Compared to last week, western Canadian feeder cattle markets traded $3-$4 on either side of unchanged. Certain auction markets did not have sales due to the shortened holiday week. Adverse weather also shuttered some sales on Wednesday and Thursday in the eastern Prairie region. Southern Alberta feedlots are contending with poor pen conditions which may have tempered the upside.
For the most part, strong demand was noted across all weight categories, with limited slippage on off-grade, smaller-frame or fleshier animals. Noted buying interest was once again evident for grassers in the 600- to 800-lb. weight range. Cattle suitable for grass have jumped $10-$15 over the past three weeks. It appears yearling supplies in the fall period will be down sharply from year-ago levels. Calf volumes were limited. Quality packages under 550 lbs. were few and far between.
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In central Alberta, a larger group of mixed steers on silage diet with full health records averaging 925 lbs. dropped the gavel at $242. North of Red Deer, lower-flesh heifers averaging 925 lbs. with full health data were valued at $225. In west-central Saskatchewan, medium- to lower-flesh, larger-frame Simmental blended steers weighing 840 lbs. notched the board at $271. At the same sale, lower-flesh tan heifers with a scale weight of 825 lbs. silenced the crowd at $262.
East of Saskatoon, larger-frame black steers averaging 710 lbs. were bid up to $298 and similar-quality heifers in the ring at 730 lbs. were quoted at $262. Southeast of Calgary, Angus-based steers carrying light butter with mass of 730 lbs. charted course at $285 while Hereford-based heifers averaging 730 lbs. were valued at $255.
West of Edmonton, black Angus weaned steers on light grain diet with a scale weight just under 600 lbs. sold for $330. South of Edmonton, tan steers weighing 645 lbs. set the bar at $312. North of Calgary, mixed heifers weighing 620 lbs. sold for $290.
In central Saskatchewan, Charolais steers averaging 560 lbs. were bid up to $335 and black heifers coming in at 550 lbs. were last bid at $310. In Manitoba, larger-frame red steers weighing 535 lbs. reached up to $330 and black heifers averaging 530 lbs. were valued at $285.
Alberta packers were buying fed cattle on a dressed basis in the range of $360-$365 delivered. Using a 60 per cent grading, live values would be equivalent to $219 delivered, which is a fresh historical high. Pen closeouts over the past couple of weeks have shown a small margin. However, in deferred positions, the margin structure barely covers feed costs, which is limiting the upside for yearling prices. Ideas are barley and corn will be considerably cheaper next fall, which is contributing to stronger prices for grass cattle. The function of the feeder market is to encourage expansion. In southern Alberta, replacement heifers are reaching over $2,400 and quality, premium, genetic cow-calf pairs are striking $3,800.
— 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.
