Canfax Weekly Article | Report for the week of April 29, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $257/cwt live, $1.50/cwt higher than the previous week. Since the beginning of the year, fed cattle prices have rallied 15 per cent.

Competition on the Western Canadian market was good with all three Western Canadian packers procuring cattle. Cattle that traded were being scheduled anywhere from next week to the second half of May delivery.

Last week’s Alberta fed cash to futures basis was reported at +$7.95/cwt, for the second half of April, this is the third strongest futures basis going back 30 years.

Last week, the Canfax average feeder steer price was $3/cwt higher, while heifer prices strengthened $7/cwt. Week over week, the largest price increase was on light weight heifer calves and feeder heifers over 900 pounds with prices advancing $10/cwt.

Alberta 900+ pound steers have traded steady for the past five weeks averaging on either side of $305/cwt. Last week, the only class of cattle to set new record highs was 6-700 pound steers. Alberta auction volumes totaled just over 24,000 head, 2,000 head smaller than the same week last year. Canadian feeder cattle exports to the US for the week ending April 13th totaled 4,038 head, year to date exports are up 6 per cent.

Alberta D2 cows traded $1/cwt lower and live trade was reported from $165-194/cwt. D3 cows averaged $164/cwt. Larger volumes of butcher bulls have been noted through commercial auction facilities. Last week, butcher bulls traded $2/cwt higher, averaging $193.25/cwt, with a trading range from $172-212/cwt. Canadian butcher bull exports to the US for the week ending April 13th totaled 697 head, year to date bull exports are down 28 per cent.

Bull

• Alberta fed basis levels are usually the strongest in early May
• For the middle of April U.S. cow (beef and dairy) is the smallest since 2017
• Alberta fed prices are the highest in North America

Bear

• U.S. drop credit values are the lowest since April 2021
• In Western Canada, there have been reports packers could start to scale back hours with potential of running four-day weeks
• Averaging 922 pound U.S. steer carcass weights are record large for the month of April