Canfax Weekly Article | Report for the week of Sept 6, 2021

Canfax fed steer and heifer prices closed the week around $155.50/cwt, $1/cwt higher than the previous week. Fed prices have trended higher for four straight weeks. Last week dressed sales were reported from $259.75-261.50 FOB lot. Cattle that traded last week were being booked anywhere from the middle to late September. Alberta fed cash to futures basis levels weakened going from -$2.15 to -$4.68/cwt last week.

Last week the Canfax average feeder steer and heifer prices closed the week $1.50-2.25/cwt higher. Calves and light weight stockers traded $2-8/cwt higher. Alberta 8-900 lb feeders traded $1-4/cwt higher setting new annual price highs. On a cash-to-cash basis Alberta calf and feeder prices are still at a slight premium to the U.S. Alberta weekly auction volumes totaled just over 35,000 head. Canadian feeder cattle exports to the U.S. for the week ending August 21^st totaled 6,004 head.

Last week Alberta D2 cow prices traded fully steady and live trade was reported from $70-84/cwt. D3 cows averaged $67.50/cwt. Butcher bulls traded $2/cwt lower to average $105/cwt and live trade was reported from $92-125/cwt. Canadian butcher bull exports to the US for the week ending August 21 totaled 1,330 head.

Bull.

• Between big slaughter volumes in Western Canada and decent fed cattle export volumes to the US, supplies are being worked through rather aggressively.
• US beef exports for the month of July were 17% larger than last year.
• US beef and pork in cold storage at the end of July is below last year.

Bear.

• Based on the five-year average, the Alberta fed cash to futures basis historically weakens from August to September.
• U.S. weekly cattle slaughter was disappointing last week (624,000 head), falling well short of early week estimates.
• September is traditionally a slow beef demand month as back to school expenses and summer holiday bills come due.

For over 50 years, Canfax has provided expert analysis of markets and trends in the ever changing North American beef industry. In this new millennium, cattlemen, feedlot managers, and agri-business professionals will continue to rely on up-to-the-minute information as an essential tool for maximizing profit in today’s beef sector. Whether your operation needs to plan for three hours or three years into the future, Canfax delivers timely, accurate information for 21st Century cattle industry professionals.

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