Canfax Weekly Article | Report for the week of September 3, 2024

Alberta fed steer prices closed the week near $245.90/cwt, $2/cwt lower than the previous week. Market-ready supplies are seasonally increasing, shifting leverage to the processing sector. Dressed sales ranged from $405-412/cwt FOB the feedlot. Delivery times were reported from late September to the middle of October. All three packers procured cattle last week, though numbers procured were somewhat limited. The cash-to-futures basis weakened around $4.50/cwt from the previous week.

Most classes of Alberta feeder steers were under pressure last week; 4-600 pound steers closed the week $6-8/cwt softer, while heavy feeders 800 pounds and over were $2-8/cwt softer. Mid-weight 6-800 pound steers were the bright spot, trading steady to $5/cwt stronger. Alberta auction volumes totaled almost 35,000 head last week, the third largest volume for the same week in the last decade. The September feeder futures contract dropped nearly $14/cwt between August 1st and August 22nd, putting pressure on the feeder market. Heifers traded softer last week. The Canfax average saw steers decline $3/cwt week over week, with heifers down $7/cwt.

Last week, Alberta D2 cows through auction marts traded $1/cwt softer, with D3 cows down $6/cwt from the previous week. Railgrade cows traded mostly steady, while butcher bulls were $2/cwt higher. From a seasonal perspective, cull cow prices are expected to move inconsistently lower from now until November.

Bull

• All live cattle and feeder cattle futures contracts rebounded higher last Friday to end August on a positive note
• Alberta cull cow prices in August were around 30 per cent higher than a year ago
• YTD U.S. beef cow slaughter is 16 per cent lower than last year, dairy cow slaughter is down 14 per cent

Bear

• Beef cutouts were under pressure last week. Seasonally, cutout values are anticipated to drift lower
• The Alberta fed market is at its lowest point since April
• The recent strength of the Canadian dollar has made Canadian cattle and beef exports more expensive for U.S. buyers