Canfax Weekly Article | Report for the week of May 15, 2023

The Canfax fed steer and heifer price closed the week at around $230.75/cwt, mostly steady with the previous week. Fed cattle prices contnue to trade at record high levels. Fed calf supplies continue to be light and many producers were indicating calves need more days on feed before they are marketed.  Last week, dressed sales were reported from $383.50-388.50/cwt FOB the lot. Most of the cattle that traded would be picked up in 1-2 weeks. Some producers did negotiate a longer delivery time and a few cattle would not be picked up until June. Alberta fed cash to futures basis did strengthen going from +$9.60/cwt to +$13.51/cwt, the strongest basis levels have been all year.

The Canfax average feeder steer price was $0.50/cwt higher while heifer prices strengthened $2.25/cwt. Feeders weighing over 800 lb traded steady to $2/cwt higher setting new annual price highs. Over the past couple of weeks Alberta 5-600 lb steers have averaged in the mid-$340’s/cwt, $110/cwt higher than last year.  The Western Canadian calf index closed the week at $334.08/cwt. Alberta auction volumes totaled just over 22,000 head, 2,000 head larger than week last year. Canadian feeder cattle exports to the U.S. for the week ending April 29th totaled 5,194 head.

Alberta D2 cows traded $0.50/cwt lower than the previous week, and live trade was reported from $140‑164/cwt. D3 cows averaged $131.75/cwt. Alberta cow prices are trading at a $19/cwt premium against the U.S. utility cow market. This is the largest premium Alberta cow prices have been to the U.S. market since May 2021. Butcher bulls traded $1/cwt higher, averaging $156/cwt, with a trading range from $145-172/cwt. Canadian butcher bull exports to the U.S. for the week ending April 29th totaled 547 head.

Bull.

• Western Canadian fed slaughter has been below last year for six consecutive weeks.
• AB/SK May 1^st cattle on feed inventories are below last year and below the five-year average.
• From January to March Canadian beef exports are 5% higher than last year.

Bear.

• Weekly broiler production was estimated at 871 million pounds, 5% higher than last year.
• U.S. pork retail prices have declined for six consecutive months.
• Over the past month Northern U.S. cash prices have dropped $8/cwt, Southern US prices have declined $5/cwt.