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

In Alberta last week, weighted average fed steer and heifer prices closed the week around $249.25/cwt live, $6/cwt higher than the previous week. Fed cattle prices established new record highs.

Competition on the Western Canadian market was good with packers actively making inquiries for cattle. Last week, a stronger price tone was noted from Wednesday to Thursday. Dressed sales were reported from $410.50-422/cwt FOB the feedlot. Cattle that traded were being scheduled anywhere from next week to the second half of May delivery. Alberta fed basis levels strengthened going from -$0.08/cwt to +$4.52/cwt last week.

Last week, the Canfax average feeder steer price was $7/cwt lower, while heifer prices eased $2/cwt. Alberta heifers weighing from 5-700 pounds traded $10-12/cwt lower than the previous week. Feeder steers weighing over 800 pounds were reported steady to $1/cwt lower. From their highs in mid-March, 750 pound steer price has decline $20/cwt. Over the same time frame, same weight heifer prices have dropped $7/cwt.

Alberta auction volumes totaled just over 35,000 head, 21,000 head larger than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending March 30th totaled 3,363 head. Year-to-date feeder cattle exports to the U.S. are 8 per cent larger than last year.

Alberta D2 cows traded $3/cwt higher and live trade was reported from $160-189/cwt. D3 cows averaged $190.75/cwt. Alberta cow prices are trading at $16/cwt premium compared to the Ontario market. Last week, butcher bulls traded $11/cwt higher, averaging $190.75/cwt, with a trading range from $169-225/cwt. Canadian butcher bull exports to the U.S. for the week ending March 30th totaled 422 head.

Bull

• April 1st Alberta Saskatchewan cattle on feed inventories are below last year, the five-year average
• Last week’s Alberta fed cash-to-futures basis was the strongest since July 2023
• Canadian Prime and AAA grading is record high

Bear

• Over the past three weeks, live cattle futures contracts have decline $13/cwt
• USDA revised its beef and pork production estimates upwards for 2024
• U.S. 50 per cent trim prices are 26 below last year and 12 per cent lower than 2022