Canfax Weekly Article | Report for the week of October 7, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $241/cwt live, $0.50/cwt higher than the previous week. From their highs in June, fed prices have declined $23/cwt or 9%. Last week, dressed sales were reported from $402.00-403.50/cwt FOB feedlot. Cattle that traded were being booked anywhere from the second half of October to early November delivery. Light volumes of Western Canadian fed cattle were marketed into the U.S., these cattle will be priced on the five-area average. Over the past couple of weeks, Alberta fed prices have been trading at a $9.50/cwt discount against the Nebraska market.

Last week, the Canfax average feeder steer price was steady, while heifer prices strengthened $3/cwt. Week over week, the largest price increase was on 5-700 pound heifers with prices up $5-9/cwt. There were a few preconditioned calves on the market last week that have been weaned for 45+ days. With lighter volumes of pre-conditioned calves, no premiums were being paid compared to freshly weaned calves. The Western Canadian feeder index closed the week at $361.63/cwt, stronger than the previous week. Alberta auction volumes were just over 46,000 head, 9,000 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending September 21st were 2,375 head.

Alberta D2 cows traded $1.50/cwt lower and live trade was reported from $170-189/cwt. D3 cows averaged $167.50/cwt. Alberta cow prices are trading at a $18/cwt premium against the Ontario market. Last week, butcher bulls traded $2/cwt lower, averaging $200.50/cwt, with a range from $180-225/cwt. Canadian butcher bull exports to the U.S. for the week ending September 21st totaled 664 head.

Bull

• The International Longshoreman’s Association and the United States Maritime Alliance have reached a tentative deal. The strike has been suspended until January 15th to negotiate a new contract.
• Western Canadian cow slaughter volumes continue to run below year ago levels
• Canadian retail beef prices remain historically strong, pointing to strong consumer demand

Bear

• Alberta fed basis levels historically weaken from September to October
• From their highs in August, U.S. 50 per cent trim prices have declined 115 per cent
• Last week, the USDA released its quarterly hogs and pig report, and it should be viewed as neutral to slightly negative. Total U.S. hog inventories were up 0.5 per cent compared to last year