Canfax Weekly Article | Report for the week of January 10, 2022

Last week the Canfax fed steer and heifer prices closed around $161.25/cwt, $4/cwt lower than the previous week. Packers seem to have a lot of January contract cattle around them which moderated interest on the cash market.  Last week dressed sales were reported from $268.00-275.75/cwt FOB lot. Cattle that traded were being scheduled for late January delivery. Last week on a cash-to-cash basis, Alberta fed prices were at an estimated $14.25/cwt discount against the Nebraska market. Alberta fed prices are also at a $11/cwt discount compared to the Ontario market.

With only 6,000 head of feeders and non-fed cattle trading through commercial auction facilities in Alberta last week, it is tough to draw a lot of comparisons. The two main takeaways are: 1) compared to the end of December, the market tone on the calf and light weight stockers seemed a little stronger on the steers and steady on the heifers, and 2) demand for heavy weight feeders seemed exceptionally strong. Canadian feeder cattle exports to the U.S. for the week ending December 25^th totaled 1,438 head.

Compared to the end of December, Alberta D2 cows traded $1.75/cwt lower last week and live trade was reported from $67-84/cwt. D3 cows averaged $65.25/cwt. Compared to the end of December butcher bulls traded $3/cwt higher to average $99.25/cwt and live trade was reported from $85-113/cwt. Canadian butcher bull exports to the US for the week ending December 25^th totaled 255 head.

Bull.

• U.S. beef exports for the month of November were 8% larger than last year.
• 2022 U.S. beef production is forecast to be down around 2% compared to last year.
• USDA’s December 1^st hog report indicated all hogs and pigs were 4% lower than last year. 

Bear.

• COVID cases are on the rise, impacting North American slaughter production.
• Packer competition on last week’s western Canadian non-fed and fed market was limited.
• For the second half of December, U.S. steer carcass weights are record large.

For over 50 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.

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