Western Canadian feeder cattle markets were $3/cwt lower to $6/cwt higher compared to seven days earlier in the week ending December 2.
Strength was noted in Manitoba and Saskatchewan while a softer tone was evident in Alberta. Once again, buyers shrugged off the weaker feeder cattle futures and the focus was on filling year-end orders. Alberta and Saskatchewan feedlots are carrying larger numbers but there appears to be sufficient bunk capacity available to sustain the price structure.
Larger supplies of calves under 600 pounds are on coming on the market, and feedlot operators believe that the yearling numbers will be down come March and April. Therefore, the major operations believe they have to buy these lighter calves now or they will be short on cattle later in spring. The weather has been conducive to bring in the lighter calves. Feed barley prices continue to grind lower which may be contributing factor. Ontario demand appears to have eased last week but with the lower supplies, the market remained firm. Ranchers and cow calf producers that wanted to sell cattle this fall have likely done so by this time year.
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West of Winnipeg, Angus-based steers carrying thin butter averaging 800 pounds reportedly sold for 330/cwt. Southeast of Saskatoon, Charolais based steers with medium to lower flesh weighing 830 pounds dropped the gavel at $324. In Central Alberta, short weaned mixed heifers with full health data on light barley and silage ration averaging 714 pounds dropped the gavel at $291. In the same region, Simmental Angus blended short weaned steers coming off hay diet on the card at 733 pounds traded for $329. North of Brandon, Angus semi-weaned steers carrying lighter butter weighing 740 pounds were valued at $344.
North of Saskatoon, a buyer report had black steers coming off mothers and hay diet weighing 650 pounds last bid at $345 and similar genetic and quality heifers on the card at 645 pounds silenced the crowd at $305. In St Rose du Lac Manitoba, the market report had 600 pound black and red mixed steers weighing 600 pounds tagged with a sale price of $358. South of Edmonton, black mixed steers weighing 600 pounds coming straight off their mothers with full processing data sold for $322.
In East Central Saskatchewan, Simmental blended short-weaned steers weighing 575 pounds apparently sold for $374. South of Edmonton, mixed steers with 60-day weaning period with full health records on the card at 530 pounds sold for $390. In Manitoba, tan bawling steers weighing just over 500 pounds sold for $405 and mixed heifers on the card at 500 pounds traded for $330.
Fed cattle in Southern Alberta were selling in the range of $223-$225/cwt fob feedlot. In the U.S., cattle on feed 150 days or more are above year-ago levels which is weighing on the U.S. and Alberta fed cattle markets.
— 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.
