Canfax Weekly Article | Report for the week of November 11, 2024

Averaging on either side of $240/cwt Western Canadian fed prices rebounded $1/cwt. Fed cattle prices last week were $11/cwt higher than last year. Sale volumes were light last week and dressed sales were reported at $405/cwt delivered. Cattle that traded were being scheduled for late-November/early-December delivery. US packer interest was noted, and light volumes were marketed South. For the week ending November 2nd, Western Canadian fed slaughter totaled just over 37,000 head, 16 per cent lower than last year, and was the smallest non-holiday slaughter volume seen this year.

Alberta auction volumes were 82,500 head last week, the second highest weekly volume for the year, but down 13 per cent from the high set the previous week. Last week, steer calf prices remained strong, while heifer calves had a slight pullback. Alberta 550 pound steer calves were trading $1/cwt stronger than the previous week and $52/cwt above last year, while 550 pound heifer calves were trading $6/cwt lower than the previous week, they remained $61/cwt above a year ago. For the week ending October 26th, feeder cattle exports to the U.S. were 4,200 head, down 11% from last year.

The cull market continued to be under seasonal pressure. Although Alberta D2 cows and feeder cows avoided most of the softness, at least for one week. Alberta D2 cows ended the week barely steady with the previous week, while feeder cows managed to climb almost $1/cwt. Alberta D3 cows slid $1/cwt lower and with butcher bulls $3/cwt lower. Railgrade cows through commercial auction marts averaged $5/cwt lower last week. For the month of October, Alberta D2 cows were 31% higher than last year. YTD non-fed slaughter is down 19% from last year. Cow carcass weights averaged 738 pounds last week.

Bull

• Smaller feeder cattle volumes through auction marts should be price supportive
• Low-cost producers could see a payback in as little as five years on the purchase of replacement heifers
• Alberta fed steer prices have been above year ago levels for the last 3.5 years

Bear

• The latest USDA WASDE report revised the national corn yield almost 1 bu/ac lower
• The December live cattle futures closed this past Friday at their lowest point since September 25th
• End meats ended last week 2-10 per cent lower than the previous week; 90 per cent trim was down 2 per cent