Canfax Weekly Article | Report for the week of June 12, 2023

The Canfax fed steer price closed the week at around $245.50/cwt, $3.75/cwt higher than the previous week. Over the past six weeks, fed prices have rallied $20/cwt. Last week, dressed sales were reported $406.50-410.50/cwt FOB the feedlot. Cattle that traded were being scheduled anywhere from immediate delivery to the first half of July delivery. Feedlot margins are positive, and cattle are being marketed ahead of schedule. Western Canadian steer carcass weights continue to seasonally decline. Carcass weights are the smallest they have been since June 2019. YTD Western Canadian fed beef production is 6% lower than last year.

All classes of calves/feeders traded steady to higher last week, and new annual highs were established. The Canfax average feeder steer price was $3.50/cwt higher, while heifer prices strengthened $7/cwt. Week over week, the largest price increase was on heifers over 700 lb, with prices $9-10/cwt higher. Over the past month, steers weighing from 7-800 lb have rallied $14/cwt. The Western Canadian calf index closed the week at $345.95/cwt. Alberta auction volumes totaled just more than 23,000 head, 4,000 head more than this week last year. Canadian feeder cattle exports to the U.S. for the week ending May 27 totaled 2,298 head.

Alberta D2 cows traded $2/cwt lower than the previous week, and live trade was reported from $145‑167/cwt. D3 cows averaged $138.50/cwt. Butcher bulls traded $2.75/cwt higher, averaging $164.25/cwt, with a trading range from $148-186/cwt. Canadian butcher bull exports to the U.S. for the week ending May 27 totaled 391 head, 34% lower than the same week last year. Over the past couple of weeks, Alberta cow prices have been at a $12-14/cwt premium against the U.S. utility cow market.

Bull:

• All 2023 live cattle contracts set new highs last week.
• From Friday to Friday, Choice and Select beef cutout values advanced U.S. $15-23/cwt, setting new annual highs.
• Even with lower carcass weights, quality grade percentage (Prime/AAA) remains near record high for this time of the year.

Bear:

• Based off the five-year average, Alberta fed cash-to-futures basis levels historically weaken from May to June.
• U.S. beef exports for the month of April were 12% lower than last year.
• Dry conditions are being noted across much of the prairies, and there has been a sharp increase in non-fed volumes through commercial auction facilities.