Canfax Weekly Article | Report for the week of February 5, 2024

In Alberta last week, the weighted average fed steer price was $217.50/cwt live. Dressed sales were reported from $360-$365/cwt delivered.

Dressed sales were not only steady with the previous week but prices have been steady for the past month. Cattle that traded were being scheduled anywhere from the second half of February to the second half of March 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.

Stronger live cattle futures contracts and lower barley prices continues to support all classes of cattle. Last week, the Canfax average feeder steer price was $9.50/cwt higher, while heifer prices strengthened $11.255/cwt.

Grass buyers have been active on the market supporting the lightweight stocker market. Last week, 4-600 pound steer and heifers advanced $12-19/cwt. Alberta auction volumes totaled just over 28,000 head, 11,000 head smaller than the same week last year.

Canadian feeder cattle exports to the U.S. for the week ending January 20th totaled 2,117 head.

Alberta D2 cows traded $2.75/cwt higher and live trade was reported from $120-145/cwt. D3 cows averaged $110/cwt.

Last week, butcher bulls traded $3.25/cwt higher, averaging $152.50/cwt, with a trading range from $135-175/cwt. Canadian butcher bull exports to the U.S. for the week ending January 20th totaled 180 head. Butcher bull exports have been historically light for January.

Bull

• Western Canadian fed slaughter for the week ending January 27th was the largest since June 2022
• Since early December live cattle contracts have rallied USD $16-17/cwt
• USDA January 1st cattle inventory report should be viewed as bullish, year-over-year total cattle inventories were down two per cent

Bear

• Based on the five-year average Alberta fed basis levels historically weaken from January to February
• Retail beef featuring tends to slow leading up to Superbowl, retailers historically feature more chicken (chicken wings)
• Alberta fed prices have struggled over the past few weeks, while Ontario and U.S. fed prices have strengthened