Canfax Weekly Article | Report for the week of May 31, 2021

Canfax fed steer and heifer prices closed last week around $163/cwt, fully steady with the previous week. Last week dressed sales were reported from $269.50-274.50/cwt FOB the lot. Cattle that traded last week were being scheduled for the middle to end of June delivery. With strong prices and basis levels some fed calves are being shipped out 50-100 lbs lighter than normal. Western Canadian fed slaughter for the week ending May 22^nd totaled 40,900 head.

Last week the Canfax average feeder steer and heifer price closed the week $1/cwt higher. Alberta calf and feeder prices are trading at a premium to the US market. Last week calves and light weight stockers traded steady to lower while heavier feeders did strengthen. Since the end of April, 5-600 lb steer and heifer prices have dropped $8-10/cwt. Western Canadian calf and feeder indices closed the week at $218.37/cwt and $190.99/cwt respectively. Alberta weekly auction volumes totaled just under 12,000 head. Canadian feeder cattle exports to the US for the week ending May 15^th totaled 1,873 head.

Last week Alberta D2 cow prices traded $1.75/cwt higher and live trade was reported from $92-112/cwt. D3 cows averaged $89.75/cwt. Butcher bulls traded fully steady to average $113.25/cwt and live trade was reported from $100-134/cwt. Canadian butcher bull exports to the US for the week ending May 15^th totaled 459 head.

Bull.

• In Western Canada fed calves are being pulled forward, one could argue feedlot inventories are in the best shape in over a year
• Canada has been recognized as negligible risk for BSE
• For the end of April, total US beef, chicken and pork in cold storage is below last year

Bear

• Alberta fed cash to futures basis historically weaken from May to June
• Labor continues to be a major issue facing the packing segment
• Fed cattle supplies are expected to remain ample in the US for the month of June

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