Canfax Weekly Article | Report for the week of April 22, 2024

In Alberta last week, fed steers and heifers set new record highs at $256.40/cwt and $254.40/cwt respectively. Fed steer and heifer prices have rallied $32 – 38/cwt since the beginning of the year compared to a rally of $37 – 40/cwt for the same period last year.

Dressed sales last week were $425-432/cwt delivered with pick up times for cattle traded one to two weeks out. Interest from packers started with a solid tone and strengthened throughout the week. The Alberta cash-to-futures basis was at a premium for two consecutive weeks for the first time this year at $7.33/cwt.

Last week, Alberta auction volumes were over 26,000 head, 5 per cent lower than the same week last year, but up 19 per cent compared to the five-year average. Alberta grass type steers traded steady to $4/cwt weaker, while heavyweight steers traded steady to $5/cwt stronger.

Alberta heifer prices were steady to $15/cwt softer; with only 5-700 pounds trading stronger at $3-7/cwt. For the week ending April 6th, feeder cattle exports to the US were 3,218 head, up 22 per cent from last year. Year-to-date exports at 36,939 head, are up 9 per cent from a year ago.

Last week, Alberta D2 cows traded $5/cwt higher averaging $180/cwt, setting a record high. D3 cows traded steady averaging $162/cwt, they remain near record high levels. Similarly, butcher bulls traded steady averaging $191/cwt.

Year-to-date Western Canadian cow slaughter is 5 per cent lower than last year, but 7 per cent larger than 2022 and 10 per cent larger than 2021.

Bull

• Fed steers and heifers are trading at all time high prices
• Alberta cash-to-future basis has been at a premium for two consecutive weeks for the first time this year
• Butcher cow market remain record high prices

Bear

• U.S. carcass weights remain record large despite recent drop
• Lightweight feeder heifer prices have counter seasonally softened
• U.S. beef production for 2024 has recently been revised higher