Canfax Weekly Article | Report for the week of May 6, 2024

In Alberta last week, fed steers and heifers both traded steady at the mid to high $250s/cwt. There was good competition among packers throughout the week.

Dressed sales remain steady at $430-432/cwt delivered; with cattle traded being scheduled for pick up in one to two weeks. Alberta cash-to-futures basis is $9/cwt stronger than last week at $19/cwt, this is the strongest basis since June of 2021.

For the week ending April 27th, Canadian fed slaughter total a little over 48,000 heads, down 6 per cent from the previous weeks, but remain 2 per cent higher compared to the five-year average.

Last week, Alberta auctions had over 30,000 head. Grass type steers traded steady to $7/cwt weaker, while heavyweight steer traded steady to $9/cwt stronger. Heifers traded steady to $9/cwt weaker with only 3-400 pounds rallying $18/cwt.

For the week ending April 20th feeder cattle exports to the US totaled 5,857 head, up 38 per cent from last year and the largest weekly export to date. YTD feeder export to the U.S. totaled 46,834 head, up 9 per cent from a year ago.

Last week, Alberta D2 and D3 cow traded $181/cwt and $167/cwt respectively, $2-3 stronger than last week. Alberta cow prices have just recently been at a slight premium against the US market. This is only the second time this year cow prices have been at a premium to the US. Butcher bulls traded steady this week at $194/cwt.

YTD Western Canadian non-fed beef production is 6 per cent smaller than last year, while Eastern Canada non-fed beef production is down 12 per cent.

Bull

• Strongest Alberta cash-to-future basis since June of 2021
• Cow prices are trading at premium against the U.S.
• YTD U.S. cow slaughter running below historical average, lowest since 2017

Bear

• U.S. carcass weights remain steady at historically elevated levels
• CN Rail and CPKN have voted in favour of a strike mandate
• Southern Alberta water irrigation districts have announced water restrictions