Canfax Weekly Article | Report for the week of July 3, 2023

The Canfax fed steer price closed last week at around $244.75/cwt, $3/cwt lower than the previous week. Fed prices dipped lower after eight straight weeks of stronger prices. The bulk of trade occurred from $407-410/cwt delivered. Kill schedules remain from immediate to five weeks out. Fed cattle/cow exports to the U.S. for the week of June 17 were 11% larger than the previous week and were down 17% from the same week last year. YTD fed cattle/cow exports were 5% lower than year ago.

The Canfax average feeder steer price was $1/cwt lower, while heifer prices eased $1.50/cwt. Mid-weight steers in Alberta were steady to $1/cwt higher than last week; 900+ lb steers saw significant softening this week, down $7/cwt. The Alberta 550 lb steer/heifer price spread has narrowed $13/cwt since the end of May to $33/cwt last week. The Alberta 850 lb steer/heifer spread has been stickier, narrowing only $3/cwt since the end of May to $27/cwt last week. Auction volumes lightened last week across all three Prairie Provinces, largely following seasonal patterns. Western auction volumes tend to be lowest during Calgary Stampede.

Alberta D2 cows managed a small pivot last week, after four weeks of softening. D2 cow prices rallied $1/cwt from the previous week to close at $153/cwt. Alberta D3 cows eased $1.50/cwt lower to $135.50/cwt. Railgrade cows ranged from $298-305/cwt, $3-5/cwt higher. Butcher bulls closed at $162/cwt, steady with last week.

Bull:

• Canadian employment rate is supportive to beef demand.
• September corn shaved off another 80+ cents per bushel in the last week.
• August feeder cattle shot up $12/cwt over the last week to close above $242/cwt last week.

Bear:

• Alberta fed steer and heifer prices are beginning to see price resistance.
• Average June feeder steer basis levels widened compared to May.
• Tame hay acres declined 3.5% in Alberta; dry weather and lower yields will negatively impact margins.