Canfax Weekly Article | Report for the week of June 17, 2024

Last week, Alberta fed steer and heifer both traded softer compared to the previous week, averaging $264 /cwt and $263/cwt, respectively. There was moderate competition among packer with one packer not buying. Dressed sales were reported at $433-440/cwt delivered.

Cattle that are traded are scheduled for delivery in the first half of July. The Alberta cash-to-futures basis weakened $4.38/cwt compared to last week at +$11.19/cwt. This is the second strongest basis for the same week in the past five years. For the week ending June 8th, Canadian fed slaughter total 42,548 head, up 2 per cent from the previous week.

Last week, Alberta auction totaled over 13,000 head. Prices continued to remain steady to higher across most classes of cattle. Notably, 700-925 pound feeders saw the largest price increase in recent weeks.

While heavier feeder over 950 pounds have not quite seen the price jump but demand for them is slowly rising. On the cow/calf pair market, middle aged cows with good calves at their side seemed to be bit of a tougher sell.

YTD non-fed beef production is currently below last year’s levels. However, heavier carcass weights have offset some of the production shortfall.

YTD Canadian non-fed slaughter is 8.5 per cent lower than last year while YTD non-fed beef production is only down 4 per cent. Last week, Alberta D2 and D3 cows both continued to trade stronger at $195/cwt and $177/cwt respectively, trading $1-2/cwt stronger than a week ago. Butcher bulls reach new record high at $210.16/cwt, $5/cwt stronger than a week ago.

Bull

• The Canada Border Services Agency strike has been averted after reaching a tentative agreement
• The second strongest Alberta cash-to-future basis for the same week int he past five years
• June 1st AB/SK cattle on feed inventories were down 3 per cent from last year

Bear

• Eastern Canadian fed cattle coming into Alberta for slaughter
• Cargill strike shows no signs of resolutions
• Second largest Canadian steer carcass weight for the same week in past five years