Canfax Weekly Article | Report for the week of August 29, 2022

The Canfax fed steer and heifer price closed around $179/cwt $0.50/cwt higher than the previous week. Last week, dressed sales were reported from $298.50-300.50/cwt FOB the lot.  Lift times were all over the map depending on who bought the cattle. Two packers were buying for September delivery while the other packer was buying cattle for early October delivery. Last week on a cash-to-cash basis Alberta fed prices were estimated at an $8.50/cwt discount against the Nebraska market. Western Canadian fed slaughter for the week ending August 20^th totaled over 48,000 head, 2% lower than the same week last year.

The Canfax average feeder steer and heifer price closed the week $4-6/cwt higher.  Last week steers and heifers weighing over 700 lb traded $6-11/cwt stronger. Heavier weight feeders are trading at the highest point since 2015. Last week Alberta 5-600 lb steer calves traded $3/cwt higher and are $35/cwt higher than last year. Last week Alberta weekly auction volumes totaled 22,000 head — 13,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending August 13^th totaled 2,615 head. YTD feeder cattle exports to the U.S. are 135% larger than last year.

Alberta D2 cows traded $2.25/cwt higher last week, and live trade was reported from $110‑124/cwt. D3 cows averaged $100/cwt. Butcher bulls were steady averaging $131.25/cwt and trade was reported from $120-149/cwt. Canadian butcher bull exports to the U.S. for the week ending August 13^th totaled 1,011 head, YTD bull exports to the U.S. are 6% larger than last year while YTD Canadian bull slaughter volumes are down 21% compared to last year.

Bull.

• Last week, Weekly U.S. cattle slaughter was estimated at 678,000 head, the largest slaughter seen this year.
• Statistics Canada July 1^st hog inventory report reported total inventories down 3% from 2021.
• According to USDA U.S. packers have fewer September contract cattle compared to last year.

Bear.

• U.S. beef and pork in cold storage for the end of July is 27% and 20% larger respectively versus last year.
• Since the beginning of the month U.S. pork cutout values have trended lower.
• In 12 out of the past 15 years western Canadian fed prices have declined from August to 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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