Canfax Weekly Article | Report for the week of July 22, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $256.50/cwt live, $1.75/cwt higher than the previous week. Last week, buying interest was noted from all three Western Canadian packers and dressed sales were reported from $425.00-426.50/cwt FOB the feedlot. Most of the cattle that traded were scheduled for the week of August 12th and 19th delivery. U.S. packer interest was noted but no cash sales were confirmed. On a cash basis, Alberta fed prices were at an $11/cwt discount against the Nebraska market.

Last week, the Canfax average feeder steer price was $3/cwt higher, while heifer prices strengthened $6.50/cwt. Week over week, the largest price increase was on 6-800 pound heifers with prices advancing $8-14/cwt. Heavier weight feeders over 900 pounds traded $6/cwt stronger, establishing new annual highs. Over the past month, AB 5-600 pound steer price has been relatively flat trading in the mid to upper $430’s/cwt. Both steer and heifer calf prices are $70/cwt higher than last year. On a light offering of cattle, Alberta auction volumes totaled 11,000 head, 11,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending July 6th totaled 1,561 head.

Alberta D2 cows traded $5/cwt higher and live trade was reported from $175-202/cwt. D3 cows averaged $173/cwt. Cow prices are $33/cwt higher than a year ago. Butcher bulls traded fully steady averaging $211.25/cwt, with a trading range from $186-230/cwt. Canadian butcher bull exports to the U.S. for the week ending July 6th totaled 527 head.

Bull

• USDA July 1st cattle on feed report should be viewed as neutral to slightly bullish, as June feedlot placements were below pre-report estimates
• YTD (January to May) Canadian beef exports are up six per cent compared to last year
• The All-fresh beef retail price for the month of June was record high

Bear

• Forward beef sales for 22-90-day delivery have been disappointing with some of the smallest volumes seen this year
• Just recently, the December lean hog contract established new contract lows
• According to USDA pork and poultry production is expected to larger in 2025 compared to 2024