Canfax Weekly Article | Report for the week of July 5, 2021

Canfax fed steer and heifer prices closed last week around $157.50/cwt, $5/cwt lower than the previous week. Dressed sales were reported from $260.50-264.50/cwt FOB the lot. All three Western Canadian packers procured cattle last week. In some instances, packers were limiting the amount of cash cattle they were buying from each producer. Most of the cattle that traded were being scheduled for the week of August 2^nd delivery. Alberta fed cash to futures basis weakened going from +$12.23 to +$5.82/cwt last week.

Last week the Canfax average feeder steer price closed $0.50/cwt lower while heifer prices on average increased $1/cwt. All classes of cattle are trading higher than last year. Heifer calves and light weight stockers traded steady to $4/cwt higher. Steers over weighing 900 lbs have traded higher for eight straight weeks. The Western Canadian feeder index closed the week at $199.74/cwt. With extreme heat along with the July 1^st holiday, auction volumes were light. Alberta weekly auction volumes totaled just over 11,000 head. Canadian feeder cattle exports to the US for the week ending June 19^th totaled 1,721 head.

Last week Alberta D2 cow prices traded $6.25/cwt lower and live trade was reported from $90-105/cwt. D3 cows averaged $85.50/cwt. Butcher bulls traded $0.50/cwt higher to average $118/cwt and live trade was reported from $100-139/cwt. Canadian butcher bull exports to the US for the week ending June 19^th totaled 634 head.

Bull.

• US steer carcass weights are the smallest since August 2019
• Live cattle futures for early 2022 hit new contract highs last week

Bear.

• Western Canadian cow slaughter has been larger than last year and the five-year average
• Choice cutout values have closed lower for seventeen consecutive trading days, dropping over $50/cwt
• Since the beginning of June pork cutout values have declined 14%

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Photo: Canada Beef Inc.