Canfax Weekly Article | Report for the week of December 18, 2023

The Canfax fed steer price closed the week around $221/cwt, $4/cwt lower than the previous week. All three Western Canadian packers bought cattle but competition on the cash market was somewhat disappointing. In some instances, packers were limiting the amount of cattle they were buying from each producer.

Last week, dressed sales were reported from $366.50-$368.50/cwt FOB the lot. Cattle that traded were being scheduled anywhere from early January to late February delivery, depending on which packer bought the cattle. With big cattle coming down, the line producers were looking for flat bids with no heavy weight carcass discounts. Alberta fed cash-to-futures basis was reported at -$4.50/cwt, in line with the ten-year average.

The Canfax average feeder steer price was $1.50/cwt lower, with heifer prices eased $3.50/cwt. All class of cattle traded lower except 900+ lb steers. Over the past month, the largest price decline has been noted on light-weight calves from 3-400 lb, with prices dropping $8-9/cwt.

Last week, Alberta 5-600 lb steer and heifer calves traded $5-6/cwt lower. Alberta 8-900 feeders were reported $2-4/cwt lower and are at the lowest point since July. Alberta auction volumes totaled just over 23,000 head, 13,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending December 2, 2023, totaled 4,188 head, which is 25 per cent larger than the same week last year.

Alberta D2 cows traded fully steady and live trade was reported from $118-$143/cwt. D3 cows averaged $111.50/cwt. Last week, butcher bulls traded $2.75/cwt higher, averaging $146.50/cwt, with a trading range from $126-164/cwt. Butcher bull prices are $29/cwt higher than last year. Canadian butcher bull exports to the U.S. for the week ending December 2, 2023, totaled 677 head.

Bull

• Alberta-Saskatchewan Cattle on Feed report should be viewed as friendly, this is the second consecutive month of lower feedlot placements
• Holiday buying has supported middle primals, Choice rib primal values are 32 per cent higher than last year, and Choice loin values are 16 per cent higher
• Non-fed number through commercial auction facilities have started to tighten and packer could start adding more hours to the A grade slaughter

Bear

• U.S. beef exports for the month of October were 20.5 per cent below last year
• The Choice beef to pork cutout ratio remains historically wide
• Western Canadian steer carcass weights are record large and feedlots have lots currentness