Canfax Weekly Article | Report for the week of May 23, 2022

The majority of trade last week was reported dressed from $288-293/cwt delivered and comparable live trade was reported at $172.50/cwt. Steer prices firming over $1/cwt higher to average $173.42/cwt. Western Canadian fed slaughter for the week ending May 14th was 7% larger than the previous week, totaling 45,376 head. YTD Western fed slaughter volume was 4% larger at 811,203 head. Canadian fed cattle/cow exports to the U.S. for the week ending May 7th were 3% lower than the previous week at 9,060 head and were 13% larger than the same week last year.

Alberta steers weighing from 5-900 lb established new annual highs last week. Since the beginning of the year, 6-700 lb steer prices in Alberta have rallied 11%, while Ontario prices have increased 15%. Alberta 650 lb steers are the highest since 2017, and Ontario the highest since 2016. AB/SK heifers weighing from 900-1,000 lb for late summer/early fall delivery traded from $190-203/cwt, with a weighted average price of $199.35/cwt based at 966 lb.

Non-fed prices remain historically strong and with tight feed supplies and slow pasture growth in many areas, producers are not wasting anytime sending their calving culls to town. Western Canadian cow slaughter for the week ending May 14th, totaled just over 6,800 head, right in line with 2019 and 2021. Butcher bull prices strengthened $2.50/cwt and are $11/cwt higher than last year. Canadian butcher bull exports to the U.S. totaled 902 head, the second largest weekly export volume seen this year.

Bull.

• Fed prices have strengthened contra seasonal over the past five weeks.
• Market ready feedlot supplies should tighten modestly moving forward.
• Scattered rains across the prairies have improved moral.

Bear

• The USDA’s Cattle on Feed report (pdf) indicated May 1st on feed inventories were 2% larger.
• Fed steers set a new five-year high, but feeding margins remain deeply in the red.
• Thanks to inflation, cutouts are struggling to gain typical seasonal strength.

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