Many cattle producers are wondering about the cull cow market this fall. Jason Wood, provincial livestock market analyst with Alberta Agriculture and Forestry, breaks down the numbers.
Wood says that overall, the 2018 Alberta cull D1-2 cow market has been in line with the historical seasonal trend. “The market has been stable with the monthly provincial price ranging between just over $85 per cwt to $96.50 per cwt.”
Provincially, cull cow prices averaged $85.50 per cwt in September which was down $4.50 per cwt from August. “For the first half of October,” says Wood, “Cull cows were $85.34 per cwt or just under $1,200 for a 1,400 lb. cow, putting prices this fall about 3.5 per cent below last year.”
Woods adds that on a cash basis, Alberta’s cull cow market has traded at a premium to the U.S. cull cow market in 2018. “During the week of October 15, 2018, the Alberta cull cow market was $9.60 per cwt over the U.S., and that is more than $3 per cwt higher than the five year average for the same week.”
Wood says based off the seasonal trend, “Cull cow prices could range between mid-$70 and mid-$80 per cwt for the remainder of 2018.”
As for a Canadian cattle slaughter update, Wood says that the number of cattle processed has increased in 2018. “From January to October 5, 2018, the number is 2.36 million head, 6.6 per cent above 2017 and 13.1 per cent above the five year average.”
“Year to date fed steer and fed heifer slaughter is up 5.2 per cent and 5.1 per cent, year over year,” he notes. “Year to date cull cow slaughter is up 15 per cent year over year and 25.6 per cent above the five year average.”
But, Wood adds, “We have to remember that the higher cow slaughter rate is being influenced by lower cull cow exports, and strong domestic and export beef demand are supportive market factors as well.”
Source : Alberta agriculture and forestry