Canfax Weekly Article | Report for the week of October 15, 2024

Alberta dressed sales last week were reported from $405-408/cwt delivered, cattle that traded were being booked anywhere from the second half of October to mid-November delivery. On a live basis, steers and heifers traded within $1/cwt of steady money. The weekly weighted average for Alberta steers was $242/cwt with heifers at $240/cwt, packer competition was limited. Last week, Western Canadian steer carcass weights moved below the previous year for the same week. In recent weeks, smaller heifer slaughter volumes have been noted with volumes below last year and the five-year average.

Last week, steers and heifers under 500 pounds were a wide-ranging $5-14/cwt stronger than the previous week. Steers 5-700 pounds were $8/cwt stronger than the previous week, with heifers $2-4/cwt stronger. Steers over 700 pounds ranged from $1/cwt stronger to $3/cwt softer, with price pressure noted on steers over 900 pounds. Heifers over 700 pounds were steady to $3/cwt softer. Weekly exports to the U.S. have been below a year ago for the past 15 consecutive weeks. Forward delivery sales were higher than the previous week for 4-499 pound, 5-599 pound, and 6-699 pound feeders.

The Canadian non-fed market continued to be under seasonal pressure last week. All classes of Alberta non-fed cattle traded lower week over week, except rail grade cows which managed to trade steady. Alberta D2 cows averaged just shy of $177/cwt last week, with D3 cows near $164.25/cwt. Butcher bulls through auction marts were $5.25/cwt softer to $195/cwt.

Bull

• Most classes of Alberta feeder steers and heifers rallied higher last week
• U.S. cutouts rallied higher over the last week; Choice closed near US $310/cwt
• The October USDA WASDE report revised the 2024 corn crop higher. Corn futures were lower on the news

Bear

• The October WASDE Report revised U.S. beef production for 2024 up from the September estimate and is projected to be steady with a year ago
• Fed steer and heifer prices continue to move sideways near second half of the year lows
• 50 per cent fatty trim was within $15/cwt of its annual low last week