Canfax Weekly Article | Report for the week of February 8, 2021

The Canfax fed steer and heifer price closed last week around $150.75/cwt, fully steady with the previous week. Fed prices are $6-7/cwt lower than last year. Last week dressed sales were reported from $252.25-253.50/cwt FOB the lot. Cattle that traded last week were being scheduled for the week of February 15^th and 22^nd delivery.  Last week on a cash to cash basis Alberta fed prices were estimated at a $5/cwt premium against the Nebraska market. Western Canadian fed slaughter for the week ending January 30^th totaled just over 37,000 head. 

Last week the Canfax average feeder steer price closed the week $4.50/cwt higher while heifers strengthened $2.50/cwt.  Steer and heifer calves traded $3-7/cwt stronger. Feeder steers weighing over 800 lbs were reported $2-3/cwt higher while same weight heifers saw prices advance $1-2/cwt. Setting new annual highs this week, the Western Canadian calf and feeder indices closed the week at $214.00/cwt and $186.51/cwt respectively. Alberta weekly auction volumes totaled just over 19,000 head. Canadian feeder cattle exports to the US for the week ending January 23^rd totaled 1,681 head. 

Alberta D2 cow prices traded $1/cwt higher with live trade reported from $68-83/cwt. Last week D3 cows averaged $65.50/cwt. Butcher bulls traded $2/cwt higher to average $99.75/cwt and live trade was reported from $86-114/cwt. Canadian butcher bull exports to the US for the week ending January 23^rd totaled 651 head.

Bull

• Total US beef exports for the month of December were 12% larger than last year
• Since the beginning of the year, non-fed volumes through commercial auction facilities have been very manageable and smaller than expected
• January 1^st US beef cow inventory was down 181,000 head compared to last year 

 Bear

• Statistically there is a low probability that fed prices strengthen from January to February
• Western Canadian packers have started to scale back slaughter rates 
• US steer carcass weights are within 5 lbs of their record high

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