Canfax Weekly Article | Report for the week of June 3, 2024

Last week, Alberta fed market saw strong competition among packers, although U.S. packer interest remains light. Steers and heifers traded at $262/cwt and $260 respectively, $2/cwt higher than the previous week.

Dressed sales were reported at $438 to $440/cwt delivered, steady to $6/cwt stronger than last week. All cattle that traded are scheduled for delivery throughout the weeks of June 10th, 17th and 24th. The Alberta fed cash-to-futures basis was $2.45/cwt stronger than the previous week and $4.63/cwt stronger compared to the last decades at +$10.63/cwt. Canadian fed slaughter for week ending May 25th was 41,245 head, down 14 per cent from the previous week.

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Last week, Alberta auction volumes were slightly over 15,000 head. Alberta steers traded mix between lightweight and heavyweight. Alberta 6-700 pound steer traded $6.25/cwt softer, and 7-800 pound steer traded $8.94/cwt stronger. Similarly, Alberta heifers traded steady from 6-900 pound, while 5-600 pound traded $2.98/cwt softer.

The only two weight class traded stronger are 4-500 pound and 900+ pound from $18.97/cwt and $2.00/cwt respectively. Year to May 18th feeder exports to the U.S. are 65,794 head, 5 per cent larger than a year ago.

Last week, Alberta D2 and D3 continue to trade stronger at $189/cwt and $170/cwt respectively, trading $1-4/cwt stronger than the previous week. Butcher bulls traded at $204/cwt, $1.20 stronger than the previous week.

For the holiday short week, Western Canadian cow slaughter was 4,500 head, 22 per cent below last year. This is the fourth consecutive week that cow slaughter volumes run below last year. YTD Alberta cow prices have been trading at a $6.00/cwt discount against the U.S. market compared to the $1.50/cwt discount from last year.

Bull

• Demand for cow-calf pair is much stronger than last year
• 7-800 pound steers established a new record high
• Fourth consecutive week of lower cow slaughter volumes

Bear

• Cargill strike pushing Eastern Canada cattle to Alberta for slaughter
• U.S. steer carcass weights remain record large
• YTD Alberta cow prices trading discount against the U.S. market