Kevin Grier's Canadian Boxed Beef Report suggests cattle kills are going to stay low in coming weeks.
Grier's report is quoted in the Beef Farmers of Ontario's most recent weekly cattle comments.
He says beef demand seems poor at both the consumer and wholesale levels and retail margins on beef are poor compared to the other main meats.
Grier says the result is that distributors are only buying what they have sales for or on limited opportunities.
Larger receipts of fed cattle, cull cattle and replacements were reported at Ontario auction markets last week.
Fed cattle receipts were up 152 on the week and 140 on the year.
The average fed steer price was up 1.30 on the week, almost 27 dollars lower on the year.
The average fed heifer price was down 1.16 on the week and just over 25 dollars lower on the year.
Cull cow sales were up over 370 on the week and over 530 on the year with the average price down almost a dollar on the week and over 37 dollars on the year.
Replacement cattle sales were up over a thousand head on the week but 760 fewer than a year ago.
Beef Farmers of Ontario says trade was softer to under pressure at easier prices early in the week then steady to the week's decline.
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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 March 10, 2016 Larger receipts of 695 fed steers and heifers sold through auction markets this week, up 152 from last week and 140 more than one year ago at this time. Fed steers sold from $154.02-$178.31 with a weekly weighted average price of $168.67, up $1.30 from last week, but $26.81 below year ago prices. Fed heifers ranged from $153.53-$174.19 averaging $165.21 down $1.16 from last week and $25.12 below year ago prices. Auction market reports started this reporting period as active with prices strong and higher, up $1.00-$3.00. By Wednesday the market came under pressure with good quality cattle down $2.00-$3.00 cwt, and all other classes reported as much lower. Thursday was steady to the week's lower market.
The Ontario railgrade market was steady to last Wednesday's decline, with prices for the entire week from $284.00-$286.00 dressed for steers and $283.00-$285.00 for heifers. Delivery of these sales ranged from this week to the second last week of March. This week's average price is $0.25 below the previous week and $32.00 below last year at this time.
The Canadian Boxed Beef Report released by Kevin Grier notes that "beef demand seems poor at the consumer and wholesale levels. Retail margins on beef are poor relative to the other main meats" resulting in limited fresh beef features in flyers across Canada. "Carcass weights should begin to seasonally lighten. Kills are low and are going to stay low in coming weeks. Distributors are only buying what they have sales for or on limited opportunities. Buying frequency is increasing while tonnage declines."
Larger receipts of 2,675 cull cows sold through auction markets this week up 374 from last week and 537 more than this time last year. Cull cows traded from $75.58-$99.66 with a weekly weighted average price of $87.91 down $0.94 from last week and $37.60 below last year at this time. Auction markets reported demand as good with prices starting the week as steady to barely steady, by midweek it was barely steady to easier and ended the week on a strong active trade.
Larger receipts of 4,356 replacement cattle were on offer this week at Ontario auction markets, up 1,067 head from last week but 760 less that the same time last year. Auction markets reported trade as softer to under pressure at easier prices early in this reporting period. As the week progressed the market was steady to the week's decline. Actual average prices this week for steers 400-500 lbs were down $0.31 from last week on average, 500-600 lbs down $11.61, 600-700 lbs down $5.52, 700-800 lbs down $10.18, 800-900 lbs down $7.10, 900-1000 lbs down $5.97 and steers over 1000 lbs averaged $3.61 below last week on average. Heifers 300-400 lbs averaged $9.07 below last week, 400-500 lbs up $4.97, 500-600 lbs down $8.00, 600-700 lbs down $10.07, 700-800 lbs down $0.98, 800-900 lbs down $0.57 and heifers over 900 lbs averaged $4.93 below last week on average.
The Quebec Electronic Market this week ranged from $280.00-$282.50 dressed, down $0.99 from last week on average.
The Alberta cash cattle trade was too light this week to establish a price report. Canfax reports: "light trade develop with dressed sales 2.00-5.00 lower than the previous week. US interest was noted but there was little if any price advantage to move cattle south. Tentatively cash to futures basis levels did weaken this week. Some producers are only moving the heavy cattle that need to go while others will carry cattle into next week."
US cash cattle trade the week ending March 3rd, was limited to light with business developing in the north Friday afternoon/evening at steady to slightly stronger prices. Trade in the south did not develop until Saturday morning and was also limited to light in volume with prices steady to slightly lower. Live sales ranged from $130.75-$137.00 with steers averaging $135.76 down $0.26 from the previous week, while heifers averaged $135.53 down $0.74 (reported by the USDA Mandatory Price Report). On the rail steers and heifers sold from $212.00-$215.00 dressed, with steers averaging $213.91 up $0.70 from the previous week, while heifers averaged $213.98 up $0.59. This week limited sales in parts of the north on Tuesday were steady at $214.00 dressed, while a few sales in parts of the south were at $136.00 live, also steady. Otherwise the market has been very quiet. At time of reporting, some light trade has developed in the north at $220.00 dressed, up $6.00 from last week. Bids in the south are at $136.00 live with sellers showing no interest as they hold out for asking prices which are around $140.00-$142.00 live. Asking prices in the north are now at $225.00 dressed. Business in the south should develop at any time while trade in the north is expected to continue into the afternoon. Jamie Gamble, Market Information Coordinator, Beef Farmers of Ontario.
