Canfax Weekly Article | Report for the week of October 24, 2022

Dressed sales last week were mostly reported at $302/cwt delivered. Cattle that traded were scheduled for late November/early December delivery. Light volumes of Alberta cattle traded to the U.S.; depending on freight and dressing percentage, cattle were working back to the $186/cwt area FOB the lot. Sales to the U.S. were at a premium over local deals and cattle would be picked up in a couple weeks. Truck availability and grading specs are likely two factors limiting producers from selling more cattle into the U.S. Western Canadian steer carcass weights increased 11 lb to average 979 lb, this is a new record.

Alberta feeders traded mixed last week, with calf prices higher and large feeders over 700 lb traded sporadically softer on reduced quality of lot size. Light steer calves less than 500 lb rallied $8-9/cwt higher on broad based good demand for backgrounders and prices were at a modest premium to Ontario. Larger calves from 5-700 lb traded steady to $2/cwt higher, whereas large feeders from 7-900 lb traded steady to $2/cwt lower. Yearlings over 900 lb traded mixed with steer prices easing lower on reduced quality, while open replacement quality heifers fueled stronger prices. Alberta auction volumes were 35% larger than the previous week at 76,975 head. Canadian feeder exports to the U.S. for the week ending October 8th were up 51% from the previous week to 2,655 head and were 30% lower than the same week last year.

A few more non-fed cattle were on offer last week and prices were mixed. D2 slaughter cow prices continued steady, while D3 prices eased $1/cwt lower. Dressed cow bids seasonally softened to around $200-205/cwt delivered. D2 slaughter cows traded at a CAN $5/cwt discount to US utility cows and supportive export demand should continue for Canadian non-fed cattle. Butcher bulls maintained price momentum firming $1.21/cwt higher to average $131.10/cwt.

Bull.

• U.S. buyer interest should continue to vent fed cattle south.
• Cutout values should gain seasonal momentum moving forward.
• USDA reports October 1st Cattle on Feed is almost 1% lower than year ago.

Bear.

• Market ready packer inventories are ample.
• Feed grain prices continue to firm higher.
• Beef at retail remains competitive.

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