Compared to last week, western Canadian prices for yearlings over 800 lbs. were quoted steady to $4 higher; feeders between 600-800 lbs. were relatively unchanged while calves under 600 lbs. were $5-$10 higher. The market for calves under 600 lbs. was hard to define due to limited volumes. Alberta packers were buying fed cattle on a dressed basis in the range of $385-$387/cwt delivered, up a solid $5 from seven days earlier. Sales f.o.b. the feedlot in southern Alberta were reported at $230/cwt. Break-even pen closeouts are around $220/cwt. Positive feeding margins continue to underpin the feeder complex.
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This past week, finishing feedlots were once again aggressive on all weight categories. Ontario demand was noted on feeders in Manitoba and eastern Saskatchewan, with a premium lean on Limousin and Charolais blends. Despite the softer tone in deferred live cattle futures, the nearby feeder market didn’t miss a beat. Fleshier types were discounted but even these cattle were well bid. Overall volumes are declining in line with the seasonal tendency. The lower supplies contributed to the stronger tone.
In central Alberta, Angus-blended lower-flesh steers on light grain ration with full health data averaging 842 lbs. were quoted at $270. North of Calgary, a smaller group of fleshier Simmental blends weighing 840 lbs. were bid up to $256. Northwest of Winnipeg, larger-frame lower-flesh Charolais scaled at 855 lbs. dropped the gavel at $286. At the same sale, black Limousin mixed thinner steers weighing just under 785 lbs. charted fresh waters $294. In central Alberta, mixed steers scaled at 775 lbs. on silage diet traded hands at $268.
In southern Manitoba red mixed 735-lb. steers sold for $308; south of Edmonton, tan steers with a 715-lb. ticket were last quoted at $321.
Near Lethbridge, Angus heifers averaging 615 lbs. sold for $300; southeast of Calgary, tan steers weighing 640 lbs. were valued at $325. East of Saskatoon, Charolais-based steers weighing a shade over 500 lbs. watered eyes selling at $370 and similar-quality and -weight heifers silenced the crowed at $340.
A larger portion of Alberta has received less than 40 per cent of normal precipitation. Pastures are in poor condition. Smoky conditions in central Alberta may have set a negative tone for the market last week. Approximately 45 per cent of the Canadian calves born are in Alberta. This is a serious blow to the industry and may result in an abnormal marketing schedule for a large portion of feeder cattle.
— 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.
