Canfax Weekly Article | Report for the week of January 30, 2023

The Canfax fed steer price closed the week at around $189.75/cwt, fully steady with the previous week. Last week, dressed sales were reported from $315-318.50/cwt FOB the lot. Cattle were being scheduled anywhere from mid-February to early March delivery. All reported cash sales traded locally, and U.S. packer interest was quiet. On a cash-to-cash basis, last week Alberta-fed prices were at an estimated $17/cwt discount against the U.S. market. Alberta-fed cash-to-cash basis levels are the strongest since late September.

The Canfax average feeder steer price was $1/cwt higher, while heifer prices were down $0.50/cwt. Last week steer calves and light weight stockers traded $1-3/cwt higher. Since the beginning of the year, Alberta 550 lb steer prices have traded sideways, averaging on either side of $300/cwt; prices are the highest since September 2015. Last week, steers and heifers weighing from 8-900 lb traded steady to $1.50/cwt lower. Prices are $42-54/cwt higher than last year. Last week, Alberta auction volumes totaled 40,000 head, 3,000 head fewer than the same week last year. Canadian feeder cattle exports to the U. S. for the week ending January 14 totaled 2,110 head.

Alberta D2 cows traded $1/cwt higher last week, and live trade was reported from $92‑108/cwt. D3 cows averaged $87.25/cwt. Butcher cow prices have strengthened for six straight weeks, gaining $17/cwt. Butcher bulls traded $3.75/cwt lower, averaging $123/cwt, and trade was reported from $102-145/cwt. Canadian butcher bull exports to the U.S. for the week ending January 14 totaled 573 head.

Bull

• For the first three weeks of January, Western Canadian-fed slaughter is 9% greater than last year.
• Canadian cattle grading Prime is record high for the month of January.
• From their lows in December, U.S. 90% trim prices have rebounded around USD $10/cwt.

Bear

• Based on the five-year average, Alberta-fed basis levels historically weaken from January to February.
• Canadian beef exports for the month of November were down 7% compared to last year.
• U.S. beef in cold storage for the end of December is 7% greater than last year and remains historically large.