Canfax Weekly Article | Report for the week of March 4, 2024

In Alberta last week, the weighted average fed steer and heifer price was around $233.50/cwt live, over $10/cwt higher than the previous week. Alberta fed prices are at the highest point since October 2023. Last week, dressed sales were reported from $368.50-$376.50/cwt FOB the feedlot.

Cattle that traded were being scheduled for early April delivery. U.S. packer interest was noted and moderate volumes of Western Canadian fed slaughter averaged 39,700 head/week, 4 per cent lower than last week.

Last week, the Canfax average feeder steer price was $5.75/cwt higher, while heifer prices strengthened $2.25/cwt. Over the past month, 5-600 pound steer and heifer prices have strengthened $33-$46/cwt. Calf prices are $115/cwt higher than last year.

Steers weighing over 800 pounds traded steady to $3/cwt stronger than last week. Alberta auction volumes totaled just over 30,000 head, 6,000 head larger than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending February 17th totaled 3,038 head.

Alberta D2 cows traded $5/cwt higher and live trade was reported from $135-$168/cwt. D3 cows averaged $130.25/cwt.

Alberta cow prices are trading $7/cwt shy of their record highs set back in June 2023. Last week, butcher bulls traded $2.50/cwt higher, averaging $157.75/cwt, with a trading range from $140-$181/cwt.

Canadian butcher bull exports to the U.S. for the week ending February 17th totaled 385 head.

Bull

• According to the United States Department of Agriculture (USDA), total beef in cold storage for the end of January is 11 per cent lower than last year.
• Based on the five-year average, Alberta fed basis levels historically strengthen from February to March.
• Statistics Canada January 1st cattle inventory report should be viewed as bullish as total cattle inventories are the smallest since 1989.

Bear

• Western Canadian packers still have not picked up all their February contract cattle.
• Canadian fed slaughter volumes continue to run below last year
• There were reports last week one smaller beef processing plant in Missouri has plans to close, due to unforeseen business circumstances.