Canfax Weekly Article | Report for the week of September 11, 2023

The Canfax fed steer price closed the week at around $232/cwt, $0.50/cwt higher than the previous week. Last week, dressed sales were reported from $386.75‑387.50/cwt FOB the lot. Cattle that traded were being booked for the first half of October delivery. Alberta fed cash‑to‑futures basis levels weakened going from -$10.48/cwt to -$17.84/cwt. For the beginning of September, this is one of the weakest basis on record. For the week ending September 2nd, Western Canadian fed slaughter totaled just over 42,000 head, 2% lower than last year.

The combination of lower feed grain prices and 2024 live cattle contracts setting new highs, have supported the calf/feeder market. The Canfax average feeder steer and heifer prices were $2-3/cwt higher. Week over week, the largest price gains were on 4-500 lb steers and 3-400 lb heifers, with prices advancing $11-13/cwt. Over the past four weeks, Alberta 5-600 lb steer/heifer price have rallied $25-35/cwt. On heavier weight feeders, the steer/heifer price spread remain record large. The Western Canadian feeder index closed the week at $333.73/cwt, $0.91/cwt higher than the previous week. Alberta auction volumes totaled just over 28,000 head, 9,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending August 26th totaled 2,080 head.

Alberta D2 cows traded $1/cwt lower and live trade was reported from $135‑154/cwt. D3 cows averaged $129/cwt. Butcher bulls traded $1.25/cwt lower, averaging $157.25/cwt, with a trading range from $145‑175/cwt. Year‑to‑date, Western Canadian cow slaughter volumes are 7% larger than last year. Canadian butcher bull exports to the U.S. for the week ending August 26th totaled 1,102 head, 1% lower than the same week last year.

Bull.

• Over the past month, U.S. packer margins have gone from negative to positive.
• The 2024 live cattle contracts set new highs last week.
• In Western Canada, summer market ready fed cattle supplies have been very manageable.

Bear.

• In July, U.S. beef exports were 22% lower than last year.
• U.S. beef retail featuring has been somewhat disappointing this summer, running below last year and the five-year average.
• Seasonally, Alberta cow prices are fighting an uphill battle as prices have decline in 14 out of the past 15 years from August to September.