Canfax Weekly Article | Report for the week of July 2, 2024

Alberta fed cattle traded softer for the third consecutive week. Dressed sales were reported at the lower end of last week’s trading range. Cattle are scheduled for pick up in three weeks. For the week ending June 15th, Canadian fed cattle exports to the U.S. were 7,638 head, were up 7 per cent from last year. Weekly exports have been running above last year’s for the past five weeks. Furthermore, weekly exports out of the East have been larger than the West for the last four weeks; as the East ships cattle South and West for processing.

Last week, Alberta feeder steer traded steady to $8/cwt stronger than last week. While heifers traded steady to $5/cwt lower. Auction volumes were below 10,000 head, following seasonal patterns. In the first half of 2024, the Alberta 550 steer/heifer price spread has ranged between $40 70/cwt and is currently sitting at $60/cwt. The 850 steer/heifer spread has ranged widely between $16-41/cwt and is currently at the lower end at $16/cwt. For the week ending June 15th, feeder cattle exports to the US were 2,932 head, running 31 per cent above last year.

Alberta D2 and D3 cow traded $4-9/cwt lower from last week at $184 and $172/cwt respectively. It appears July holiday buying is complete. The five-year average shows that from June to August cows mostly trade steady with prices dipping 1-2 per cent over the summer months. For the week ending June 15th, Canadian butcher bull exports to the U.S. were 524 head, down almost 50 per cent from last year.

Bull

• The unions and Cargill are having a meeting this week to discuss the ongoing strike
• U.S. planted corn acres came in 1.4 million acres higher than the March prospective plantings report and even exceeded pre-report estimates, pressuring corn prices lower
• Choice cutouts put in new annual high just above $323.00/cwt this week

Bear

• As we approach the dog days of the summer months, fed prices trend steady to softer as demand wanes and market ready supplies seasonally climb in the third quarter
• Annual inflation in May was 2.9 per cent
• Canadian planted barley acres are down 13 per cent