For the week ending August 2, Western Canadian feeder cattle markets traded steady to as much as $10 higher. Quality yearling packages off grass were up as much as $15 in some cases.
Prices for similar weight cattle were quite variable across the Prairies, which made the market hard to define. The market appears to be in price discovery mode for the grass yearling market. Alberta packers were buying fed cattle on a dressed basis at $505/cwt, steady to $5 higher than last week. Using a 60 per cent grading this equates to a live price of $303/cwt.
Read Also
U.S. livestock: Cattle futures surge, hogs up
Chicago cattle futures surged on Tuesday to sit just under highs. Hog contracts also made gains.
Packer bids fob feedlot in Southern Alberta were reported from $297/cwt to $299/cwt. Breakeven pen-closeouts for August are in the range of $275-$285/cwt. Strong feedlot margins continue to underpin the feeder complex.
In southern Manitoba, the DLMS market report had a pen-sized group of medium to larger frame, Angus blended steers, weighing 1025 pounds, off grass diet selling for $407/cwt fob ranch. Another feature on the report included a pen-sized package of mixed steers off grass carrying medium to lower flesh levels with a mean weight of 935 pounds selling for $457/cwt fob ranch near Fairholm, Saskatchewan.
In southern Alberta, the Perlich Bros. market report had a pen-sized group of 930-pound large-frame, Angus based heifers with a touch of exotic features carrying light to medium flesh, coming straight off pasture trading for $419/cwt fob ranch.
The Ponoka Market report stated that a handful of mixed steers, carrying lighter butter, coming straight off pasture averaging 840 pounds, with full processing records moving at $465/cwt through the ring. In southern Alberta, a smaller package of Charolais cross steers off pasture weighing just over 800 pounds carrying lighter flesh reportedly traded for $501/cwt.
The Perlich Bros. report had Angus based, young, smaller frame heifers, weighing 781 pounds off grass selling for $464/cwt.
Calf volumes were limited last week. In southern Alberta, larger frame, Simmental cross steer calves weighing 710 pounds reportedly sold for $551/cwt. The report from the Westlock market had a nine-pack of red Angus 557-pound steers off grass, naturally raised selling for $565/cwt. The DLMS summary had a couple packages of higher quality steer calves averaging 500 pounds trading for $660/cwt fob ranch at various locations in Saskatchewan.
The live and feeder cattle futures sold off heavily on Thursday, July 31, largely due to speculative fund liquidation. Higher than expected U.S. inflation data along with the implementation of tariffs by the Trump Administration set the feeder cattle futures on the defensive. There’s uncertainty regarding beef demand moving forward. Wholesale choice beef was trading at US$361/cwt on Thursday, July 31, down from the June peak of US$392/cwt
