Canfax Weekly Article | Report for the week of December 2, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $248/cwt live, $1/cwt higher than the previous week. Light trade was reported last week with dressed sales reported from $406.50-409.50/cwt FOB feedlot. Last week, buying interest was noted from three different US packers. Light volumes of Western Canadian fed cattle were committed to the U.S. packer on a formula price. Negotiated cash sales to the U.S. were in the mid to upper $250’s/cwt FOB feedlot and were at a premium over local deals. Western Canadian fed slaughter for the week ending November 23rd totaled 44,800 head, 5 per cent larger than last year. This is the third largest slaughter volume seen this year.

Last week, the Canfax average feeder steer and heifer prices were $6/cwt higher. Calf prices continue to surge higher setting new highs on a weekly basis. Over the past month, the largest price increase has been on 5-600 pound steer and heifer calves with prices advancing $30-35/cwt. Last week, steers weighing over 800 pounds traded $2-4/cwt stronger while same weight heifers were steady to $1/cwt lower. Alberta auction volumes were just over 50,000 head, 16,000 head larger than last year. Canadian feeder cattle exports to the U.S. for the week ending November 16th were 2,495 head.

Last week, Alberta D2 cows traded fully steady and live trade was reported from $156-188/cwt. D3 cows averaged $155/cwt. Feeder cow buyers continue to be very active on the non-fed market. Last week, butcher bulls traded fully steady, averaging $187.50/cwt, with a range from $165-230/cwt. Canadian butcher bull exports to the U.S. for the week ending November 16th were 858 head, 5 per cent larger than the same week last year.

Bull

• For the month of November Western Canadian cow slaughter volumes are on track to be the smallest since 2012
• Based off the five-year average Alberta fed basis levels historically strengthen from November to December
• In 8 out of the past 10 years fed cattle prices have established fourth quarter highs in December

Bear

• U.S. Cattle on feed inventories on November 1st were 12.0 million head, the third largest on record
• From their highs in late October, Choice chuck values have declined 16 per cent
• U.S. pork cutout values are trading at the lowest point since mid February