Canfax Weekly Article | Report for the week of August 15, 2022

Establishing new annual highs, the Canfax fed steer and heifer price closed around $176.75/cwt. Last week, dressed sales were reported from $294.50-296.50/cwt FOB the lot. Most of the cattle that traded were being scheduled for early September delivery. Competition on the cash market was decent with all three Western Canadian packers buying cattle. Premiums were noted if cattle graded over 70% AAA. Alberta fed cash to futures basis was reported at -$0.55/cwt, right in line with the three-year average.

The Canfax average steer and heifer price closed the week $1.50-2.50/cwt higher. Since the first half of July steer over 800 lb have increased $16-20/cwt, while over that same time frame heifers have strengthened $20-30/cwt. Last week 7-800 lb steers and heifers traded steady to $6/cwt higher, prices are $22-27/cwt higher than last year. Last week Alberta 8-900 lb steers average around $220/cwt, for the first half of August this is the highest price since 2015. Alberta weekly auction volumes totaled 14,500 head, 40,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending July 30th totaled 3,320 head. YTD feeder cattle exports to the U.S. are 157% larger than last year.

Alberta D2 cows traded $0.75/cwt higher last week, and live trade was reported from $105‑124/cwt. D3 cows averaged $100/cwt. Butcher bulls were steady averaging $130.25/cwt and trade was reported from $112-149/cwt. Canadian butcher bull exports to the US for the week ending July 30th totaled 848 head, in three out of the past four weeks Canadian bull exports have been below last year.

Bull.

• April/June 2023 live cattle contract set new high last week.
• Total U.S. beef exports for the month of June were 15% larger than last year.
• AB/SK cattle on feed inventories are below last year.

Bear.

• From their lows in late June, Western Canadian steer carcass weights have increased 60 lb.
• Poultry remains more competitively priced than beef.
• Over the past three weeks Western Canadian fed slaughter 8% lower than last year and 2% lower than the five-year average.

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.

Those interested in becoming Canfax members can sign up on the website at www.canfax.ca