For the week ending September 7, Western Canadian yearling markets traded steady to $5/cwt higher in Alberta but steady to $6/cwt lower in Saskatchewan and Manitoba compared to seven days earlier.
Major feedlots in Alberta appear to be focusing on local cattle. The calf market is in price discovery mode with prices quoted $10/cwt higher to $10/cwt lower.
Market reports from northern Saskatchewan had 500 pound quality genetic steers trading from $460-$475/cwt while central Alberta summaries had similar cattle priced in the range of $430-$450/cwt. Weakness in the deferred live cattle futures resulted in a cautious sentiment amongst buyers. Alberta packers were buying fed cattle on a dressed basis in the range of $406-$410/cwt for late September to October delivery. This compares to dressed values at $425-$428/cwt in mid August.
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In central Alberta, a pen-sized package of 1,000 pound mixed steers straight off grass averaging sold for $320. In the Calgary region, Angus blended heifers averaging 1,000 pounds off pasture were valued at $300 fob ranch and south of Edmonton, mixed 1,000 pound grass heifers supposedly traded for $291.
Northwest of Winnipeg, Charolais blended steers averaging 880 pounds apparently notched the board at $335. At the same sale, Simmental based heifers weighing 825 pounds were last bid at $312. Heifers were quite variable because flesh levels can be deceiving in some cases.
In central Alberta, a pen-sized group of larger frame, black mixed steers off pasture, on the card at 800 pounds, reportedly sold for $360. However, south of Edmonton, a double hand of mixed steers off the ranch averaging 825 pounds dropped the gavel at $335.
Northwest of Winnipeg, a handful of Charolais steers just under 700 pounds reportedly moved through the ring at $379. In the Saskatoon region, a smaller package of Charolais based steers weighing just over 600 pounds were last bid at $415. West of Edmonton, a handful of black mixed heifers weighing 716 pounds traded for $344 and 600 pound Simmental based steers supposedly sold for $395. Northwest of Winnipeg, a small package of 600 pound black and red heifers sold for $349.
In central Saskatchewan, short-weaned mixed steers averaging 550 pounds apparently traded for $413. In Central Alberta, weaned mixed steers, weighing 525 pounds, on light grain and forage diet, with full health data sold for $432. In southeast Saskatchewan, a small group of Simmental mixed steers off their mothers, weighing 525 pounds, were valued at $390.
The Alberta barley crop was lower than expected and higher feed grain prices are expected over the winter. The U.S. and Canadian jobs reports on Friday were disappointing and cattle feeders are worried about lower beef demand due to rising unemployment levels.
— 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.
