For the week ending January 25, Western Canadian feeder cattle markets traded $$3-$6/cwt on either side of unchanged compared to seven days earlier. Higher quality genetics and lower flesh replacements were slightly firmer; however, feedlot operators incorporated the appropriate discounts on fleshier types and lower efficiency, smaller frame animals.
Once again, stronger demand from Ontario surfaced in the eastern Prairie regions. This resulted in a small premium over Alberta markets. Despite the adverse temperatures in Manitoba, there was no slippage. Corn in Ontario was trading for $240-$255/tonne while barley in Lethbridge was valued at $310/tonne last week. Alberta feedlot operators appear to be more concerned about potential U.S. tariffs compared to the Ontario cattle feeders. This may have also stemmed Alberta buying interest on feeders over 700 pounds. The market for lighter calves was relatively flat across the Prairies.
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In central Alberta, larger frame lower flesh mixed steers on light grain and silage diet with full processing records averaging 920 pounds sold for $361. In the same region, larger frame Charolais based heifers weighing 915 pounds traded for $346. At the Lloydminster sale, larger frame Simmental cross steers with thinner flesh evaluated at 860 pounds were last bid at $389. South of Edmonton, larger frame tan heifers with medium to lower flesh levels weighing 850 pounds were quoted at $344.
At the Ste. Rose Auction in Manitoba, red medium frame steers weighing 807 pounds notched the board at $409. South of Edmonton, Simmental blended steers on light grain and silage diet with full processing records measured at 803 pounds were let out of the ring at $387.
In southwest Manitoba, larger frame Angus based steers weighing 711 pounds silenced the crowd at $440 and black heifers on the card at 715 pounds were quoted at $380. In central Saskatchewan, a smaller package of Charolais based steers averaging just over 600 pounds supposedly traded for $498. In the Calgary region, black Limousin based heifers with a mean weight of 615 pounds reportedly sold for $426.
On the Killarney Auction Market report, black steers weighing 520 pounds were valued at $532. South of Edmonton, Simmental Angus cross steers weighing 505 pounds apparently sold for $539. At the Westlock sale, a smaller group of mixed heifers weighing 475 pounds reportedly moved at $491.
On Thursday, January 23, Alberta packers were buying fed cattle on a dressed basis from $445/cwt to $450/cwt which was $5-$8/cwt higher than seven days earlier. Using a 60 per cent grading, this equates to a live price of 267-$270/cwt delivered.
During the week ending January 18, U.S. packers were buying cattle on a live basis at $275/cwt fob feedlot; however, last week, demand from south of the border was quieter due to tariff uncertainty. Nebraska fed cattle traded on a dressed basis at US$329-US$330/cwt, up US$6-US$8/cwt from a week earlier.
— 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.
