 15th totaled just over 7,400 head. For the middle of September this is the largest weekly cow slaughter volume since 2011.

Yesterday Live Rail
Steers --- ---
Heifers --- ---

In the cow and bull trade in Central Alberta on Monday.

D1, D2 Cows D3 Cows Bulls
80.00-95.00 70.00-80.00 85.00-117.00

US Trade

In the US, two loads of steers traded in Iowa yesterday with dressed sales marked at 173.00. Sales are 1.00-2.00 lower than the previous week. This morning buying interest remains light, significant trade is not anticipated to develop until the second half of this week. Asking prices are poorly defined but are expected to start out around 115.00 on a live basis. Four state showlist volumes have been reported smaller with the largest week over week declines in fed supplies noted in Texas.

Yesterday Live Rail
Choice Steers --- 173.00
Choice Heifers --- 173.00

National slaughter cows averaged:

Boner Cows Rail Avg
Over 500 lbs 112.45

Canadian Dollar

The nearby Canadian dollar at 8:30 this morning was trading at 77.35, down 0.05

Chicago Mercantile Exchange

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

October December February
112.15, -0.02 117.05, +0.05 121.37, +0.07

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 Alberta on Monday

  Steers Heifers
900+ --- ---
800-900 --- ---
700-800 --- ---
600-700 214.00-224.00 187.00-197.00
500-600 221.00-238.00 197.00-208.00
400-500 241.00-260.00 207.00-225.00
300-400 289.00-293.00 239.00-250.00
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 September 24, 2018

Alberta direct cattle sales saw moderate trade last week and average prices firmed $3.50/cwt higher than the previous week. Last week’s prices were the highest seen since the end of July. Most of last week’s trade was reported dressed from $244-246/cwt delivered and cattle are being scheduled for mid-October delivery. Rail prices generally strengthened $5.50/cwt higher than the previous week. Western Canadian fed slaughter for the week ending September 15th rebounded 14% larger and YTD is 6% larger at 1,380,265 head. Canadian fed/cow exports to the US for the week ending September 8th surged to 9,069 head, the third largest weekly export volume this year.

The western Canadian calf market has been steady for the better part of this year and 550 lb steers have traded on either side of $225/cwt. AB 900 lb steers for January delivery have seen bids and sales in the low $190s/cwt FOB lot. Using a ten cent slide, cash to futures basis levels are around -$1.15/cwt. It should be noted 850 lb steer basis levels for January 2018 averaged -$1.29/cwt. With US corn being freighted into Southern Alberta and supplies of corn being booked out as far as spring of 2019, barley prices have come under pressure. Harvest delays and quality concerns could add additional wheat to the feed market.

D2 cow prices established new annual lows with prices last week trading $1.75/cwt lower. Cow prices have not been this low since November 2016. The point of concern is non-fed volumes through commercial auction facilities have been fairly light and seasonally larger supplies are still in front of us. Over the past two weeks butcher bull prices have dropped $11.25/cwt. Even with this sharp pull back, butcher bull prices are higher than last year. Middle of September US canner and utility prices are trading at the lowest level since 2010.

Bull.

  • Feedlot market ready supplies should tighten moving forward
  • Cheap US corn has moderated local barley prices
  • Seasonally strong fed basis continues

Bear.

  • USDA indicates 6% more cattle on feed Sept 1st and 7% more Aug placements compared to a year ago
  • Carcass weights are seasonally increasing
  • Packer inventory cushion is building

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

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