Canfax Weekly Article | Report for the week of September 23, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $243/cwt live, $1/cwt higher than the previous week. US fed prices have just recently dropped below year ago levels whereas Alberta fed prices are still $10/cwt higher than a year ago. Light trade was reported last week with buying interest noted from all three Western Canadian packers. Dressed sales were reported from $401.50-405.50/cwt FOB feedlot. Cattle that traded were being booked anywhere from early October to early November delivery. Alberta fed cash to futures basis strengthened going from +$1.47/cwt to +$2.24/cwt last week. For the middle of August this is the second strongest basis on record.

Last week, the Canfax average feeder steer price was steady, while heifer prices eased $1/cwt. Alberta 550 pound steer calves were reported $4/cwt lower, trading at the lowest point since late January. Steers over 900pound have declined for seven straight weeks dropping $20/cwt. The Western Canadian feeder index closed the week at $350.64/cwt, stronger than the previous week. A larger percentage of last week’s auction volumes were forward delivery calf sales. Alberta auction volumes were just over 78,000 head, 22,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending September 7th were 1,361 head.

Alberta D2 cows fully steady and live trade was reported from $175-204/cwt. D3 cows averaged $171/cwt. From their highs in August butcher cow prices have dropped $12-13/cwt. Last week, butcher bulls traded $2/cwt higher, averaging $207.50/cwt, with a range from $190-225/cwt. Canadian butcher bull exports to the U.S. for the week ending September 7th totaled 650 head.

Bull

• According to the United States Department of Agriculture (USDA), the all-fresh beef price for the month August is record high
• The October/December live cattle contracts are trading at the highest point since early August
• Canadian beef shipments to Taiwan were the largest since the summer of 2020. In July, beef exports to South Korea were also strong up 183 per cent compared to last year.

Bear

• U.S. cattle on feed inventory totaled 11.2 million head, for the month of September this is the fourth largest cattle on feed inventory since reporting started.
• Choice beef cutout values are trading the lowest point since May.
• U.S. steer carcass weights (941 pounds) are 1 pound shy of their record highs set back last year