Beef Farmers of Ontario is reporting a much bigger decline in fed cattle prices from summer's high to fall's low this year.
BFO says a decline is seasonal and expected.
However, from 2011 to 2014 that decline has ranged from just over 3 per cent to almost 6 per cent.
This year, fed cattle prices are already down over 12 and a half per cent from the summer highs - and BFO suggests the bottom has not yet been reached.
The cattlemen's group says that rapid drop in prices has many Ontario beef producers now experiencing a loss on their fed cattle going to market.
The 624 head of fed cattle on market in the province last week was up almost 260 on the week, 22 more than a year ago.
The average fed steer and heifer prices were both almost 8 dollars lower on the week.
The fed steer average was just over 11 dollars higher than the same week last year, heifers 7.74 higher.
Just over 21 hundred cull cows were sold in Ontario last week - steady to the previous week - about 300 fewer than a year ago.
Their price average 2.67 lower on the week and 1.43 stronger on the year.
BFO says the Ontario replacement cattle market was under pressure last week.
There were about 55 hundred replacements on offer on the week - up 774 from the previous week but 250 fewer than the same week last year.
Weekly Cattle Comments - As Supplied by Beef Farmers of Ontario
Toll free: 1-866-370-2333 or Local: (519) 824-0334
Fax: (519) 824-9161 Email: markets@ontariobeef.com
Comments for the week ending September 24, 2015 It was a very tough week in the fed cattle market with 624 head sold through auction markets, up 258 head from last week, and 22 more than last year at this time. Fed steers traded from $164.97-$175.28 averaging $170.93 down $7.87 from last week and just $11.34 stronger than last year at this time. Fed heifers ranged from $155.04-$173.96 averaging $166.50 down $7.90 from last week and only $7.74 higher than last year at this time. Auction markets reported this week's trade as under further pressure with lower to much lower prices. At week's end the market was reported at $5.00-$6.00 cwt lower.
The Ontario railgrade market declined as the week progressed with steers starting out the previous Friday at $295.00-$300.00 dressed, down to $291.00-$300.00 on Monday and ended the week at $289.00-$298.00 dressed on Wednesday, with delivery dates one week to four weeks out. Heifers followed the same downward trend with sales reported from $294.00-$299.00 the previous Friday, down to $290.00-$299.00 on Monday and ended the week at $288.00-$297.00 dressed on Wednesday. This week's average prices are down $6.75 from last week and just $23.50 stronger than last year at this time.
The fed cattle price decline from the summer high to a fall low is seasonal and expected, however the drop this year is considerably more than the norm. In 2011 dressed prices declined 3.23% from the spring/summer high to the fall low, 2012 declined 5.71%, 2013 was down 4.04% and 2014 down 4.56%. So far in 2015 the decline from the summer high is currently at 12.64% and the bottom has not been reached at this time. This rapid decline in prices has many beef producers now experiencing a loss on their fed cattle going to market.
The cull cow market also declined as the week progressed with auction markets reporting steady trade early in the week, to barely steady to easier as the week progressed, with one report of $2.00-$3.00 lower. 2,109 cull cows were on offer at Ontario auction markets this week which is fully steady to last week and 304 less than last year at this time. Prices ranged from $84.89-$118.76 averaging $101.99 down $2.67 from last week and just $1.43 stronger than last year at this time.
The replacement cattle market was similar to all other classes this week with most weight classes selling under some pressure. 5,506 replacement cattle sold through auction markets this week up 774 from last week and 250 less than last year at this time. Auction market reports started out the week with prices steady on good quality cattle, while medium quality and plainer types were easier. As the week progressed, prices were noted as barely steady to easier across the board with sales $2.00-$3.00 cwt lower and demand as selective. Medium quality and plainer types were under further pressure. Actual average prices for this week saw steers 400-500 lbs average $3.20 lower than last week, 500-600 lbs were up $4.02, 600-700 lbs down $5.15, 700-800 lbs down $8.97, 800-900 lbs down $4.35, 900-1000 lbs down $12.92 and steers over 1000 lbs averaged $1.09 lower than last week on average. Heifers 300-400 lbs averaged $25.37 lower than last week, 400-500 lbs were down $12.92, 500-600 lbs down $32.41, 600-700 lbs down $10.10, 700-800 lbs down $18.32, 800-900 lbs down $9.19 and heifers over 900 lbs averaged $1.10 lower than last week.
The Quebec Electronic Market reported for this week saw steers and heifers trading from $285.00-$288.25 dressed, down $8.75 from last week on average.
Alberta direct trade was light this week with dressed sales averaging $7.62 lower on the heifers and $10.22 lower for steers. The cash market saw dressed steers sell from $278.00-$285.00 and heifers $278.00-$288.50. Canfax reported that all sales this week were to local packers.
The US cash cattle trade for the week ending September 17th, as reported by the USDA Mandatory Price Report, saw live trade down $4.25-$4.58 on average while dressed deals sold $6.49-$6.73 lower. Fed steers and heifers ranged from $131.00-$137.50 live with steers averaging $134.93 down from $139.18 the previous week, while heifers averaged $135.04 down from $139.82. On the rail prices ranged from $210.00-$215.00 dressed with steers averaging $212.63 down from $219.12 the previous week, while heifers averaged $213.18 down from $219.91. This week sharply lower cattle futures, especially Tuesday and Wednesday, contributed to considerable price declines in the cash market. The USDA Mandatory Price report for Tuesday and Wednesday of this week lists live sales from $125.00-$132.00 for steers and $127.00-$132.00 for heifers. Steers averaged $128.88 down $6.05 from last week while heifers averaged $129.91 down $5.33. Dressed steers ranged from $199.00-$206.00 averaging $202.76 down $9.87 from last week's weighted average, while dressed heifers sold from $199.00-$208.00 dressed, averaging $202.74 down $10.44 from last week. Trade on Thursday was limited and today is very quiet. At noon today the cattle futures are sitting up the limit. At this point it appears that both sellers and packers are satisfied to sit today out and assess the current market situation. Jamie Gamble, Market Information Coordinator, Beef Farmers of Ontario.
