Canfax Weekly Article | Report for the week of August 18-22

The summer fed market has been rather impressive as fed prices established new highs. Only once in the past 50 years have fed prices ever established annual highs in August, and that was in 2008. Last week, the Canfax average fed steer and heifer price closed around $301/cwt live, $1.50/cwt higher than the previous week. Light trade was reported last week with dressed sales reported from $502.00–504.50/cwt FOB the feedlot. Buying interest was noted from all Western Canadian packers. Cattle that traded were scheduled for delivery throughout the month of September. U.S. packer interest was noted, and light volumes of Western Canadian fed cattle were marketed South. These cattle will be priced off the five-area average.

Last week, the Canfax average feeder steer and heifer price was $2–6/cwt higher. Week over week, the largest price jump was on steers over 800 pounds, with prices advancing $14–17/cwt. Heavier weight feeder prices are $100–113/cwt higher than a year ago. Last week, trading via electronic/video AB/SK steers weighing from 600–699 pounds for October delivery averaged $575/cwt. Over the past month, forward delivery prices have increased $18/cwt. Forward delivery prices are at a premium over the spot market. Alberta auction volumes were just over 25,000 head, 10,000 head larger than last year. Canadian feeder cattle exports to the U.S. for the week ending August 2nd totaled 2,301 head.

Last week, Alberta D2 cows traded $3/cwt higher, averaging $219/cwt with a range from $205–240/cwt. D3 cows averaged $199.50/cwt. Butcher bulls traded $5/cwt higher, averaging $236/cwt, with a range from $200–260/cwt. Canadian butcher bull exports to the U.S. for the week ending August 2nd were 711 head.

Bull

• U.S. 90% trim prices have been impressive, holding at record high levels
• Canadian beef exports for the month of June were 13 per cent higher than last year
• The all-fresh beef retail price for the month of August is record high

Bear

• Last week, Alberta cow prices were trading at a $15/cwt discount against the U.S. market, the largest discount seen this year
• In June, U.S. beef export volumes were the smallest in five years
• Last week, U.S. cattle slaughter was estimated at 530,000 head, the smallest non-holiday slaughter volume seen this year