Canfax Weekly Article | Report for the week of July 8, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $255/cwt live, $2/cwt lower than the previous week. Last week, buying interest was noted from all three Western Canadian packers and dressed sales were reported from $425.75-427.50/cwt FOB the feedlot. Most of the cattle that traded were scheduled anywhere from late July to the first half of August delivery. Last week, light volumes of Western Canadian fed cattle were marketed into the U.S. These cattle were committed to the U.S. packer and will be priced off the U.S. five-area average. YTD Western Canadian fed slaughter is steady with last year while Canadian fed cattle exports to the U.S. are running well above last year.

Last week, the Canfax average feeder steer price was $1.50/cwt lower, while heifer prices strengthened $3.50/cwt. Heavier weight feeders over 900 pounds traded $3-6/cwt stronger, establishing new annual highs. AB 900 pound + feeders are trading $50/cwt higher than last year. Last week, AB 1,000 pound heifers for September delivery traded in the low $320/cwt. Forward delivery prices are at a 10 per cent premium compared to the spot market. For the holiday short week, Alberta auction volumes totaled 6,000 head. Canadian feeder cattle exports to the U.S. for the week ending June 22nd totaled 3,068 head.

Alberta D2 cows traded $1.25/cwt higher and live trade was reported from $172-202/cwt. D3 cows averaged $171.50/cwt. Packers have cut back cow slaughter hours to match tighter supplies. Butcher bulls traded $1.25/cwt lower, averaging $209/cwt, with a trading range from $186-230/cwt. Canadian butcher bull exports to the U.S. for the week ending June 22nd totaled 884 head, the largest export volume seen this year.

Bull

• Choice and select cutout values established new annual highs last week
• Since mid-June, U.S. 50 per cent trim prices have rallied nearly 30 per cent
• For the middle of June, U.S. beef cow slaughter is the smallest since 2014

Bear

• U.S. beef exports continue to run below last year
• Canadian Prime/AAA grading percentage is the lowest it has been this year
• Based on the five-year average Alberta fed basis levels historically weaken from June to July