Canfax Weekly Article | Report for the week of February 12, 2024

The western Canadian fed market had another disappointing week, and continues to underperform relative to the U.S. and Ontario markets.

Dressed sales are reported slightly higher compared to last week. Small volumes of western Canadian fed cattle were marketed into the U.S. The Alberta fed cash-to-futures basis is the weakest for early February in over 38 years.

Ontario has continued with another strong week, with dressed sales being higher than the previous weeks. Light volumes of Ontario fed cattle are also marketed into the U.S.

Alberta Auction volumes totaled at 20,553 head last week. Alberta 550 pound steers were up $8/cwt compared to the week before, surpassing the September 2023 high. Similarly, Alberta 850 pound steers were up $6/cwt compared to the previous week.

Ontario lightweight steers had another strong rally since the start of the year. Ontario 550 pound steers were up $27/cwt compared to last week, with an impressive rally since the beginning of the year. Heavyweight 850 pound steers were up $10/cwt compared to last week.

Alberta D2 cows were up a slight $2/cwt when compared to the previous week. But the bigger surge this week comes from Alberta D3 cows, with prices $9/cwt higher than last week. Canadian slaughter volumes for the week ending February 3rd were down 11 per cent compared to the prior week, but cow slaughter and bull slaughter were both higher compared to the prior week.

Bull

• Cow and bull prices should continue to a spring rally
• Lightweight 550 lb steers basis has reached a new historical high
• Ontario fed and feeder are strong and shaping up to continue in the coming weeks

Bear

• Alberta fed cash-to-futures basis has weakened significantly
• Carcass weights remain near record large in the west
• U.S. beef exports in 2023 were down 14.6 per cent on reduced production and softer Asian demand