Comments for the week ending January 11, 2024
Larger receipts of fed steers and heifers sold this week as most auction markets returned to regular schedules. 404 fed cattle sold this week up 259 from the week before and 34 more than this time last year. Fed steers saw a full trading range of $210.04-$228.27 cwt averaging $222.03 up $5.52 from the week before and $32.81 stronger than year ago prices. Fed heifers sold from $209.49-$227.19 averaging $219.67 cwt up $11.17 from last week on average and $33.07 higher than last year at this time. Auction markets reported trade as steady to last week but under pressure from pre-holiday sales. By mid-week trade was noted as $2.00-$3.00 cwt higher and ended the week on a steady trade.
The Ontario railgrade market this week saw prices holding fully steady. The previous Friday sales were reported at $375.00 cwt dressed for steers with heifers trading at $374.00 with delivery the week of January 15 th . Monday the market was quiet with no bids reported. As the week progressed trade was noted at steady prices with delivery the week’s of January 15th and January 22 nd depending on the purchasing packer. This week’s price averaged $49.00 cwt stronger than last year at this time. U.S. packer buying interest in Ontario this week was also reported. The Boxed Beef Report by Kevin Grier noted the holiday beef market overview: “Beef movement at retail over the holiday period was sluggish but within merchandiser’s budgeted expectations. Except for one or two outliers, retailers were not shy about putting beef on the front page of the flyer at higher prices over the Christmas period. Retailers are now working at a new pricing plateau given the past three years of exceptionally high cutouts. Buyers would have dealt with the highest priced Christmas ribs ever. They are not going to “invest” or subsidize packer offerings to put a sharp price on the front of the flyer.” Kevin also reports Canadian buyer activity: “Foodservice buyers will still be looking for lay-away and inventory building but will likely be more cautious than usual. Retail buyers did not need much fill-in beef after the holidays. February and March features are shaping up to be typical winter items.”
Larger receipts of 2,495 fed/cull cows sold through auction markets this week up 490 from the week prior but 675 fewer than the same week last year. Cows sold from $99.15-$131.81 cwt averaging $113.64 up $0.76 cwt from the week before and $26.98 higher than year ago prices. Auction markets reported a good demand with active trading and prices steady to higher, with one market noting sales up by $10.00 cwt from pre-holiday prices. As the week progressed trade was steady to fully steady. 371 of this week’s offering were beef cows up 219 head from last week’s light volumes, averaging $119.69 down $6.25 cwt from last week’s trade (prices were high last week on light receipts). 2,124 dairy cows sold this week up 271 head from last week averaging $111.56 up $0.67 cwt from the week before.
There were a few more stocker and feeder cattle show up to markets this week but volumes were still light with just 2,249 head sold, up 1,412 from last week’s limited trade but 741 fewer than last year at this time. Auction markets reported trade as active across the board with sales continuing steady. By Wednesday heavier cattle were noted as selling actively at higher prices. By week’s end calves were selling actively on a strong market with all others selling selectively at barely steady prices. Actual average prices this week saw steers 500-600 lbs up $3.84 from last week on average, 600-700 lbs up $21.29. 700-800 lbs up $22.10, 800- 900 lbs down $13.93 cwt, 900-1000 lbs were up $14.52 while steers 1000 lbs were down $0.51 cwt from last week on average. Heifers from 500-600 lbs averaged $23.49 higher than last week, 600-700 lbs up $17.10, 700-800 lbs were down $2.24 cwt on average, 800-900 lbs up $0.39 and heifers 900 lbs plus were off by $13.96. A few categories last week did not sell enough to establish a price. The Quebec electronic market this week sold at $376.50 cwt dressed on a picked-up basis, up $1.25 cwt from last week on average. Alberta direct trade was light this week with Canfax reporting trade on Wednesday from $360.00-$368.00 cwt delivered on a dressed basis. Thursday light trade continued at $365.00 cwt dressed which is steady to a couple of dollars easier than Wednesday. Canfax reports: “Cattle that traded and were bid on were being scheduled anywhere from late January to mid-March delivery, depending on the packer. With longer pick up times some producers were negotiating flat bids with no heavy weight carcass discounts.
The U.S. cash cattle trade the week ending January 5th saw light trade in the north Wednesday and Thursday with a few scattered deals on Friday with sales from $273.00-$279.00 dressed, mainly $274.00- $275.00 cwt up $1.00-$2.00 cwt on average from the previous week with some live trade from $172.00- $176.00, mainly $174.00-$175.00 up $1.00-$2.00. Light trade in the south on Friday ranged from $172.00- $173.00 live, steady to $1.00 cwt higher. Final results posted by the USDA Mandatory Price Report saw overall average prices for live steers at $174.01 with heifers averaging $173.85 both averaging $1.77 cwt stronger. On the rail, steers averaged $274.78 dressed up $1.91 while heifers averaged $274.32 up $0.73. The U.S. cash cattle trade this week has been extremely quiet as most feeding states have been dealing with extreme winter storms. A light test was noted on Wednesday in Iowa with sales steady to last week's trade at $175.00 live and $275.00 dressed. Thursday light trade was noted in Iowa at prices steady to Wednesday while Nebraska was reported at $272.00-$275.00 dressed, steady to $2.00 lower. The south remains at a standstill. The severe winter weather this week has slowed processing as some plants cancelled shifts due to weather, power, transportation and other issues associated with the storms. Cattle weights are declining in the severe weather and there are reports some feedlots are pulling cattle from this week’s show list and holding on for a couple of weeks before offering them again. Some areas are still dealing with the weather as another weather event is unfolding. Asking prices are sitting around $174.00 plus live in the south and $275.00 plus dressed in the north. At time of reporting a couple of bids have surfaced in Nebraska at $273.00 dressed but no sales have developed, while the south is quiet with no bids on the table. Trade will be light this week as sellers are more concerned with dealing with the weather conditions and taking care of their livestock. Active trade could be delayed until late this afternoon, if it even develops.