Canfax Weekly Article | Report for the week of July 16, 2024

In Alberta last week, weighted averaged fed prices held steady with the previous week at $255/cwt live. Following seasonal trends, trading steady to weaker as summer heat sets in. When taking a step back and look at where we started, fed prices have rallied by about $37/cwt since the start of the year. Making it the second largest rally in the past decade. Last week, dressed sales reported at $428.00‑429.00/cwt delivered, fully steady with last week. All three Western Canadian packers participated, and one US packer.

Last week, Alberta auction volumes totaled slightly below 7,500 head, following seasonal patterns. Canfax average for steer and heifer traded $3.60/cwt and $2.00/cwt stronger respectively. Steer 6‑700 pounds and heifer 7-900 pounds both established new annual highs. In the first half of this year, Canadian feeder cattle exports reached 85,765 head, up 6,500 head from last year but 46,000 head fewer then 2022.

Alberta D2 and D3 cows traded softer at $183 and $169/cwt respectively, down about $2/cwt from last week. Since early June, Alberta cow prices have dropped just over $10.00/cwt. When compared to the US market, Alberta cow prices are trading at $9/cwt discount against the U.S. utility cow market. While Butcher bulls continue to be the bright spot and established record high last week at $211.56/cwt, up $3/cwt from the previous week. For the short holiday week ending July 6^th, Western Canadian cow slaughter totaled just over 4,100 head, for the beginning of July, this is the fewest cow slaughter since 2005.

Bull

• Cargill Guelph has resumed operations
• Butcher bulls established new record high
• Barley prices have dropped roughly $30/tonne over the past 5-6 weeks

Bear

• For July fed market historically trade steady to weaker as summer heat sets in
• Since early June, Alberta cow prices have dropped just over $10.00/cwt
• Cutouts appears to have peaked and are positioned to seasonally soften