Canfax Weekly Article | Report for the week of November 14, 2022

The Canfax fed steer and heifer price closed the week around $183/cwt, $1.75/cwt higher than the previous week. Last week, dressed sales were reported from $298.50-302.50/cwt FOB the lot. Cattle were being scheduled for the second half of December delivery. Light volumes of AB fed cattle traded to the U.S. Depending on freight and dressing percentage, U.S. sales were working back to the mid $180’s/cwt FOB lot. Sales to the U.S. were at a premium over local deals. Western Canadian carcass weights weight are record large.

The Canfax average feeder steer price was $4/cwt lower, while heifer prices eased $5/cwt. Feeder steers and heifers weighing over 800 lb traded $5-8/cwt lower. Heavier weight feeder prices are trading at the lowest point since mid-August. Alberta 5-600 lb steer prices have averaged in the mid 260’s/cwt for the past six weeks. Western Canadian calf and feeder indices closed the week at $257.84/cwt and $240.45/cwt respectively. Cooler temperatures and poor road conditions in many areas resulted in lighter auction traffic. Last week, Alberta auction volumes totaled 57,000 head, 23,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending October 29^th totaled 2,708 head.  

Alberta D2 cows traded $4.75/cwt lower last week, and live trade was reported from $82‑101/cwt. D3 cows averaged $78.50/cwt. Butcher bulls traded $2.25/cwt lower, averaging $122.50/cwt and trade was reported from $105-143/cwt. Canadian butcher bull exports to the U.S. for the week ending October 29^th totaled 899 head, butcher bull exports have been higher than last year in nine out of the past ten weeks.

Bull.

• USDA is forecasting U.S. beef production in 2023 down 7.3% compared to 2022.
• Canadian Prime and AAA grading percentage remains above last year.
• In light of record U.S. beef production, beef cutout values are holding up well.

Bear.

• Since the summer U.S. poultry prices have come under significant pressure.
• Over the past three weeks, Alberta D2 cow prices have dropped $14/cwt.
• Western Canadian fed slaughter volumes have been below last year for five straight weeks.

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