Canfax Weekly Article | Report for the week of January 29, 2024

Sale volumes were too light to establish a weighted average fed price. It was a disappointing week as both Ontario and U.S. fed prices were stronger than the western Canadian fed market.

Dressed bids/sales were reported steady with two weeks ago. Most of the cattle on offer were passed with some cattle being reallocated to meet contract obligations. The cash-to-future basis was estimated to have weakened by at least $10/cwt compared to earlier this month, and when compared to the five-year average for the same week is at least $12/cwt weaker.

Alberta auction volume totaled 29,419 head last week. Year-to-date (YTD) auction volumes are around 40 per cent lower compared to the previous year, and when compared to the same week last year are around 20 per cent lower.

Last week, Alberta 450 pound steers saw an increase of about $20/cwt compared to the previous week, averaging close to $414/cwt. Alberta 850 pound steers saw an increase of $7/cwt from the previous week, averaging around $298/cwt. Canadian feeder export volumes YTD January 13th totaled 3,369 head, up 14 per cent from last year.

Alberta D2 cow prices traded $3/cwt higher than the previous week, while D3 cow prices softened by $5/cwt. Alberta butcher bulls softened $5/cwt last week. Canadian slaughter volumes in the first three weeks of January are down 8 per cent compared to the previous year, with cow slaughter down 14 per cent, while bull slaughter is 25 per cent on small volumes of 646 head.

Bull

• The lightweight 550 pound steer basis reached a historical height for the fourth week of January
• Lean 90 per cent trim has climbed 9 per cent over the last month
• Seasonally cow and bull prices strengthen into the spring

Bear

• Weak fed cash-to-future basis levels and negative feeding margins
• Hog slaughter volume remains historically large
• China has excess pork supplies and there are government interventions to destock numbers