For the week ending April 19, Western Canadian feeder cattle markets traded $2 to $3 above week-ago levels. Many auction barns did not have sales due to Good Friday but sale volumes were also smaller at active locations.
Alberta packers have insinuated that limited fed cattle supplies in the fall will significantly curtail the slaughter pace. Therefore, finishing feedlots were anxious to secure ownership across all weight categories. Buyers noted limited slippage on off grades and small packages under five head. There was a surprising number of cattle producers shopping for grassers as 500 pound steers eye the psychological $600 level. Some feedlots are shopping around themselves to backgrounding lots and asking “what do you want for these cattle?” They may pay slightly above market value, but $3-$5 is not relevant in this type of market.
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At a backgrounding lot northeast Saskatchewan, a pen-sized group of 1,000 pound mixed steers on light grain, pellet and silage diet with full pre-conditioning were valued at $368/cwt fob farm.
At the Ponoka sale, a smaller package of mixed steers on common backgrounding ration weighing 923 pounds sold for $375.
At the Vermillion sale, feature sales included a smaller package of Charolais steers with a mean weight of 870 pounds trading for $394; the sale report also had black Angus steers weighing 800 pounds selling for $415. In the Calgary region, larger frame Charolais cross heifers with medium flesh around 875 pounds were valued at $368. At the Ponoka sale, a larger group of lower flesh tan heifers weighing 783 pounds on barley, pea silage and canola meal diet with full processing records were last bid at $402.
In southern Saskatchewan, black larger frame steers evaluated at 710 pounds carrying some lighter butter apparently traded for $445. The Ponoka market report had black mixed steers on light grain and silage diet averaging 709 pounds trading for $465. At the Vermillion sale, a small package of Simmental blended, thinner heifers weighing a shade under 700 pounds sold for $425.
In central Saskatchewan, black wide frame steers on the card at 612 pounds notched the board at $502 and Limousin cross heifers scaled 608 pounds supposedly moved at $455. The Vermillion sale report had a pair of tan heifers weighing 607 pounds selling for $485. At the Ponoka sale, mixed weaned steers with a mean weight of 514 pounds dropped the gavel at $588 and tan weaned heifers evaluated at 540 pounds silencing the crowd at $514.
Alberta packers were buying fed cattle on a dressed basis at $475/cwt delivered, unchanged from last week. In Alberta and Saskatchewan, cattle on feed 150 days or longer as of March 1 totaled 46,000 head. This is low. However, cattle on feed 150 days or longer as of April 1 were 265,693 head. This data now includes the large November placement number.
The fed cattle market is topping out but we don’t believe lower live cattle prices will have much of an effect on the feeder market.
