Canfax Weekly Article | Report for the week of May 29, 2023

The Canfax fed steer and heifer price closed the week at around $237.25/cwt, $2/cwt higher than the previous week. Fed prices have strengthened in 22 out of the past 23 weeks. Last week, dressed sales were reported $395.50-398.50/cwt FOB the feedlot. Cattle that traded were being scheduled anywhere from immediate delivery to the second half of June delivery. Alberta fed cash-to-futures basis weakened, going from +$14.28/cwt to +$11.59/cwt last week. Western Canadian packers have scaled back hours to match tighter cattle supplies. Western Canadian fed slaughter was 10% lower than last year.  

The Canfax average feeder steer price was fully steady, while heifer prices eased $0.50/cwt. Week over week, the largest price declines were on lightweight heifer calves with prices $3.50-4.50/cwt weaker. Feeders weighing over 900 lb traded $1.50-2/cwt higher. Over the past four weeks, Alberta 550 lb steer calf price has averaged on either side of $345/cwt. Alberta calf prices have been trading at a $2-6/cwt discount against the U.S. market. The Western Canadian feeder index closed the week at $295.54/cwt. Alberta auction volumes totaled just over 21,000 head, 2,000 head larger than week last year. Canadian feeder cattle exports to the U.S. for the week ending May 13 totaled 5,043 head.

Alberta D2 cows traded $6/cwt higher than the previous week, and live trade was reported from $140‑164/cwt. D3 cows averaged $138.25/cwt. Butcher bulls traded $3/cwt higher, averaging $161/cwt, with a trading range from $145-180/cwt. Canadian butcher bull exports to the U.S. for the week ending May 13 totaled 550 head, 51% lower than the same week last year. Cow prices established new record highs, while butcher bull prices are $12/cwt shy of their highs set back in 2015. 

Bull:

• According to USDA, total beef in cold storage for the end of April is 16% lower than last year.
• Western Canadian carcass weights are the smallest they have been all year.
• No trade restriction from other countries have been reported following the discovery of an atypical BSE case that originated from a Tennessee cow.

Bear:

• Canadian beef exports in March were below last year.
• The near-by lean hog contract established new contract lows last week.
• U.S. beef retail featuring has been below the five-year average.