Southern Alberta feedlot - LNN

By Dori Modney with files from Alberta Agriculture

Reduced forage availability leads to above average Alberta cattle sales

Nov 16, 2021 | 4:39 PM

LETHBRIDGE, AB. — Strained feed supplies in Alberta have prompted producers to sell off cattle earlier than normal and increase cow culling.

Jason Wood, the provincial livestock market analyst with Alberta Agriculture, Forestry and Rural Economic Development, confirmed the trend.

`”Producers marketed grass and background cattle one to two months ahead of schedule to maximize feed availability for their core beef herd.”

Statistics from the province show weekly auction volumes have been above the five-year average in all weeks but one since the end of June.

Over 700,000 cattle were sold in Alberta over the last four months, which is an increase of 34-per cent from the previous year and 26-per cent over the five-year average. Weekly auction volumes are expected to remain high through-out November`s fall calf run.

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Reduced feed availability has also increased culling, which, in turn, puts pressure on prices. The Alberta D2 cow market has recorded increased seasonal price declines.

The last five weeks have seen D2 cow prices decline more than 24-per cent or $20 per hundred weight (cwt) – $280 per head on 1,400 pound cow. By comparison, the five-year average shows a 6-per cent decline or $77 per head.

Estimated Canadian cow exports are about 9-per cent higher this year than 2019 and 3-per cent higher than the five-year average. Wood notes the specific reason for the numbers.

“Higher exports are a factor of lower than average slaughter demand for cows and high feed costs that have reduced demand for feeder cows.“

The average monthly cow price peaked in June and has been under pressure because of drought conditions and feed supply and cost. D2 cows averaged $61.29 per cwt, down 12-per cent lower than the same week a year ago and 24-per cent below the same week on the five-year average.

Wood says the price discount will continue to encourage U.S. buying.

“Prices usually hit their seasonal low in late November then start to seasonally strengthen into year end.”

More details are listed on the Alberta Agriculture website.https://www.alberta.ca/cattle-prices-and-above-average-sales.aspx