Alberta’s cattle market demonstrated a mixed but resilient performance this past week. While fed cattle prices experienced a modest dip, they held at historically strong levels, and auction volumes surged to decade highs. This dynamic reflects underlying strength in demand coupled with shifting supply patterns. Key takeaways include robust pricing for fed and feeder cattle, unprecedented levels of electronic sales, and a notable decrease in heifer slaughter impacting supply.
Contents
Alberta Fed Cattle Prices Remain Robust
Alberta fed cattle prices saw a slight pullback over the last two weeks, yet they continue to trade at exceptionally strong levels historically. Basis levels also showed strengthening. Fed prices closed the week in the high $290s per hundredweight (cwt). Dressed sales were reported ranging from $498.00 to $503.00/cwt delivered. Buying interest came from all Western Canadian packers, while U.S. interest was notably quiet. Cattle traded were scheduled for delivery from immediately through the second half of July and into the first half of August. The persistence of high prices and strong basis suggests solid domestic demand is offsetting minor seasonal pressure.
Record Volumes Amid Lower Slaughter
Market activity was exceptionally high, with Alberta auction volumes reaching 20,883 head last week. This marks the third consecutive week setting new volume highs for the past decade. Electronic sales have been particularly strong, exceeding 20,000 head each month this year, except for April, when temporary tariff uncertainty paused activity. For the first half of 2025, electronic sales have hit an all-time record of 201,216 head, a significant 37% increase compared to the previous record set in 2023.
Despite these record volumes moving through auctions, Western Canadian fed slaughter for the week ending June 21st was just over 40,000 head, 5% below the same week last year. A major contributor to this lower slaughter number is a significant reduction in heifers entering the slaughter stream; year-to-date heifer slaughter is down 17% compared to last year. While high volumes indicate active selling, the lower heifer slaughter suggests a potential long-term impact on herd size and future supply.
Cattle gathered in a pen or pasture, representing the livestock supply discussed in the market report
Feeder and Cow Market Update
The feeder cattle market also showed strength. The Canfax average for feeder steers closed the week $4.04/cwt higher, while feeder heifers were up $1.51/cwt. Steers weighing between 550 and 850 pounds have returned to near record high price levels, with heifers in the same weight class trading only slightly below their historical peaks.
In the cow market, Alberta D2 cows averaged $226/cwt, softer by $4/cwt from the previous week. D3 cows averaged $210/cwt, trading $1.00/cwt lower. Despite this modest weekly softening, both D2 and D3 cow prices remain substantially higher than last year, up $38-$42/cwt. Feeder cows were $7/cwt softer, while butcher bulls traded $1/cwt stronger. Recent rainfall across parts of the Prairies arrived in time to help rejuvenate pastures and hay ground, which could influence future feed costs and market decisions.
Market Watch: Competing Signals
The current market presents a blend of bullish and bearish factors for observers to consider:
- Bullish Indicators:
- Record forward delivery sales are commanding a sizable premium over the current cash market, indicating optimism for future prices.
- Lower Western Canadian fed slaughter year-over-year suggests tighter supply dynamics in the short term.
- A stronger fed basis points to healthy local demand relative to futures prices.
- Bearish Indicators:
- Seasonally, the fed market often faces headwinds; in 17 out of the past 25 years, fed prices have declined from June to July.
- Canadian Prime/AAA grading percentages were reported at 70%, the lowest for the year, potentially impacting overall carcass value.
- Year-to-date feeder exports are only modestly above last year (1%), representing the smallest increase since January, which may limit export demand influence.
The juxtaposition of record auction volumes and lower slaughter numbers, alongside the blend of bullish and bearish signals, paints a complex picture of the current Canadian cattle market.
Conclusion: Navigating a Complex Market
The Canadian cattle market continues to operate at historically high price levels, supported by strong demand reflected in the robust basis and record auction volumes. However, seasonal patterns and specific supply details, like lower heifer slaughter and grading percentages, introduce factors that warrant careful monitoring. Producers and market participants should remain attentive to how these competing forces play out in the coming weeks. For more in-depth market trends and analysis, explore our recent reports on [Simulated Link: Beef Demand Forecasts] and [Simulated Link: Livestock Inventory Data].
