Canfax Weekly Article | Report for the week of February 17, 2025

Alberta fed prices traded softer after strengthening for the past three weeks. Prices averaged in the mid $270’s/cwt, and remained just a couple dollar shy of record high prices. The last time fed prices set an annual high in January was in 2020. From 2021-2024, annual highs have been established in June. Dressed sales were reported at $460.00/cwt delivered, fully steady with the previous week. Cattle traded were scheduled for immediate to mid-March delivery. U.S. interest was noted but no sales were confirmed. Western Canadian steer carcass weights for January averaged 942 pounds, 48 pounds lighter than last year, but remained the second largest on record over the past decade.

Last week, Alberta auction volumes were at 11,135 head, the smallest weekly volumes for the year so far. Canfax average feeder steers closed the week steady, while heifers were down $2/cwt. The market saw lightweight stockers traded higher, while pressure was noted on heavier weight feeders. This is quite normal as calf price tend to move higher, while heavier weight feeder usually drift lower from January to February. Both live and feeder cattle future market has been pressured by the U.S. announcement to resume imports of Mexican feeder cattle. Furthermore, a new strain of bird flu was detected in Nevada dairy cows.

Last week, Alberta D2 and D3 cows traded $5.00/cwt stronger than the previous week, to be the highest since August. Alberta cow prices are trading at a slight discount against the U.S. market. Western cow carcass weights continue to hover near record highs, averaging over 850 pounds. Canadian cow carcass weights are 45 pounds heavier than last year.

Bull

• Fed prices continue to hover near record prices
• Alberta fed cash-to-futures basis is stronger than the five-year average for the first time this year
• AB/SK February 1st cattle on feed inventories are 2 per cent lower than last year, to be the smallest since 2021

Bear

• U.S. tariffs remain a threat to the market
• New strain of bird flu detected in Nevada dairy cows
• The U.S. resumed imports of Mexican feeders