Canfax Weekly Article | Report for the week of September 16, 2024

In Alberta last week, fed prices averaged in the low $240/cwt moving lower for the eighth consecutive week, this is still $8-9/cwt higher than a year ago. Light dressed sales were reported from $405-$406/cwt delivered. Cattle that traded is being scheduled for delivery from anywhere early October to early November. Alberta fed cash-to-futures basis was reported at +$1.47/cwt, for the middle of September this is the third strongest basis on record. YTD Western Canadian fed slaughter volumes are now slightly larger than last year.

Last week, Alberta auction volumes remained small at 28,274 head, 30 per cent below the five-year average for the same week. Volumes are expected to rise significantly in the latter half of the month as the fall run approaches. The Canfax average for steers and heifer traded $1/cwt and $5/cwt lower respectively than the previous week. The cash market continues to be under pressure with prices below forward delivery sales. Lethbridge barley traded $5/tonne higher for the first time in ten weeks at $262.50/tonne.

The Alberta non-fed market had a softer tone this week, a seasonal softening trend is expected until October. Alberta D2 and D3 cows were under pressure trading $1.80/cwt and $0.50/cwt lower respectively. Butcher bulls traded $3/cwt lower than the previous week. Feeder cows eased around $9/cwt lower this week. Feeder cow prices have been largely rangebound between $190-200/cwt since early May.

Bull

• The third strongest future basis on record for the middle of September
• Canadian fed cattle shipments to the U.S. are running above last year
• Pasture/grass condition are in better shape versus last year

Bear

• Contract negotiations are still going between international Longshoremen’s association (not sounding productive)
• The cash feeder market continues to be under pressure with prices below forward delivery sales
• Alberta non-fed market is seasonally expected to have a softer tone until October