Canfax Weekly Article | Report for the week of November 20, 2023

Sale volumes were too light to establish a weighted average fed price, but the market tone was steady to slightly lower. Last week dressed sales and bids were marked at $385/cwt delivered. Cattle that traded were being scheduled for early January delivery. Competition on the cash market has been limited, in some instances packers were not even bidding on some cattle. Over the past few weeks, Alberta fed prices have been trading at roughly a $18/cwt discount against the Nebraska market. For the week ending November 11th Western Canadian fed slaughter totaled just over 43,000 head, 7% lower than the same week last year. Since the beginning of July, Western Canadian fed slaughter volumes are 45,500 head below last year.

The Canfax average feeder steer price was $5.75/cwt lower, while heifer prices eased $2.25/cwt. Week over week the largest declines were on heavy steers weighing 7-900 lb with prices dropping $10/cwt. Feeders over 800 lb are trading at the lowest point since late July. From their highs in September, 550 lb steer price has declined $19.25/cwt while same weight heifers have declined $33.50/cwt. Last week, the Western Canadian calf index closed the week $364/cwt, $7.50/cwt weaker. Alberta auction volumes totaled just over 60,000 head, 14,000 head smaller than the same week last year. Canadian feeder cattle exports to the U.S. for the week ending November 4th totaled 4,133 head, 5% lower than the same week last year.

Alberta D2 cows traded $5.75/cwt lower and live trade was reported from $120-136/cwt. D3 cows averaged $115/cwt. Cow prices are at the lowest point since early March. Last week, butcher bulls traded $5.50/cwt lower, averaging $147.50/cwt, with a trading range from $130-167/cwt. Canadian butcher bull exports to the U.S. for the week ending November 4th totaled 627 head, YTD Canadian bull exports are down 17% compared to last year.

Bull.

• Last Friday’s cattle on feed report should be viewed as neutral to slightly positive as October feedlot placements came in below estimates.
• According to the USDA, the All-fresh beef retail price for the month of October is record high.
• Third quarter Canadian beef exports to the U.S. were 3% larger than last year.

Bear.

• U.S. 50% trim prices are trading at the lowest point this year.
• U.S. pork cutout is trading 5% below last year.
• Western Canadian packers are comfortably bought out in front.