Canfax Weekly Article | Report for the week of February 7, 2022

Last week the Canfax fed heifer price closed around $158.25/cwt, $2/cwt lower than the previous week. Both major packers were not bidding on fed cattle last week, reported cash sales went to a couple smaller plants in Alberta. Last week dressed sales were reported from $258.50-268.50/cwt FOB lot. Cattle that traded last week were being scheduled for the week of March 14 delivery.

The Canfax average feeder steer price closed the week $1.25/cwt lower while heifer prices eased $3/cwt. The tough spot on the market seems to be light weight calves, the only class of cattle trading lower than the five-year price average is 450 lb steers and heifers. Since the beginning of the year, 900+lb steer and heifer prices have dropped $8-11/cwt. Western Canadian calf and feeder indices closed the week at $216.78/cwt and $194.35/cwt respectively. Alberta weekly auction volumes totaled just over 27,000 head last week. Canadian feeder cattle exports to the U.S. for the week ending January 22 totaled 4,790 head. For the second half of January this is the largest export volume since 2015.

Alberta D2 cows traded $1.50/cwt lower last week and live trade was reported from $70-85/cwt. D3 cows averaged $67.50/cwt. Butcher bulls traded $1/cwt higher to average $102.75/cwt and live trade was reported from $88-121/cwt. Canadian butcher bull exports to the U.S. for the week ending January 22 totaled 450 head.

Bull.

• The U.S. cattle inventory report should be viewed as bullish.
• February to December 2022 live cattle contracts set new highs.
• U.S. pork cutout values are 17% higher than last year.

Bear

• According to the Canadian Meat Council, earlier last week there were 150 trucks sitting, full of beef, unable to cross the border due to the blockades.
• There have been reports packers may have to scale back hours.
• Western Canadian cow slaughter volumes have been fairly large.

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