Canfax Weekly Article | Report for the week of December 11, 2023

Alberta steers averaged $374-$377/cwt FOB last week, $6-7/cwt lower than the previous week’s tone. Live weighted average prices in Alberta were steady to $4/cwt lower than the previous week’s tone, with steers at $225/cwt. Packers appear well positioned with cattle moving through December. Delivery dates are well into the new year.

Steer carcass weights in the west were 22 lb heavier, compared to the week before, to 977 lb. This is the heaviest weight this year, and 39 lb heavier than the five-year average for the same week. Over the last week, the futures market has fallen $5-8/cwt, depending on delivery month.

The Canfax average feeder steer price was $3.50/cwt lower, while heifer prices increased $2/cwt. Last week the largest price jump was on heifer calves with prices advancing $4-9/cwt. Alberta 500 lb steers have been fairly stable over the past seven weeks, averaging in the low-to-mid $380’s/cwt. Alberta calf prices are at a $16/cwt premium against the U.S. market, and may encourage imports of U.S. calves/feeders.

Last week butcher cows traded $5-7/cwt higher through commercial auction facilities, averaging $129/cwt. Rail prices have strengthened as well. Volumes through commercial auction facilities have started to moderate. Western Canadian cow slaughter for the month of November was 7 per cent larger than last year, and was the largest November cow slaughter since 2019. Butcher bulls traded $3/cwt lower, averaging $144/cwt.

Bull

• Light-weight heifers were mostly stronger in the Prairies
• Cull cows prices through commercial auctions and on the rail have strengthened
• Demand for breeding stock has been higher than last year with lighter offerings

Bear

• Western steer carcass weights are the heaviest this year
• Barley production is down from last year, ending stocks are also down
• Trim prices moved lower on ample fed supplies and increased imports