Canfax Weekly Article | Report for the week of April 4, 2022

Last week the Canfax fed steer and heifer price closed around $162.50/cwt, steady with bids and sales during the previous week. Alberta fed prices have averaged in the low $160’s/cwt for the past seven weeks. Dressed sales were reported from $272.00-273.50/cwt FOB lot. Cattle that traded last week were being scheduled for the week of April 25^th and May 2^nd delivery. Over the past four weeks, western Canadian fed slaughter averaged 43,761 head/week compared to 41,003 head/week last year.

The Canfax average feeder steer and heifer price closed the week $2.00-2.50/cwt higher. Heifers weighing from 6-800 lb traded $1-2/cwt higher. Trading $1/cwt stronger, 7-800 lb steers established new annual price highs last week. Alberta feeders weighing over 900 lb are $8-10/cwt higher than last year. The western Canadian calf index closed the week at $224.37/cwt. Alberta weekly auction volumes totaled just over 25,000 head last week, 6,000 head more than last year. Canadian feeder cattle exports to the U.S. for the week ending March 19^th totaled 7,645 head.

Alberta D2 cows traded $0.75/cwt higher last week and live trade was reported from $88-107/cwt, D3 cows averaged $86/cwt. Butcher bulls traded $3.25/cwt higher to average $121/cwt and live trade was reported from $100-140/cwt. Butcher bull prices are at the highest point since July 2017. Canadian butcher bull exports to the US for the week ending March 19^th totaled 585 head, steady with the same week last year.  

Bull.

• In 11 out of the past 15 years, Alberta fed prices have strengthened from March to April.
• June and July 2022 lean hog contracts established new highs last week.
• Seasonally, carcass weights should decline as more fed calves start entering the slaughter mix.

Bear.

• Western Canadian packers are comfortably bought out in front, suggesting sellers don’t have a lot of leverage.
• For the end of March, Alberta fed cash to futures basis was the weakest since 2014.
• U.S. March 1^st cattle on feed inventories are record large.

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