Canfax Weekly Article | Report for the week of January 24, 2022

Last week the Canfax fed steer price closed around $160.25/cwt, $5/cwt higher than the previous week. Fed prices are $10/cwt higher than last year but $3.50/cwt lower than 2020. Last week dressed sales were reported from $257.00-276.50/cwt FOB lot. One packer was limiting the amount of cattle that they were buying from each producer. Cattle that traded last week were being scheduled for the week of February 14 and 21 delivery.

The Canfax average feeder steer price closed last week steady while heifer prices eased $1.50/cwt. Year over year the largest price increase is on steers over 900 lb, $20/cwt higher than a year ago. Last week heifers weighing from 7-900 lb traded $1-3/cwt lower while same weight steers traded $1/cwt weaker. Alberta 550 lb steer prices were steady while heifer calves strengthened $2/cwt. Western Canadian calf and feeder indices closed the week at $213.71/cwt and $193.63/cwt respectively. Alberta weekly auction volumes totaled just over 40,000 head last week. Canadian feeder cattle exports to the US for the week ending January 8 totaled 1,766 head.

Alberta D2 cows traded $2.75/cwt higher last week and live trade was reported from $70-84/cwt. D3 cows averaged $66/cwt. Butcher bulls traded $3.25/cwt lower to average $101/cwt and live trade was reported from $85-115/cwt. Canadian butcher bull exports to the U.S. for the week ending January 8 totaled 144 head.

Bull.

• South Korea has lifted its import suspension on Canadian beef.
• Western Canadian slaughter volumes for the first two weeks in January were larger than expected.
• YTD Canadian beef exports (Jan-Nov 21) are 22% higher in volume compared to last year.

Bear.

• USDA’s January 1 Cattle on Feed report should be viewed as bearish as December placements were larger than expected.
• Grain shipments from the U.S. into Canada have been delayed and are behind schedule, leaving many western Canadian feedlot operators scrambling to find feed grain.
• USDA is forecasting 2022 total beef exports to be down 5% compared to 2021.

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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