Canfax Weekly Article | Report for the week of January 15, 2024

Alberta fed prices closed last week at $218.75/cwt, $0.50/cwt lower compared to the second half of December. Over the past couple of years, January has not necessarily been the friendliest month for the cattle feeder.

Last week, buying interest was noted from all three Western Canadian packers, however, competition on the cash market was limited with one packer buying most of the cattle. Dressed sales and bids were reported from $360-368/cwt delivered. Western Canadian steer carcass weights are record large to start the New Year off. Last week’s Alberta fed cash-to-futures basis was reported at -$10/cwt compared to the five-year average of -$8/cwt.

The Alberta auction volume totaled 18,664 head last week. Alberta 550 pound steers averaged near $380/cwt last week, up $2/cwt compared to mid-December, and up 26 per from last year. Alberta 850 pound steers averaged $296/cwt last week, up $1/cwt from mid-December, and up a solid 22 per cent from last year.

Heavy weight 900 plus pound steers averaged $284/cwt last week, up $9/cwt from mid-December, and up 21 per cent from last year. Canadian feeder cattle export volumes for the week ending December 30th totaled 675 head, making it one of the lowest for the year, and down 24 per cent compared to the year prior. Feeder cattle export volumes totaled 175,910 head in 2023, down 11 per cent from 2022.

In Alberta, non-fed prices have softened compared to December, with D2 cows averaging $122/cwt last week, down $7/cwt from mid-December. Alberta D3 cows traded at $107/cwt, also down $7/cwt from mid-December. Butcher bulls averaged $142/cwt last week. Western Canada slaughter volumes for week ending January 6th, 2024, totaled 48,426 head, down 1 per cent from last year.

Bull

• The Alberta cash basis averaged -$6/cwt in December, the second strongest for 2023
• Cutout values were supported last week by severe weather and reduce slaughter
• Grass interest supported Alberta 550 steer prices to begin 2024

Bear

• The latest Cattle on Feed report is negative in the near-term
• January tends to not be a favourable month for feedlots
• Non-fed cattle remain under pressure to begin 2024