Canfax Weekly Article | Report for the week of May 13, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $257/cwt live, fully steady with the previous week. Fed calves accounted for roughly 75 per cent of last week’s cash offering while the balance was yearlings.

Competition on the Western Canadian market was good with all three Western Canadian packers procuring cattle. Last week, dressed sales were reported from $423.50-431.50/cwt FOB the feedlot. Cattle that traded were being scheduled anywhere from the second half of May to mid-June delivery depending on the buyer. On a cash-to-cash basis, this is the fourth consecutive week that Alberta fed prices have been at a premium to the Nebraska market.

Last week, the Canfax average feeder steer price was $2.50/cwt higher, while heifer prices were mostly steady. Week over week, the largest price increase was on light weight steer calves with prices advancing $9/cwt.

Alberta 800+ pound heifers have traded $5-6/cwt stronger and are roughly $50/cwt higher than a year ago. Alberta 5-600 pound steers prices have been trading sideways for the past five weeks. Alberta auction volumes totaled just over 14,000 head, 7,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending April 27th totaled 4,144 head.

Alberta D2 cows traded $1/cwt higher and live trade was reported from $170-198/cwt. D3 cows averaged $164/cwt. For the week ending May 4th, Western Canadian cow slaughter was the smallest seen this year. Last week, butcher bulls traded $3/cwt lower, averaging $190.50/cwt, with a trading range from $170-215/cwt. Canadian butcher bull exports to the U.S. for the week ending April 27th totaled 631 head.

Bull

• Canadian beef exports for the month of March were larger than last year and larger than the five -year average.
• With more fed calves entering the slaughter mix Western Canadian steer carcass weights have declined sharply.
• Last week’s Alberta fed cash to futures basis was stronger than last year and stronger than the five-year average.

Bear

• U.S. Choice beef cutout values have struggled and are trading $10/cwt below las year
• Western Canadian packer seem to be a little bit better positioned with cattle as lift times have started to stretch out compared to a couple weeks ago.
• U.S. 50 per cent trim prices have been disappointing relative to the 90% trim market.