Canfax Weekly Article | Report for the week of July 25, 2022

Last week, Canfax fed steer and heifer price closed around $174/cwt, down slightly from the previous week. For the second half of June this is the second highest price on record. Fed prices have been mostly steady over the past seven weeks, averaging in the mid $170s/cwt. Last week dressed sales were reported from $290-292/cwt FOB the lot. Pick up times were all over the map, largely dependent on who bought the cattle. Cattle week is being booked anywhere from the week of August 1st to August 29th delivery. Alberta fed cash to futures basis did strengthen going from -$2.45/cwt to -$0.28/cwt last week. For the week ending July 16th, Western Canadian fed slaughter totaled just over 43,500 head, 18% lower than the same week last year.

The Canfax average steer and heifer price closed the week $4-6/cwt higher. Steers weighing over 800 lb traded $5-9/cwt higher, while same weight heifers were $2-7/cwt stronger. Alberta 6-700 lb stockers advanced $5-8/cwt and are $18-23/cwt higher than last year. On a cash-to-cash basis Alberta calf and feeder prices are trading at a discount to the US market. Alberta weekly auction volumes totaled just over 8,000 head, 12,500 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending July 9th totaled 1,841 head.

Alberta D2 cows traded $3.50/cwt higher last week, and live trade was reported from $100‑119/cwt. D3 cows averaged $98.50/cwt. Butcher bulls traded $3/cwt lower to average $131.25/cwt and trade was reported from $110-148/cwt. Canadian butcher bull exports to the U.S. for the week ending July 9th totaled 686 head, steady with the same week last year.

Bull.

• Considering big slaughter volumes in the U.S. and hot temperatures, beef cutout have performed much better than expected during July.
• Chinese hog prices have strengthened over the past month, this could bode well for U.S. export demand.
• Alberta cow prices set new annual highs last week.

Bear.

• The USDA July 1st cattle on feed report should be viewed as neutral to slightly bearish as June placements volumes were larger than expected.
• Western Canadian fed slaughter volumes have been lower than last year in four out of the past five weeks.
• Western Canadian feedlot margins remain negative.

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