Canfax Weekly Article | Report for the week of August 19, 2024

In Alberta last week, fed prices remained over $250/cwt for the nineteenth consecutive week. When compared their June high, fed prices have declined 4 per cent; whereas last year fed prices dropped 6.5 per cent from their June highs to summer lows. Light dressed sales were reported from $312-$320/cwt delivered. Cattle that were traded being scheduled for delivery throughout the month of September. Last week, the Alberta fed cash-to-futures basis was reported at +$1.20/cwt, stronger than the five-year average of -$2.43/cwt.

Last week, Alberta auction volumes were slightly over 15,000 head, and have trended counter seasonally for the last two weeks. The Canfax average for steers traded $2/cwt higher than the previous week, while heifers traded $2/cwt lower. For the monthly of July, the Alberta 5-600 pound steer/heifer spread was $6.20/cwt narrower than last month. Meanwhile, the 8-900 pound steer/heifer spread remained steady. Canadian feeder cattle exports to the U.S. for the week ending Aug 9^th totaled 1,630 head, down 39 per cent from last year. YTD feeder exports are up 1 per cent from last year.

The Western Canadian non-fed market had a negative tone last week. Alberta D2 and D3 cows were under pressure traded $1.50/cwt and $1.60/cwt lower respectively. Butcher bulls traded $5/cwt lower than the previous week. Western Canadian cow exports totaled 3,500 head in June and were the second smallest on record for June going back to 2008.

Bull

• Barley prices continued to trend lower
• Alberta cash-to-futures basis last week is stronger than the five-year average
• Dressed sales in Ontario traded steady to $5/cwt stronger

Bear

• Potential rail strike. As on-going labour talk with Canadian National Railway Co. and Canadian Pacific Kansas City Ltd continue.
• Western Canadian non-fed market was under pressure
• Seasonally Western Canadian fed market remains weak