Canfax Weekly Article | Report for the week of Aug 16, 2021

Last week’s dressed sales ranged from $253-254/cwt delivered. Cattle were being scheduled for the first half of September delivery. For the week ending August 7, Western Canadian cattle grading B4 totaled 735 head, the second largest volume seen all year. Warmer temperatures and possibly more overnight delivery cattle could be causing an increase in dark cutters (B4). Alberta fed prices remain at a discount to the Nebraska and Ontario markets.

Light calves less than 500lb traded mixed last week while benchmark calves from 5-700lb saw prices pressured lower. Generally good demand continued for large quality lots of feeders over 700lb to place against the 2022 first quarter fed market. Calves less than 700lb for deferred September-November delivery traded at a marked discount to spot last week while larger feeders over 700lb saw a moderate premium. Total weekly sale volumes surged 122% larger than the previous week to 55,247 head. Feeder exports to the US for the week ending July 31 were 13% larger than the previous week at 2,612 head and 43% larger than the same week last year.

An ample volume of non-fed cattle was on offer last week and slaughter cow prices were pressured $1.50/cwt lower.  Alberta D2 cows averaged $80.50/cwt and were over $13/cwt lower than the five-year average. Compared with Ontario, Alberta D2 slaughter cows last week traded at a $3/cwt discount. Dressed cow bids softened as the week progressed with reports in a wide $145-152/cwt delivered trade range. Butcher bull live prices were sharply $4.60/cwt lower last week to average $106.40/cwt. Western Canadian non-fed slaughter for the week ending August 7th was 11% lower than the previous week at 5,833 head and YTD volumes were 12% larger.

Bull

• Cutout values continue to surge seasonally higher
• Good beef demand continues to fuel large harvest levels
• Canadian June beef exports were above last year and the 5 year average

Bear

• Packers are long bought with lots of cattle to work through
• The USDA revised corn yield estimates lower
• Drought conditions will likely result in increased cow slaughter and a reduced cow herd

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