Compared to last week, western Canadian feeder cattle prices traded $3-$4 on either side of unchanged.
Small groups of various quality characterized sale volumes. There were a few packages of backgrounded yearlings that sold at decent levels. Finishing feedlots were fairly aggressive on groups in the 700- to 800-lb. category. Higher flesh levels have become more prevalent, which appeared to step the upside. Temperatures have also been quite volatile, causing the larger operations to focus on cattle within short-range logistics. Steers and heifers in the 400- to 600-lb. category were very strong. There may have been some year-end buying driving the market but these lighter calves were well bid by major buyers. These cattle are going into strong hands and they are not coming back on the market next spring as backgrounded cattle. The weaker Canadian dollar was supportive to the overall cattle complex. Alberta packers were buying fed cattle on a dressed basis in the range of $275-$278 delivered, up $2-$4 from last week’s trade.
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Northwest of Winnipeg, a small group of black larger-frame medium-flesh steers averaging 920 lbs. were valued at $192 and mixed medium-frame heifers with thicker butter weighing 850 lbs. were quoted at $176. South of Edmonton, larger-frame Charolais-based steers with full health records on light grain ration weighing 850 lbs. dropped the gavel at $189. Mixed heifers with medium flesh with full health papers averaging 845 lbs. were purchased for $181.
North of Lethbridge, larger-frame medium-butter Simmental-blended steers averaging 728 lbs. were quoted at $197 landed in the feedlot; similar-quality heifers weighing 710 lbs. were valued at $173 delivered to the feedyard.
In east-central Saskatchewan, Angus-based steers straight off their mothers averaging 506 lbs. were quoted at $238. In northeastern Manitoba, black steers weighing 450 lbs. sold for a whopping $256. In the Lethbridge area, tan steers averaging 410 lbs. were quoted at $242 and mixed heifers weighing 480 lbs. were valued at $189.
New-crop feed barley has traded at $340 per tonne delivered southern Alberta, which is $100 per tonne below current values. Last week, China bought Ukrainian and French feed barley for new-crop positions at an equivalent price of $275 per tonne in central Saskatchewan. Weaker feed grain prices for new-crop positions are setting a positive tone for calves that will come on the fed market in the latter half of 2022.
— 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.
