Canfax Weekly Article | Report for the week of December 12, 2022

Setting new annual price highs, the Canfax fed steer price closed the week around $185.50/cwt, $2/cwt higher than the previous week. Last week, dressed sales were reported at $303.50/cwt FOB the lot. Cattle were being scheduled for mid to late January delivery. Light volumes of Alberta-fed cattle traded to the U.S. Depending on freight and dressing percentage, U.S. sales were working back to the upper $180s/cwt FOB the lot. Sales to the U.S. were at a premium over local deals. Alberta-fed prices are trading at a discount against both the Nebraska and Ontario markets.

The Canfax average feeder steer price was $1.50/cwt higher, while heifer prices strengthened $2.25/cwt. Last week Alberta 5-600 lb steers traded $5/cwt higher, and prices are at the highest point since late September. Heavier weight feeder prices are hovering near fourth quarter lows. On average steer prices are $57/cwt higher than last year, while heifer prices are $42/cwt higher than a year ago. Western Canadian calf and feeder indices closed the week at $263.89/cwt and $239.80/cwt respectively. Last week, Alberta auction volumes totaled 28,000 head, 8,000 head fewer than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending November 26th totaled 2,956 head.

Alberta D2 cows traded $1/cwt lower last week, and live trade was reported from $75‑92/cwt. D3 cows averaged $70.25/cwt. Butcher cow prices have traded lower in seven out of the past eight weeks. Butcher bulls traded $2.75/cwt lower, averaging $116/cwt, and trade was reported from $100-132/cwt. Canadian butcher bull exports to the U.S. for the week ending November 26th totaled 1,062 head, 157% more than the same week last year. 

Bull

• Based on the five-year average, Alberta-fed basis levels historically strengthen from November to December.
• U.S. beef exports for the month of October were 10% higher than last year.
• From their highs in late October, Western Canadian steer carcass weights have declined 20 lb.

Bear

• U.S. pork cutout values are trading at the lowest point since early January.
• U.S. 90% trim prices are hovering near annual lows.
• Rib primal values historically decline throughout the month of December.

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