For the week ending November 29, feeder cattle market reports from Manitoba had prices up $20-$40/cwt from week-ago levels. Prices in Saskatchewan and Alberta were up $10 to $20 on average. The market was hard to define this past week with a wide range prices across Western Canada for similar quality and weight cattle. If U.S. and Ontario buying interest was evident, the market could be taken to fresh all-time highs. There were larger auction barns that did not hold sales from November 22 to November 29 so the buying interest may have been more concentrated at centres where sales did occur. Lighter volumes were noted across the Prairies.
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On Friday, November 22, the U.S. halted the imports of Mexican feeder cattle after New World Screwworm was detected in cattle in southern Mexico. Speculation abounds over how long this will take to resolve but at this stage, traders and analysts view the import ban is indefinite. The U.S. imports about 1.2 million head of Mexican feeder cattle in a normal year. This is bullish news for nearby feeder cattle prices and deferred live cattle prices.
In central Alberta, lower flesh, larger frame tan steers weighing 937 pounds with full health data coming off a diet of hay and greenfeed apparently sold for $345. In the same region, a small package of black heifers averaging 921 lbs were valued at $310.
Northwest of Winnipeg, Charolais steers averaging 850 lbs carrying lower flesh levels traded for $378. North of Calgary, Charolais steers with medium to lower flesh levels weighing 845 lbs were quoted at $362. West of Edmonton, a smaller package of red mixed steers coming off cows and hay diet weighing 840 pounds were quoted at $345.
In Manitoba, red mixed steers larger frame steers carrying very light butter weighing just over 700 lbs traded for $409 and similar quality and breed heifers on the card at 670 lbs reportedly moved at $380. Northwest of Saskatoon, Simmental based steers weighing 675 lbs traded for $399 and black Angus based heifers weighing 675 lbs apparently sold for at $352.
North of Calgary, black mixed heifers scaled at 600 pounds were last bid at $397. Northwest of Winnipeg, mixed heifers weighing just under 600 pounds reached up to $427.
South of Edmonton, short-weaned Angus based steers on hay diet with full processing data weighing 523lbs set the bar at $472. In Central Saskatchewan, black unweaned steers evaluated at 510lbs were quoted at $520. In Southwest Manitoba, black steers averaging 510lbs traded for $525.
In Alberta and Saskatchewan, cattle on feed 150 days or longer are down 10 per cent from year-ago levels. The margin structure for the deferred positions looks more favorable which is also underpinning the feeder market.
— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.
