Canfax Weekly Article | Report for the week of May 2, 2022

Last week, Canfax fed steer and heifer prices closed around $169.25/cwt, $2/cwt higher than the previous week. Fed prices are $11/cwt higher than last year and $15/cwt higher than the five-year average. Competition on the cash market was mixed, with one packer buying most of the cattle. Dressed sales were reported from $280.50-282.50/cwt FOB the lot. Cattle that traded last week were being scheduled for late-May to early-June delivery. Western Canadian fed slaughter for the week ending April 23^rd totaled just over 47,000, 14% larger than last year. YTD western Canadian fed slaughter is 4% larger than last year.  

Canfax average feeder steer price closed the week $2/cwt higher, while heifers strengthened $3.50/cwt. Alberta 5-600 lb steers/heifers were reported $5-6/cwt higher. Feeders weighing over 900 lb traded $3-5/cwt stronger and are $6-8/cwt higher than last year. The western Canadian calf index closed the week at $225.13/cwt. Alberta weekly auction volumes totaled just over 26,000 head, 5,000 head larger than last year. Canadian feeder cattle exports to the U.S. for the week ending April 16^th totaled 3,120 head.

Alberta D2 cows traded fully steady last week, and live trade was reported from $95-120/cwt, and D3 cows averaged $94.25/cwt. Butcher bulls traded $3/cwt higher to average $123.75/cwt and live trade was reported from $105-145/cwt. Canadian butcher bull exports to the U.S. for the week ending April 16^th totaled 466 head, 4% larger than the same week last year.

Bull.

• Based off the five-year average, Alberta fed cash to futures basis historically strengthen from April to May.
• Retailers and food service sector should be covering their beef need for Mother’s Day and Memorial Day.
• Over the past eight trading sessions, the Canadian dollar has dropped over 200 basis points.

Bear.

• Last week, U.S. Choice loin prices were down over $20/cwt.
• For the end of March, U.S. beef in cold storage is historically large.
• Week over week, U.S. pork cutout values slipped 3% and are below last year.

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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