For the week ending March 30, Western Canadian feeder cattle markets traded $4 to $6 higher on average. Fleshier backgrounded yearlings were relatively unchanged. Buyers were fairly cautious on backgrounded heifers with some packages actually softer than seven days earlier. Larger strings of quality genetic, low flesh steers were up $6 to as much as $10 in some cases. Weaned, premium, calves were up a solid $5 to $6 on average.
Weather conditions improved over the past week and the risk sentiment appeared to increase. Finishing feedlots were aggressive across all weight categories with noted buying interest lifting steers under 600 pounds. The September feeder cattle futures continue to trade at a $12 premium over the nearby May contract which enhancing demand on lighter weight calves. Yearling supplies will be tight on both sides of the border come fall and feedlot managers are anxious to secure ownership.
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In Central Alberta, a larger string of healthy frame Angus based steers weighing 925 pounds carrying medium to lower flesh on light grain and silage diet with full processing records apparently sold for $325. In the same region, black mixed heifers carrying medium butter on light grain diet with health data averaging 800 pounds supposedly traded for $304. On the Lloydminster auction report, there was a larger group of 810 pound Simmental steers valued at $353 and another similar quality group, averaging a hair under 800 pounds recorded at $360.
South of Calgary, a larger group of weaned Limousin blended lower flesh steers on forage diet weighing 705 pounds were valued at $386. South of Edmonton, weaned, Charolais based heifers on silage diet averaging 645 pounds were recorded at $375. In the same region, black mixed, weaned steers around 630 pounds in light grain and silage diet with full vaccinations reportedly sold for $421. In Southern Manitoba, buyer’s comments had mixed, weaned steers just over 600 pounds last bid at $418 while mixed heifers on the card at 610 pounds silenced the crowd at $363.
Southeast of Saskatoon, Charolais based, weaned steers weighing just over 500 pounds apparently traded for $470 and similar quality heifers at 490 pounds moved at $415. In Southern Alberta, a smaller group of mixed red steers weighing 450 pounds were valued at $491.
Alberta packers were buying fed cattle at $400/cwt delivered this past week, up $10/cwt from seven days earlier. Feeding margins are improving but pen closeouts are still underwater. Many auction barns were closed or had minimal numbers due to the Easter weekend.
U.S. farmers are expected to plant 90.0 million acres of corn this spring, according to the USDA. This is down 4.6 million acres from last year and is somewhat bullish for the feed grain complex.
— 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.
