Canfax Weekly Article | Report for the week of July 11, 2022

Last week, Canfax fed steer and heifer price closed around $174/cwt, steady with the previous week. Prices are $19/cwt higher than last year and $30/cwt higher than the five-year average. Last week dressed sales were reported from $288.50-290.50/cwt FOB the lot. Pick up times were all over the map, largely dependent on who bought the cattle. Some cattle will be picked up in 1-2 weeks, while others were being scheduled for mid-August delivery. For the holiday short week ending July 2nd, Western Canadian fed slaughter totaled just over 33,000 head, 14% lower than the same week last year.

On a seasonally light run of calves and feeders, the Canfax average steer price closed the week $1.50/cwt lower, while heifers strengthened $1.50/cwt. Week over week, 8-900 lbs feeders saw the largest price increase strengthening $4-7/cwt. Alberta 850 lb steer price is the highest since February 2016. Last week, steers weighting from 5-700 lbs traded $2-6/cwt weaker. Alberta weekly auction volumes totaled just over 7,000 head, 3,000 head larger than last year. Canadian feeder cattle exports to the US for the week ending June 25th totaled 2,940 head.

Alberta D2 cows traded $0.50/cwt higher last week, and live trade was reported from $98‑115/cwt. D3 cows averaged $94.25/cwt. Butcher bulls traded $1.25/cwt higher to average $132/cwt and trade was reported from $118-153/cwt. Canadian butcher bull exports to the US for the week ending June 25th totaled 1,081 head, 39% larger than the same week last year.

Bull.

• US beef exports for the month of May were larger than last year, with strong shipments to China
• Western Canadian steer carcass weights are the smallest they have been in one year
• Western Canadian feedlots are seeing a little relief on their cost of gains as new and old crop barley prices have weakened

Bear.

• From a seasonal perspective, summer fed cattle supplies remain ample and slaughter volumes are usually the largest during the third quarter
• Beef demand usually slows during the dog days of summer
• Over the past five years, the average decline for Choice cutout values from June to July is 11%

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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