Canfax Weekly Article | Report for the week of October 4, 2021

Canfax fed steer and heifer prices closed the week around $157/cwt, $0.25/cwt lower than the previous week. Last week dressed sales were reported from $262.00-263.50 FOB lot. Cattle that traded last week were being booked for late October/early November delivery. All three western Canadian packers procured cattle. Alberta fed cash to futures basis levels strengthened going from +0.89 to +4.65/cwt last week. Western Canadian fed slaughter for the week ending September 25 was 6% larger than last year.

Last week the Canfax average feeder steer and heifer price closed the week $0.50-$2.00/cwt lower. The largest price declines were on heifer calves with prices down $3-4/cwt. Demand for yearlings off grass continues to be strong as prices are trading very close to annual highs. On a cash-to-cash basis, Alberta calf and feeder prices are trading at a premium to the U.S. market. Alberta weekly auction volumes totaled just over 35,000 head. Canadian feeder cattle exports to the U.S. for the week ending September 18 totaled 3,162 head.

Last week Alberta D2 cow prices traded $1.25/cwt higher and live trade was reported from $74-88/cwt. D3 cows averaged $71/cwt. Butcher bulls traded fully steady to average $105/cwt and live trade was reported from $91-120/cwt. Canadian butcher bull exports to the U.S. for the week ending September 18^th totaled 943 head.

Bull

• Alberta D2 cow prices are at the highest point in seven weeks.
• According to USDA, hog and pig inventory on September 1^st was down 4% compared to last year.
• By-product values continue to be strong, trading well above last year.

Bear

• Western Canadian steer carcass weights are record large for the month of September.
• Alberta fed basis levels historically weaken from September to October.
• In western Canada, lift times have started to stretch out, and packers seem to have their October slaughter needs mostly covered.

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