Canfax Weekly Article | Report for the week of March 20, 2023

The Canfax fed steer and heifer price closed the week at around $207/cwt, $3.75/cwt higher than the previous week. Fed prices have traded higher for thirteen consecutive weeks, establishing new record highs. Last week, dressed sales were reported from $345.75-346.50/cwt FOB the lot. Competition on the cash market was limited, with one packer buying most of the cattle. Cattle that traded were being scheduled for the week of March 28 delivery.

The Canfax average feeder steer and heifer price was $2-4/cwt higher. Last week, the largest price jump was 5-600 lb calves, with prices advancing $6/cwt. Heifer calves and light-weight stockers weighing from 3-600 lb, traded $3/cwt stronger. Alberta 8-900 lb feeders traded steady to $2/cwt higher; prices are $54-63/cwt higher than a year ago. Western Canadian barley prices continue to drift lower, trading at the lowest point since September. Alberta auction volumes totaled just more than 28,000 head, 3,000 head fewer than the same week last year. Over the past four weeks, Canadian feeder cattle export to the U.S. have averaged 2,319 head per week, compared to 8,035 head per week last year.

Alberta D2 cows traded $5.75/cwt higher than the previous week, and live trade was reported from $118‑146/cwt. D3 cows averaged $113.50/cwt. Since the beginning of March, cow prices have rallied at $18/cwt. Butcher bulls traded $2/cwt higher, averaging $141.75/cwt, with a trading range from $121-167/cwt. Canadian butcher bull exports to the U.S. for the week ending March 4 totaled 453 head.

Bull:

• Alberta fed cash-to-futures basis is the strongest since September.
• U.S. March 1 cattle on feed inventories are 4% lower than last year; furthermore, this is the smallest March 1 on feed inventory since 2017.
• U.S. packers have fewer March and April contract cattle compared to last year.

Bear:

• The financial crisis at Silicon Valley Bank spilled into commodity markets, pressuring live and feeder cattle contracts.
• U.S. beef exports in January were 17% lower than last year, and this was the third month in a row that beef export have been below last year.
• Primal brisket values continue to struggle relative to loins, ribs, and round prices.