Canfax Weekly Article | Report for the week of June 10, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $264.50/cwt live, $3/cwt higher than the previous week. This is the third consecutive week that fed steer prices have averaged over $260/cwt.

Dressed sales were reported from $426.50-438.50/cwt FOB the feedlot. Most of the cattle that traded would be picked up in 2-3 weeks, there were a few cattle that would not be picked up until the second half of July. Last week’s Alberta fed cash-to-futures basis was reported at +$15.57/cwt, for the beginning of June, this is the third strongest basis on record.

Last week, the Canfax average feeder steer price was $2.25/cwt lower, while heifer prices strengthened $3.25/cwt. Week over week, the largest price jump was on heifers over 800 pounds with prices advancing $5-12/cwt. Same weight steer prices were reported $3-4/cwt higher.

The Alberta 550 pound steer price has been relatively flat for the past five weeks averaging in the mid to upper $420’s/cwt. Alberta auction volumes totaled just over 16,000 head, 7,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending May 25th totaled 3,994 head.

Alberta D2 cows traded $4.25/cwt higher and live trade was reported from $180-217/cwt. D3 cows averaged $175.25/cwt. Alberta cow prices have traded higher in 19 out of the past 21 weeks. Butcher bulls traded $1.50/cwt higher, averaging $205.50/cwt, with a trading range from $180-243/cwt. Canadian butcher bull exports to the U.S. for the week ending May 25th totaled 463 head.

Bull

• U.S. pork exports for the month of April were 14 per cent larger than last year
• Based on the five-year average, June is traditionally when the strongest Alberta/Nebraska cash-to-cash basis occurs
• Last week Choice cutout values established new annual highs

Bear

• Fed cattle in Eastern Canada are beginning to back up as Cargill Guelph employees remain on strike
• China recently banned U.S. beef shipment from one U.S. beef slaughter plant in Greely, CO, after finding trace amounts of ractopamine
• In April, U.S. beef exports were 3 per cent below last year. Year-to-date beef exports to Japan and South Korea are below last year