Canfax Weekly Article | Report for the week of March 13, 2023

Closing at $203.90/cwt and $210.13/cwt respectively, both Western and Eastern Canadian fed steer prices set new all-time highs. In Western Canada, dressed sales were reported at $342/cwt delivered. Cattle were being scheduled for the second half of March delivery. A few Alberta fed cattle were marketed to the U.S. on a five areas formula basis. So far this year, formula-priced fed cattle have accounted for 17% of total fed cattle exports, and formula volumes are 40% larger than last year. In Ontario, dressed sales ranged from $350-352/cwt delivered, $8/cwt higher than the previous week. A few Ontario cattle were marketed to the U.S. and working back to around $217/cwt FOB the feedlot live.

A seasonally large offering of feeders saw prices continue higher. Special feeder sales with large quality lots commanded a marked premium, and average prices rallied higher. Calf prices continued to gain price momentum, and middle weight 5-600 lb steer prices were $7/cwt shy of all-time record highs. Calves from 6-700 lb rallied around $7/cwt higher than the previous week, and larger feeders more than 800 lb traded $3-4/cwt stronger. Total auction volumes were significantly larger than the previous week at 38,579 head, and YTD auction volumes were 6% lower than a year ago at 267,084 head. Canadian feeder exports to the U.S. for the week ending February 25 totaled 1,750 head and were 78% lower than the same week last year.

D2 slaughter cows surged sharply, $12.80/cwt higher than the previous week to average $126.30/cwt, and D3 cows rallied $6.70/cwt higher to close the week at $107.20. Dressed cow bids strengthened to $235-242/cwt delivered. Butcher bull prices firmed modestly to average $139.78/cwt. Western Canadian non-fed slaughter for the week ending March 4 was 5% larger than the previous week at 8,118 head, and YTD was up 19% to 81,074 head.

Bull:

• Cattle on feed inventories at the start of March totaled 1.03 million head, 5% smaller than year ago.
• Canadian barley prices continue to moderate.
• Market ready fed supplies are manageable.

Bear:

• A proposed “product of U.S.” label change is expected to impact Canadian beef and pork sectors.
• Alberta Jan 1 beef breeding heifer inventories are estimated more than 6% lower than year ago.
• The fed basis remains seasonally weak.