Canfax Weekly Article | Report for the week of February 1, 2021

Averaging over $151/cwt, weighted average steer prices last week were the highest since March. Western Canadian fed prices were however $12/cwt below last year and $13.50/cwt lower than the five-year average. Fed prices for the month of January are on track to average around $150/cwt, the lowest January average price since 2014. Dressed sales were reported from $253-255/cwt delivered. Western Canadian fed slaughter for the week ending January 23rd totaled 45,500 head, the last time a 45,000+ head fed slaughter occurred in January was in 2005.

Auction offerings continued larger than a year ago and Alberta feeder prices rebounded higher. Good demand was observed for all types of steers and prices averaged $2.28/cwt higher. Heifers traded unevenly with calves less than 700 lbs steady to softer while larger heifers saw prices rally $1.50-2.50/cwt higher. December placements and January cattle on feed volumes have been reported lower than year ago while December fed marketings surged 16% larger. Empty pens and somewhat softer grain prices are encouraging feedlots to try and place a few more cattle on feed. Weekly auction volumes were 28% lower than the previous week at 24,047 head and were 27% larger than year ago. Canadian feeder exports to the US for the week ending January 16th were light at 472 head.

Non-fed prices were steady to softer last week. Slaughter D2 cow prices eased $1/cwt lower than the previous week while D3’s held fully steady. Dressed cow bids aligned lower to around $145-150/cwt delivered. Butcher bull prices dipped $2/cwt lower than the previous week to average $97.75/cwt. Ontario D2 cows rallied $5.40/cwt higher than the previous week but closed at a $10.20/cwt discount to Alberta. Western Canadian non-fed slaughter for the week ending January 23rd surged 29% larger than the previous week to 9,032 head, and cow slaughter was the largest since mid-March 2020 totaling 8,717 head. 

Bull.

• Good retail beef demand continues
• Short term Canadian fed supplies are tight
• Feeding conditions have been exceptional

Bear.

• Packers could scale back kills moving forward to recoup leverage
• Carcass weights will need to be managed through February
• Risk management opportunities are currently lacking

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.

Those interested in becoming Canfax members can sign up on the website at www.canfax.ca