Canfax Weekly Article | Report for the week of December 9, 2024

In Alberta, fed cattle trade last week averaged around $247/cwt, $1/cwt softer than the previous week. From their lows in late October, fed prices have rallied 3 per cent. Dressed sales were mostly at $415/cwt delivered. Cattle that traded were scheduled for the second half of December delivery. No negotiated cash sales to the U.S. were confirmed and is partly why weighted average fed prices were $1/cwt lower. Over the past two months, the Alberta fed cash-to-futures basis has averaged -$16/cwt. For week ending November 23rd, Canadian fed cattle and cow exports to the U.S. were 14,771 head, 35 per cent higher than last year and the largest weekly exports for the year.

Last week, Alberta auction volumes were slightly over 40,000 head, 30 per cent higher than last year. This is the sixth consecutive week of larger volumes than last year. The feeder market remains on fire, with calf prices setting new record highs once again. Average feeder steers and heifers were $5/cwt and $7/cwt higher respectively. For the week ending November 23rd, Canadian feeder cattle exports to the US at 2,084 head, down 31 per cent from last year. For Western Canada, this is the smallest weekly feeder exports in the last 12 weeks. YTD feeder exports at 141,619 head, are down 14 per cent from last year.

Alberta D2 and D3 cows traded $3-7/cwt higher than last week. Butcher bulls were fully steady with a stronger tone while feeder cows closed the week slightly easier than last week. After a larger week, Western Canadian non-fed slaughter was down to 6,941 head for week ending November 30th, to be the smallest weekly volume since 2004.

Bull

• Feeder market remains on fire with calves putting in new annual highs
• December historically is a strong month for fed cattle
• Dressed sales in Ontario are trading at $420/cwt delivered, $5-9/cwt stronger than the previous week

Bear

• For the week ending November 23rd, Canadian feeder cattle exports to the U.S. were down 31 per cent from last year
• Unemployment rate for Canada is at 6.8 per cent, slightly higher than October
• Over the past two months, the Alberta fed cash-to-futures basis has averaged -$16/cwt