Canfax Weekly Article | Report for the week of May 27, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $259/cwt live, fully steady with the previous week. Fed cattle prices did establish new record highs last week. Competition on the cash market was good with all three Western Canadian packers buying cattle. Dressed sales were reported from $430.00-436.50/cwt FOB the feedlot.

All the cattle that traded would be picked up in June (most of the cattle were being scheduled for the week of June 10th and 17th). Western Canadian fed slaughter for the week ending May 18th totaled just over 37,000 head. For the middle of May (not counting 2020), this is the smallest fed slaughter since 2016.

Last week, the Canfax average feeder steer price was $4.50/cwt higher, while heifer prices eased $1/cwt. Week over week, the largest price increase was on lightweight steer calves with prices advancing $12/cwt. Last week, two classes of cattle established new annual highs 6-700 pound steers and 8-900 pound steers.

Last week, heifers weighing over 800 pounds traded $1-4/cwt lower. Alberta auction volumes totaled just over 12,000 head, 8,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending May 11th totaled 5,316 head.

Alberta D2 cows traded $1/cwt higher and live trade was reported from $175-196/cwt. D3 cows averaged $169/cwt. On a cash-to-cash basis Alberta cow prices are trading $2/cwt premium compared to the US market. Butcher bulls traded $4.25/cwt higher, averaging $203/cwt, with a trading range from $170-215/cwt. Canadian butcher bull exports to the US for the week ending May 11th totaled 600 head.

Bull

• United States Department of Agriculture (UDSA) is forecasting 2025 beef production to be down 5.5 per cent compared to the 2024 projection, which is only down 1.4 per cent from 2023
• Year-to-date U.S. beef cow slaughter is the smallest since 2018
• May 1st cattle on feed inventory are below last year and below the five-year average

Bear

• U.S. steer carcass weights are record large for this May
• Lower slaughter rates in Western Canada are not positive news for the fed cattle market
• Year-to-date 2024 U.S. poultry exports (January-March) are down eight per cent compared to last year