For the week ending June 17, western Canadian feeder cattle prices were quoted $2-$5/cwt higher on average compared to seven days earlier. However, larger packages of quality yearlings traded $8-$10/cwt above week-ago levels.
The market was hard to define because available supplies are dwindling at this time of year. The quality of cattle was extremely variable and discounts for fleshier stragglers ballooned last week. Alberta packers were buying fed cattle on a dressed basis at $415/cwt delivered, which was a fresh record high. Using a 60 per cent grading, live values would equate to $249/cwt delivered. The nearby cash market has divorced from the future market activity. Buyers shrugged off the lower feeder cattle futures last week.
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In central Alberta, a smaller group of mixed lower-flesh steers on forage diet with full health records weighing 930 lbs. sold for $288. North of Red Deer, black mixed larger-frame, minimal butter-carrying steers on forage diet with processing data averaging 825 lbs. traded at the psychological $300 level. In the same region, mixed heifers with thin frames on forage diet recorded at 825 lbs. dropped the gavel at $281.
Near Lethbridge, medium- to larger-frame black Angus-based steers weighing 720 lbs. were quoted at $326. South of Calgary, a smaller group of Simmental-blended heifers weighing 755 lbs. were quoted at $273.
In southern Manitoba, smaller groups of mixed steers weighing 600-625 lbs. traded in the range of $355-$365 while similar-weight heifers were quoted from $300-$310. North of Calgary, black mixed steers weighing 615 lbs. were valued at $352 and a small group of tan heifers weighing 605 lbs. traded for $310.
There was a wide price variance on calves under 600 lbs. last week due to limited numbers and variable quality. Southeast of Saskatoon, a smaller group of tan mixed steers recorded at 515 lbs. were valued at $405. In central Alberta, mixed heifers weighing 555 lbs. were quoted at $295.
From June 11 to 18, central Alberta received 40-60 mm of rain. The barley crop is made and above-average yields are expected. These rains contributed to stronger buying enthusiasm for replacements. Many auction markets had limited numbers and summer schedules are in effect at most locations.
— 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.
