Western Canadian feeder cattle prices were relatively unchanged compared to the week earlier for the week ending August 10.
Larger packages of quality yearlings off grass experienced very strong buying interest with premium genetics trading $2 to $6 above week ago levels. Flesh conditions are excellent allowing finishing lots to pencil in above-average feed conversions.
Overall, the calf market appeared to be more sensitive to the weakness in the deferred live cattle futures while buyers of yearlings were focused on securing ownership. Ideas are that yearling supplies are down from year-ago levels and scarcity factor is driving the bullish enthusiasm.
Read Also
U.S. grains: Soybeans retreat after rally, wheat holds at three-month high
U.S. soybean futures fell on Tuesday, retreating from a 16-month high hit a day earlier, as traders awaited Chinese purchases of U.S. cargoes following last week’s trade truce agreed by the world’s two largest economies.
Alberta finishing lots set the price structure. U.S. buyers were notably absent as markets south of the border faltered. Ontario interest will step forward once cattle from Manitoba and Eastern Saskatchewan come on stream next week.
In Central Alberta, a pen-sized package of larger frame black mixed steers straight off pasture, averaging 1070 pounds, with full processing data traded for $318. North of Calgary, a pen-sized group of large frame Simmental-based steers, weighing 925 pounds, reportedly sold for $342. South of Edmonton, a larger package of mixed heifers with Angus features, weighing 885 pounds, supposedly traded for $316.
In the Calgary area, a larger group of Charolais blended steers off grass, weighing 810 pounds, notched the board at $370. In Central Alberta, a smaller package of mixed heifers weighing 837 pounds off grass were last bid at $333.
In Central Alberta, a handful of Limousin blended heifers off grass, weighing 750 pounds, traded for $362. Southeast of of Calgary a smaller group of black steers straight off pasture averaging 720 pounds were quoted at $395.
In Central Alberta, mixed run-off-the-mill steers scaled at 635 pounds passed through the ring at $422. In Southern Alberta, a small package of mixed steers around 540 pounds were valued at $478. In the Calgary region, steers weighing 500-550 pounds were quoted from $490 to $516 and heifers weighing 500-550 pounds were trading in the range of $410-$433.
The calf market was hard to define but values were slightly softer compared to last week.
The unemployment rate on both sides of the border is expected to increase over the next four to six months which will result in lower consumer spending and weaker beef demand.
— 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.
