Canfax Weekly Article | Report for the week of August 26, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $247/cwt live, $5/cwt lower than the previous week. Prices are at the lowest point since early April. Active trade was reported last week with buying interest was noted from all three Western Canadian packers. Dressed sales were reported from $412.00-416.50/cwt FOB the feedlot. Cattle that traded were being booked anywhere from the second half of September to early October delivery. The Alberta fed cash-to-futures basis did strengthen from +$1.20/cwt to +$2.60/cwt last week.

Last week, the Canfax average feeder steer price was $11/cwt lower, while heifer prices eased $7/cwt. Since early August, feeders over 900 pounds have declined $10-13/cwt. Last week, heifers weighing from 6-800 pounds traded $11-13/cwt lower. The forward delivery market was lightly tested last week with 6-699 pound steers for October/November delivery trading from $362-399/cwt with a weighted average price of $380/cwt. Forward delivery prices are $15/cwt higher than a year ago. Alberta auction volumes were just over 35,000 head, 7,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending August 10th were 1,181 head.

Alberta D2 cows traded $2.50/cwt lower and live trade was reported from $188-206/cwt. D3 cows averaged $179/cwt. From their highs in early August, cow prices have declined $4/cwt. Butcher bulls traded $1.50/cwt lower, averaging $211/cwt, with a trading range from $196-236/cwt. Canadian butcher bull exports to the U.S. for the week ending August 10th were 655 head.

Bull

• Beef retail featuring should improve leading up to the Labor Day holiday
• For the middle August Western Canadian cow slaughter is the smallest since 2014
• For the first half of this year Canadian beef exports are up 4 per cent in volume compared to last year

Bear

• The Canadian rail strike is negative news for the Canadian economy and agriculture industry
• U.S. August 1st cattle on feed inventories at 11.1 million head, is the fifth largest August 1st inventory since reporting started
• Dec 24/Feb 25 Live Cattle contracts are trading at the lowest point since early December