Canfax Weekly Article | Report for the week of Sept 27, 2021

Over the past month fed prices have traded mostly sideways averaging from $156-158/cwt. On a cash to cash basis, Alberta fed prices have moved back to a premium against the U.S. market. Active trade was reported with all three Western Canadian packers buying cattle last week. Dressed sales were reported from $264-266/cwt delivered, and cattle that traded were being scheduled anywhere from the week of October 11 to 25th for delivery. Canadian fed cattle/slaughter cow exports for the week ending September 11 were 9,062 head, 27% higher than the same week a year ago.

Feeder prices were generally steady last week, but the market tone appeared somewhat sluggish. Light calves less than 400 lbs saw prices soften on a spotty offering of varied quality. All feeder steers over 500 lb traded steady to stronger last week while similar weight heifers saw prices steady to modestly lower. Large feeders over 700 lb traded fully steady with good demand to place against the first and second quarter fed market. No significant price premium was observed for October-November deferred feeder delivery last week. YTD auction volumes are tracking 32% larger than year ago at 985,133 head. Feeder exports to the US for the week ending September 11th continued significantly larger than last year and have been reported larger for the past 17 weeks.

A light non-fed offering was reported at auction last week and slaughter cow prices traded generally steady with the previous week. D2 and D3 cows averaged $80.17 and $70.79/cwt respectively. Dressed cow bids were mostly steady at around $155-160/cwt delivered. Butcher bull prices realigned $2.32/cwt lower following last week’s price pop to average $105.30/cwt. Good export demand and manageable supplies will continue to support prices, but seasonal pressure is expected further into fall.

Bull.

• Imported corn has moderated feed grain prices.
• Total U.S. beef in cold storage for the end of August was reported 8% lower than year ago.
• The fed basis is seasonally strong and Alberta traded at a premium to the U.S. this week.

Bear.

• Canadian fed steer carcass weights are poised to set a new annual high.
• The USDA indicated more cattle have been on feed for over 120 days or more than year ago and large fed cattle supplies will continue.
• Labor shortages continue to plague the packing sector.

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