Canfax Weekly Article | Report for the week of June 24, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $260.50/cwt live, $2.50/cwt lower than the previous week. Fed cattle prices are $14/cwt higher than a year ago. Last week, a softer price tone was noted as the week progressed. Buying interest was noted from all three Western Canadian packers and dressed sales were reported from $426.50-433.50/cwt FOB the feedlot. Most of the cattle that traded were being secluded for late July delivery. There has been quite the basis shift over the past month Alberta fed prices have gone from a $3/cwt premium against the Nebraska market to now a roughly $10/cwt discount.

Last week, the Canfax average feeder steer price was $0.50/cwt lower, while heifer prices strengthened $3.50/cwt. Western Canadian barley prices have dropped around $10-15/tonne over the past couple of weeks and this has supported the feeder market. Week over week, the largest price jump was on 6-800 lb heifers with prices advancing $7/cwt. Alberta auction volumes totaled just over 13,000 head, 4,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending June 8th totaled 4,181 head.

Alberta D2 cows traded $2.25/cwt lower and live trade was reported from $180-208/cwt. D3 cows averaged $175.50/cwt. YTD western Canadian cow slaughter volumes are 7 per cent lower than last year. Butcher bulls traded $1.50/cwt higher, averaging $209.25/cwt, with a trading range from $180-243/cwt. Canadian butcher bull exports to the US for the week ending June 8th totaled 541 head.

Bull

• U.S. fed cattle prices posted new record highs last week.
• Canadian beef exports for April were larger than last year.
• The All-fresh beef retail price for the month of May was record high.

Bear

• USDA’s June 1st Cattle on Feed report should be viewed as negative.
• Seasonally Western Canadian fed cattle prices historically trend lower during the summer months.
• Cargill workers in Eastern Canada have been on strike for four weeks now and cattle are backing up and carcass weights are record large.