Canfax Weekly Article | Report for the week of Aug 2, 2021

Canfax fed steer and heifer prices closed the week around $150/cwt, mostly steady with the previous week. After dropping $14/cwt since June the fed market has found some stability averaging in the low $150s/cwt for the past three weeks. Last week dressed sales were reported from $248.50-251.50/cwt FOB the lot. Most of the cattle that traded were being scheduled for mid to late August/early September delivery. All three western Canadian packers bought cattle but competition on the cash market was limited.  

Last week the Canfax average feeder steer and heifer price closed the week slightly higher. Heifers weighing over 800 lbs traded $1-2/cwt higher. Light weight stocker prices have been under pressure for the last few weeks. Since the middle of June, 500-599 lb steer prices have declined $15/cwt. Alberta weekly auction volumes totaled just over 23,000 head. Canadian feeder cattle exports to the US for the week ending July 17^th totaled 1,333 head.

Last week Alberta D2 cow prices traded $3.75/cwt lower and live trade was reported from $75-89/cwt. D3 cows averaged $72/cwt. Butcher bulls traded $2/cwt lower to average $111.50/cwt and live trade was reported from $100-128/cwt. Canadian butcher bull exports to the US for the week ending July 17^th totaled 1,112 head, the largest weekly export volume this year.

Bull.

• Beef cutouts did strengthen last week as retailers are covering their Labor Day beef needs
• US 50% trim prices set new annual highs and are 132% higher than last year
• Western Canadian slaughter plants are running at or above capacity and Saturday shifts are being utilized

Bear.

• Alberta fed cash to futures basis levels weakened last week; for the end of July this is the weakest basis since 2015
• Over the past six weeks Alberta D2 cow prices have dropped $20/cwt
• Based on the five-year average, fed cattle prices usually trend lower from now until the middle of September

For over 50 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.

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