Canfax Weekly Article | Report for the week of December 20, 2021

Last week the Canfax fed steer and heifer prices closed around $165/cwt, $1/cwt higher than the previous week. Alberta fed prices did establish new annual price highs last week. From their summer lows in July, fed prices have rallied 10%. Over the past decade this is one of the smallest rallies from summer lows to late year highs. Last week dressed sales were reported from $274.50-276.75/cwt FOB lot. Cattle that traded were being scheduled for the week of January 3^rd, 10^th and 17^th delivery. For the middle of December, Alberta fed cash to futures basis levels are the weakest since 2015.  

The Canfax average feeder steer price closed last week $1.50/cwt higher while heifer prices strengthened $3/cwt. Week over week the largest prices increase was on heifers over 800 lb with prices $5-6/cwt higher. Alberta 550 lb steer and heifer calves traded $1-2/cwt higher and are at the highest point since October. On a cash-to-cash basis, Alberta calf and feeder prices are at a discount to the U.S. market. Western Canadian calf and feeder indices closed the week at $206.84/cwt and $189.33/cwt respectively. Alberta weekly auction volumes totaled just over 33,000 head last week. Canadian feeder cattle exports to the U.S. for the week ending December 4^th totaled 4,937 head.

Alberta D2 cows traded $4.50/cwt higher last week and live trade was reported from $70-84/cwt. D3 cows averaged $67.50/cwt. Butcher bulls traded $1/cwt higher to average $99.75/cwt and live trade was reported from $85-115/cwt. Canadian butcher bull exports to the U.S. for the week ending December 4^th totaled 602 head.

Bull.

• Ontario fed prices have been strong and have not seasonally weakened.
• Alberta D2 cow prices have increased $9/cwt over the past two weeks.
• According to USDA, beef and pork retail prices for November are 18-20% higher than last year.

Bear.

• AB/SK December 1^st cattle on feed inventories remain historically larger.
• Holiday buying has mostly wrapped up and beef cutout values are still searching for a bottom.
• Total U.S. pork exports in October were down 8% compared to last year, and exports to China in October were down 63%.

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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