Canfax Weekly Article | Report for the week of February 19, 2024

In Alberta last week, the weighted average fed steer and heifer price was around $219/cwt live, $0.50/cwt higher than the previous week.

Dressed sales were reported from $360.50-368.50/cwt FOB the feedlot. Cattle that traded were being scheduled anywhere from mid-March to mid-April delivery. U.S. packer interest was noted from two U.S. Pacific Northwest slaughter plants.

Light volumes of Western Canadian fed cattle were marketed south. These cattle will be priced off the five-area average.

Last week, the Canfax average feeder steer price was $6/cwt higher, while heifer prices strengthened $9.50/cwt. Week over week, the largest price gains were on light weight heifer calves with prices advancing $13-14/cwt. Last week, the only class of cattle set a record high wasa 550 lb steers.

Alberta auction volumes totaled just over 40,000 head, 22,000 head larger than the same week last year; making up for the smaller volumes earlier int he year. Canadian feeder cattle exports to the U.S. for the week ending February 3rd totaled 2,453 head.

Alberta D2 cows traded $12/cwt higher and live trade was reported from $135-155/cwt. D3 cows averaged $127.50/cwt.

Year-to-date Western Canadian cow slaughter is 14 per cent lower than last year. Last week, butcher bulls traded $2.50/cwt higher, averaging $155.50/cwt, with a trading range from $140-172/cwt. Canadian butcher bull exports to the U.S. for the week ending February 3rd totaled 495 head.

Bull

• Last Friday’s AB-SK cattle on feed report should be viewed as bullish
• Canadian beef exports were strong in December
• Since last December, 2024 live cattle futures contracts have rallied over $20/cwt

Bear

• Alberta fed prices have under performed relative to the Ontario and U.S. markets
• U.S. processing margins are in the red and packers have already started to scale back hours
• For the middle of February, Alberta fed cash to futures basis levels are the weakest in history