Canfax Weekly Article | Report for the week of March 14, 2022

Last week the Canfax fed steer and heifer price closed around $162/cwt, $0.50/cwt lower than the previous week. Competition on the cash market was limited, and with the potential strike at Canadian Pacific Railways one packer was not bidding on cattle last week. Dressed sales were reported from $269.00-273.50/cwt FOB lot. Cattle that traded last week were being scheduled for the week of April 11^th delivery. For the week ending March 5^th western Canadian fed slaughter totaled over 47,000 head, the largest weekly slaughter seen this year.

The Canfax average feeder steer and heifer price closed the week $1-2/cwt lower. Last week steers weighing from 6-800 lb traded $2/cwt lower. Alberta steers weighing from 8-900 lb have traded sideways for the past five weeks, ranging from $188-189/cwt. The western Canadian calf index closed the week at $222.95/cwt. Alberta weekly auction volumes totaled just over 35,000 head last week, down 14% from the same time last year. Canadian feeder cattle exports to the U.S. for the week ending February 26^th totaled 7,842 head up 316% from last year.

Alberta D2 cows traded $2.75/cwt higher last week and live trade was reported from $85-102/cwt. D3 cows averaged $82/cwt. Butcher bulls traded $0.50/cwt higher to average $116/cwt and live trade was reported from $100-135/cwt. Canadian butcher bull exports to the U.S. for the week ending February 26^th totaled 607 head.

Bull.

• Canadian beef exports in January were higher than last year and January beef imports were lower compared to last year.
• The All-fresh U.S. beef retail price for the month of February is 15% higher than last year.
• U.S. 90% trim prices continue to trade near record high levels.

Bear.

• Since the middle of February, August/October live cattle contracts have declined 400-600 points.
• More fed calves are expected to be available in April, suggesting there won’t be much or any gap between yearlings and fed calves.
• Inflation is taking its toll (higher prices for gasoline, food, borrowing money) and consumer dollars are going to be stretched which is concerning for overall protein demand.

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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