Western Canadian feeder cattle markets were quoted $5 lower to $5 higher on average in the week ending June 15. However, quality packages of yearlings traded $5 to as much as $10 above week-ago levels.
Feedlots have been liquidating larger supplies of finished cattle and pen closeouts have been in positive territory. Open demand is increasing while packages of quality replacements were in short supply. Most auction barns reported sales volume between 200 and 700 head.
Finishing feedlots in Alberta set the price structure across Western Canada. Pen conditions have improved in Southern Alberta and buying interest from major operations was evident on all weight categories. Grass conditions remain favorable and there were orders for sub-par cattle for pasture purposes.
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Ontario demand was absent as operations become backed up with market-ready supplies due to the ongoing strike at a Guelph Cargill packing plant. The southern Alberta 10-15 day weather forecast calls for moderate temperatures with the absence of extreme heat. There was no Lethbridge premium last week as the market fairly flat across the prairies.
South of Edmonton, lower flesh, Charolais steers weighing 920 pounds, on light grain and silage diet, with full health records dropped the gavel at $332. In the Red Deer region, larger frame, mixed black steers on forage diet, with full processing data, around 835 pounds reached up to $355. North of Brandon, a small group of lower flesh Charolais heifers weighing 870 pounds reportedly traded for $319. In east-central Alberta, larger frame Angus steers off grass and forage diet, weighing just under 800 pounds were last bid at $374. South of Edmonton, a smaller package of tan steers off grass, with full processing records apparently touched $379.
In central Alberta, mixed medium frame steers on forage and supplemental diet, averaging 730 pounds supposedly moved at $404. South of Calgary, a smaller group of Angus blended heifers just over 700 pounds reportedly sold for $345.
In Central Saskatchewan, a handful of red Simmental based 620-pound, weaned steers off hay and grass apparently sold for $445. Southeast of Saskatoon, black, weaned heifers scaled at 595 pounds reported sold for $362.
Northwest of Winnipeg, a small group of wider frame black mixed, short-weaned, steers just over 600 pounds dropped the gavel $433. West of Edmonton, black mixed, weaned heifers on greenfeed diet, weighing 571 pounds traded for $370. At the same sale, Angus based steers coming off cows and grass, with full health data, measured at 448 pounds reached up to $520.
It’s interesting to note that good cow-calf pairs are trading in the range of $5,000-$5,300. Alberta packers were buying fed cattle on a dressed basis at $434-$438/cwt, $2-$4 lower than last week. However, U.S. packer bids in Nebraska were reported at US$305-US$306/cwt, up $4-$5/cwt from seven days earlier. Feedlots are anticipating a sharp year-over-year decline in market-ready fed cattle supplies in the late summer and fall period on both sides of the border. The USDA WASDE report had U.S. fourth quarter beef production down 200 million pounds from last year.
— 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.
