Canfax Weekly Article | Report for the week of May 10, 2021

Canfax fed steer and heifer prices closed last week around $161/cwt, $3.50/cwt higher than the previous week. Last week dressed sales were reported from $262.00-273.50/cwt FOB the lot. Cattle that traded last week were being scheduled for the second half of May delivery. Western Canadian fed slaughter for the week ending May 1^st totaled just over 44,000 head, for the end of April this is the largest slaughter since 2005. With stronger prices and stronger basis levels, last week’s cash offering was cleaned up.

Last week the Canfax average feeder steer price closed the week $2.75/cwt lower while heifer prices eased $1.25/cwt. The largest week over week price declines were on steer calves with prices down $4-8/cwt. Last week heifers weighing from 4-800 lbs were reported $1-3/cwt softer. Steers over 800 lbs traded steady to $1/cwt lower, same weight heifers traded steady to $2/cwt higher. Western Canadian calf and feeder indices closed the week at $219.40/cwt and $189.23/cwt respectively. Alberta weekly auction volumes totaled just over 23,000 head. Canadian feeder cattle exports to the US for the week ending April 24^th totaled 3,046 head.

Last week Alberta D2 cow prices traded fully steady and live trade was reported from $88-106/cwt. D3 cows averaged $83/cwt. Butcher bulls traded $3.50/cwt lower to average $112.25/cwt and live trade was reported from $100-130/cwt. Canadian butcher bull exports to the US for the week ending April 24^th totaled 408 head.

Bull.

• US beef exports for the month of March were 13% higher than last year
• Last week Alberta fed cash to cash basis was the strongest on record
• Western Canadian cow slaughter for the month of April was 26% lower than 2019 and 23% lower than 2018

Bear.

• US weekly cattle slaughter volumes were lower than expected at 638,000 head
• US beef cutout values were stronger yet fed cash prices continue to trend lower
• US steer carcass weights are 7 lbs heavier than last year and 32 lbs larger than the five-year average

For over 50 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.

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Photo: Canada Beef Inc.