Canfax Weekly Article | Report for the week of June 27, 2022

Last week, Canfax fed steer and heifer price closed around $175.25/cwt, $0.75/cwt higher than the previous week. Fed cattle prices are at the highest point since the spring of 2017. Last week dressed sales were reported from $289.50-292.50/cwt FOB the lot. Most of the cattle that traded last week were being scheduled for late July/early August delivery. U.S. packer interest was noted on the Western Canadian cash market. Light volumes of Alberta cattle traded south and sales to the U.S. were at a slight premium over local deals. Western Canadian fed slaughter for the week ending June 18^th totaled just over 42,000 head, 8% lower than last year.

Canfax average feeder steer and heifer prices closed the week $1.50-3.50/cwt higher. Heifers weighing from 7-900 lb traded $3/cwt stronger. Over the past four weeks, 850 lb steers have strengthened $8/cwt, while same weight heifer prices have traded generally sideways. Alberta 550 lb steer prices have averaged in the low to mid $230’s/cwt for the past eleven weeks. The Western Canadian calf index closed the week at $237.71/cwt. Alberta weekly auction volumes totaled just over 12,000 head, 3,000 head smaller than last year. Canadian feeder cattle exports to the US for the week ending June 11^th totaled 3,909 head.

Alberta D2 cows traded $1/cwt higher last week, and live trade was reported from $96‑115/cwt. D3 cows averaged $92/cwt. Butcher bulls traded $1/cwt higher to average $129/cwt and trade was reported from $110-153/cwt. Canadian butcher bull exports to the US for the week ending June 11^th totaled 660 head, 2% lower than the same week last year.

Bull.

• Northern U.S. fed cattle supplies are tight, which is supporting interest on the Western Canadian fed market.
• Western Canadian steer carcass weights are the smallest they have been in almost one year.
• Fed calf supplies are being worked through very timely, since the beginning of April, Western Canadian fed slaughter is 10,000 head above last year.

Bear.

• U.S. cattle on feed inventories are record large for the month of June.
• Total beef in cold storage for the end of May is 25% larger than last year.
• Alberta fed cash-to-futures basis for the month of June is the weakest since 2017.

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