Canfax Weekly Article | Report for the week of May 30, 2022

Last week, Canfax fed steer and heifer price closed around $172/cwt, $1/cwt lower than the previous week. This is the first time in nine weeks that fed prices have been lower. Alberta fed prices are trading at a discount to both the Ontario and US markets. Last week, dressed sales were reported from $286.50-288.50/cwt FOB the lot. Cattle that traded last week were being scheduled for late June/early July delivery. Western Canadian fed slaughter for the week ending May 21^st totaled just over 42,000 head, 4% larger than last year. For the second half of May this is the largest fed slaughter since 2006.

Canfax average feeder steer and heifer prices closed the week mostly steady. Over the past couple of weeks, heifers have made up a large percentage of the feeder offering. Alberta 6‑700 lb steers traded $3/cwt higher and are at the highest level since June 2017.  Feeder weighing over 800 lbs traded $1-4/cwt lower. The Western Canadian calf index closed the week at $227.57/cwt. Alberta weekly auction volumes totaled just over 19,000 head, 7,000 head larger than last year. Canadian feeder cattle exports to the US for the week ending May 14^th totaled 3,571 head.

Alberta D2 cows traded $1.50/cwt lower last week, and live trade was reported from $92‑110/cwt. D3 cows averaged $90.25/cwt. Butcher bulls traded $0.50/cwt higher to average $124.75/cwt and trade was reported from $105-141/cwt. Canadian butcher bull exports to the US for the week ending May 14^th totaled 1,131 head, 146% larger than the same week last year.

Bull:

• U.S. steer carcass weights are the smallest since July
• Summer grilling weather has finally arrived
• Canadian cow prices remain historically strong

Bear:

• U.S. beef and pork in cold storage for the end of April is 19% and 16% higher respectively compared to last year
• Based on the five-year average, Alberta fed cash to futures basis levels historically weaken from May to June
• Canadian fed beef production has been record large for the past five weeks

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