Compared to last week, western Canadian feeder cattle markets traded $2-$3/cwt higher on average. Southern Alberta appeared to lead Western Canada. Prices in the Lethbridge area were up $8/cwt to as much as $15/cwt from week-ago levels. Major operations have liquidated a significant amount fed cattle and become more current with production. There was a surge of demand last week and the higher prices appeared to attract additional buying interest. Feedlots in the Lethbridge area focused on local backgrounded cattle with controlled weight gains. Fleshier yearlings were discounted heavily because the cost per pound gain is at historical highs. U.S. and Ontario demand took second stage as the feeder cattle futures were under pressure. Limited gains were noted in Manitoba and Saskatchewan. Weather conditions have been optimal for bringing in replacements. Cow-calf producers who were holding onto calves are now starting to liquidate. Above-average volumes were reported at most auction barns last week. Alberta packers were buying fed cattle on a dressed basis at $317/cwt, up $5/cwt from last week.
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In central Alberta, larger-frame Simmental steers averaging 975 lbs. carrying medium to lower flesh levels with full health data on light grain ration were valued at $233/cwt. East of Edmonton, a small group of Charolais-based steers weighing 845 lbs. were quoted at $244/cwt. Near Lethbridge, a larger group of Angus-based steers averaging just over 800 lbs. with medium flesh on controlled weight gain with full health data traded at $256/cwt. North of Lethbridge, larger-frame Simmental heifers carrying lighter butter averaging 845 lbs. were quoted at $230/cwt.
Near Lethbridge, backgrounded black steers weighing a shade under 700 lbs. sold for $288/cwt and backgrounded tan heifers averaging 667 lbs. dropped the gavel at $250/cwt. North of Red Deer, tan steers on light grain ration averaging 715 lbs. with full health records silenced the crowd at $265/cwt. Northwest of Winnipeg, Red Angus-blended steers averaging 710 lbs. notched the charts at $274/cwt and Charolais-based heifers averaging 695 lbs. were valued at $228.
Near Lethbridge, a small group of backgrounded black steers weighing 580 lbs. were bid up to $312/cwt and tan backgrounded heifers scaling at 566 lbs. were purchased for $274/cwt. East of Edmonton, a group of 40 Angus semi-weaned steers averaging 540 lbs. were valued at $306/cwt. North of Brandon, a small group of Charolais steers recorded at 485 lbs. dropped the gavel at $302/cwt and similar-quality heifers averaging 552 lbs. charted course at $255/cwt. In central Alberta, a small group of red steers weighing 482 lbs. traded for $334/cwt. All feedlots are short on manpower. The market is telling producers to wean, vaccinate and have the calves on a light grain ration before bringing them to town.
— 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.
