Canfax Weekly Article | Report for the week of May 5, 2025

The fed market continues to be impressive, setting new highs. Volumes are smaller but fed calves were marketed last week and some have already entered the slaughter mix. Last week, there was no price difference between fed calves and yearlings. The Canfax average fed steer and heifer price closed around $291/cwt live, $4/cwt higher than previous week. Light trade was reported last week with dressed sales reported from $484.00-488.50/cwt FOB the feedlot. Buying interest was noted from all three Western Canadian packers. Cattle that traded were being scheduled anywhere from immediate to early June delivery.

Strengthening live cattle contracts and tighter cattle supplies has support demand for bunk replacement. Over the past month, the largest price increase has been on heifers weighing from 6-700 pounds with prices advancing over $30/cwt. Last week, the Canfax average feeder steer and heifer prices were $3-10/cwt higher. Eastern Canadian feedlot demand remains strong on the western Canadian market. Last week, Alberta heifers over 800 pounds traded $11-15/cwt higher and prices are $70-86/cwt higher than last year. Steers from 6-800 pounds traded steady to $2/cwt stronger. Alberta auction volumes were just over 25,000 head, 5,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending April 19th were 664 head.

Last week, Alberta D2 cows traded $0.50/cwt lower averaging $224/cwt and live trade was reported from $200-247/cwt. D3 cows averaged $202/cwt. Butcher bulls traded $3.50/cwt lower, averaging $241/cwt, with a range from $220-280/cwt. Canadian butcher bull exports to the U.S. for the week ending April 19th were 503 head.

Bull

• Last week, live cattle contracts established new highs
• Beef demand should pick up with Cinco de Mayo and Mother’s Day upcoming
• Alberta fed basis levels historically strengthen from April to May

Bear

• U.S. hide values are trading 8 per cent below the five-year average. Other than a brief stretch in May 2024, hide values are trading at the lowest point since 2020
• U.S. pork cutout values have recently slipped below year ago levels
• The Canadian dollar has strengthened in recent weeks, this is not positive news for Canadian beef exports