Canfax Weekly Article | Report for the week of May 20, 2024

Last week, Alberta fed market traded actively. There was good competition among packers, despite lack of interest from U.S. packers. Both steers and heifers this week traded slightly stronger in the high $250s to 260/cwt after trading sideway for the past three weeks.

Dressed sales were reported at $430-437/cwt, with most sales in $430-432/cwt. Cattle that are traded are scheduled for pick up throughout June. Alberta cash-to-futures basis reported at $17/cwt, steady with last week. Canadian fed cattle slaughter for the week ending May 11th was over 48,000 head, down 1 per cent from previous week.

Last week, Alberta auction volumes were slightly over 17,000 head. Alberta 4-800 lb steer traded $1-8/cwt softer, while heavyweight steer traded $1-5/cwt stronger. Heifers at 4-500 pounds and 800+ pounds traded steady to $6/cwt softer, while heifer from 5-800 pounds traded $5-7/cwt stronger.

For the week ending May 4th, feeder cattle exports to the US were 5,113 head, 3 per cent smaller than last year. Year-to-date (YTD) feeder export at 56,091 head, are 5 per cent larger than last year.

Last week, Alberta D2 cows and D3 cows both traded $3-5/cwt stronger at $157.29/cwt and $131.15/cwt respectively. Butcher bulls traded $198.80/cwt; $8/cwt higher than a week ago.

Western Canadian cow slaughter for the week ending May 11th were just over 5,100 head, for early May this is the smallest slaughter since 2017 (excluding 2020). For week ending May 4th, butcher bull exports to the U.S. were 865 head, the largest for the year. YTD butcher bull exports are down 19 per cent.

Bull

• Alberta fed cash-to-futures basis is stronger than last year and the second strongest basis record for the same week
• Smallest Western Canadian cow slaughter for early May since 2017 (excluding 2020)
• Alberta butcher bulls hit new record high prices, pushing close to $200/cwt

Bear

• Potential labour strike at Cargill Guelph plant
• U.S. carcass weights remain record large
• U.S. fed slaughter continues to run below last year