Canfax Weekly Article | Report for the week of June 28, 2021

Canfax fed steer and heifer prices closed last week around $162.25/cwt, $2/cwt lower than the previous week. The last time fed prices averaged over $160/cwt in June was back in 2015, other than 2015 this stands as the second strongest price for June on record. Last week dressed sales were reported from $270-272/cwt FOB the lot. Most of the cattle that traded last week were being scheduled for the week of July 19^th delivery. Alberta fed cash to futures basis weakened going from +$14.73 to +$12.23/cwt last week.

Last week the Canfax average feeder steer price closed the week $1.75/cwt higher while heifer prices on average increased $2.25/cwt. Steers and heifers weighing over 700 lbs established new annual price highs. Trading $2/cwt higher last week, Alberta 7-800 lb steer prices are at the highest point since September 2019. The Western Canadian feeder index closed the week at $203.91/cwt. Alberta weekly auction volumes totaled just under 15,000 head. Canadian feeder cattle exports to the US for the week ending June 12^th totaled 2,359 head.

Last week Alberta D2 cow prices traded $0.75/cwt lower and live trade was reported from $90-113/cwt. D3 cows averaged $89/cwt. Butcher bulls traded $0.50/cwt higher to average $117.50/cwt and live trade was reported from $100-140/cwt. Canadian butcher bull exports to the US for the week ending June 12^th totaled 672 head.

Bull.

• USDA’s June 1^st cattle on feed report should be viewed as neutral to slightly bullish as May placements came in below expectations.
• According to USDA total red meat in cold storage at the end of May is 3% lower than last year.
• Western Canadian fed slaughter was the largest seen this year.

Bear.

• Chinese pork prices have been on a steady decline moderating export demand.
• On a monthly basis, in 6 out of the past 10 years Western Canadian fed prices have declined from June to July.
• Dry conditions are being noted across the Canadian prairies and the Western US.

For over 50 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.

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Photo: Canada Beef Inc.