Canfax Weekly Article | Report for the week of August 1, 2022

Last week, Canfax fed steer and heifer price closed around $174.75/cwt, $0.75/cwt higher than the previous week. Fed cattle prices are $25/cwt higher than last year. Last week dressed sales were reported from $291.50-292.50/cwt FOB the lot. Most of the cattle that traded last week were being scheduled for late August/early September delivery. Last week on a cash-to-cash basis, Alberta fed prices were at a $4/cwt discount against the Nebraska market. This is one of the strongest cash to cash basis levels seen this year. For the week ending July 23rd, Western Canadian steer carcass weights average 883 lbs, 2 lb smaller than last year.

The Canfax average steer and heifer price closed the week $1.50-3.00/cwt lower. Lower prices were noted on all classes of cattle except 900+ lb steers and heifers. Alberta 5-600 lb steer and heifers traded $1-3/cwt lower last week. Feeders weighing from 8-900 lb were reported $4‑5/cwt weaker. Western Canadian barley prices have moved lower over the past couple of weeks. Alberta weekly auction volumes totaled just under 6,000 head, 17,500 head smaller than last year. Canadian feeder cattle exports to the U.S. for the week ending July 16th totaled 2,839 head. For the middle of July, this is the largest export volume since 2015.

Alberta D2 cows traded $2.25/cwt higher last week, and live trade was reported from $100‑121/cwt. D3 cows averaged $98.50/cwt. Butcher bulls traded fully steady to average $131.25/cwt and trade was reported from $110-150/cwt. Canadian butcher bull exports to the U.S. for the week ending July 16th totaled 1,140 head. YTD bull exports to the U.S. are 15% higher than last year.

Bull.

• From January to May, Canadian beef exports are up 6% in volume compared to last year.
• YTD Canadian Prime and AAA grading percentage are 2% and 7% higher respectively versus last year.
• USDA’s July 1st cattle inventory report should be viewed as bullish news. Total July 1st cattle inventories are the smallest since 2015.

Bear.

• U.S. beef in cold storage at the end of June is 29% larger than last year.
• Western Canadian packers are behind schedule picking cattle up.
• U.S. weekly beef production was estimated at 542 million pounds, record large for the end of July.

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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