Canfax Weekly Article | Report for the week of October 17, 2022

The Canfax fed heifer price closed at $181.75/cwt, $1.75/cwt higher than the previous week. Last week, dressed sales were reported from $296.50-298.50/cwt FOB the lot. Cattle that traded locally were being scheduled for the second half of November delivery. Light volumes of AB fed cattle traded to the US. Depending on freight and dressing percentage, US sales were working back to the mid 180’s/cwt FOB lot. Cattle that traded to the US would be picked up in two weeks. Western Canadian fed slaughter for the week ending October 8th totaled over 42,000 head, 11% lower than the same week last year.

The Canfax average feeder steer price was $2.50/cwt lower, while heifer prices eased $4.25/cwt. Over the past two weeks, on average steers weighing from 5-700 lbs have declined $7.25/cwt, while heifer prices over that same time frame have dropped $11.50/cwt. Last week AB 8-900 lb steers and heifers traded $3/cwt lower. Across Western Canada the largest year over year price increase is on 3-400 lb steers, with prices up $57-60/cwt. Western Canadian calf and feeder indices closed the week at $259.71/cwt and $246.28/cwt respectively. Last week Alberta auction volumes totaled 57,000 head, 3,000 head smaller than last year. Canadian feeder cattle exports to the US for the week ending October 1st totaled 1,757 head. YTD Canadian feeder cattle exports to the US are 83% larger than last year.

Alberta D2 cows traded $0.25/cwt higher last week, and live trade was reported from $95‑114/cwt. D3 cows averaged $90/cwt. Butcher bulls traded $2.75/cwt lower, averaging $130/cwt and trade was reported from $118-148/cwt. Canadian butcher bull exports to the US for the week ending October 1st totaled 1,302 head, 52% higher than the same week last year.

Bull

• Third quarter AB/SK feedlot placements are below last year
• US beef cutout values should seasonally start moving higher
• US by-product values are trading at the highest point this year

Bear

• For the middle of October, Alberta fed cash-to-futures basis levels are the weakest since 2004
• Western Canadian steer carcass weights are only three pounds shy of their record high set back in November 2020
• There are still some September contract cattle that have not yet been delivered to the packer