Compared to last week, western Canadian feeder cattle markets traded $3-$4 on either side of unchanged. Premium low-flesh yearlings were one off bids $15-$20 above average. Cattle buyers commented that there were larger volumes of fleshier yearlings. Cattle with heavier butter levels were discounted from our listed values by $5 to as much as $10. Feed grain prices remain elevated for old-crop positions and gains are costly. Backgrounders bragging about calves gaining three pounds a day cause finishing operators to sit on their hands. Demand for feeder cattle has improved as there is a large amount of bunk capacity available. Buyers shopping for grass cattle are stepping forward more aggressively given the limited supplies of feeders under 700 lbs.
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In central Alberta, larger-frame low-flesh mixed steers on silage diet (no grain) with full health records weighing 905 lbs. sold for $255. In southern Alberta, Simmental-based steers reported at 825 lbs. on light grain diet with controlled weight gain with full health data traded hands at $270. In the same region, larger-frame red mixed steers carrying a double layer of butter with unknown weight gains averaging 810 lbs. charted the board at $252. Northwest of Winnipeg, larger-frame low lean flesh red mixed steers weighing 820 lbs. went into the record books at $292.
In central Saskatchewan, Charolais-based steers at 700 lbs. were valued at $309; south of Edmonton, larger-frame medium-flesh Angus heifers reported at 690 lbs. were bid up to $282. North of Calgary, larger wide-frame, lean tan steers weighing 635 lbs. notched the charts at $343 and Angus-blended heifers with a scale report of 630 lbs. were pronounced sold at $305.
In Manitoba, a handful of black steers assessed at 560 lbs. loaded on the truck at $346. In southwestern Saskatchewan, medium- to larger-frame semi-weaned steers weighing 515 lbs. silenced the crowd at $362. Southeast of Calgary, Limousin mixed heifers averaging 511 lbs. were purchased for $330.
Alberta packers were buying fed cattle on a dressed basis in the range of $380-$382/cwt delivered, steady to $2/cwt higher than last week’s range of $378-$380. Using a 60 per cent grading, live prices would equate to $228-$229 delivered. Break-even pen closeouts are around $220. Statistics Canada’s four-month-old acreage survey had barley acres at 7.085 million, up only 40,000 acres from last year. Traders are expecting barley acres to come in at 7.5 million on the June survey. Lethbridge feedlot operators are expecting barley to drop below $300/tonne during harvest. This is $120/tonne below current 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.
