For the week ending August 31, Western Canadian feeder cattle prices were relatively unchanged compared to seven days earlier. Finishing feedlots are exuding a cautious sentiment. While order buyers had a full deck, there were upside limits. Pen-sized strings of quality yearlings traded at a premium to average values. Alberta packers were buying fed cattle on a dressed basis in the range of $408-$413/cwt, down $5-$7/cwt from last week. Feeding margins are moving into red ink on current pen close-outs. It appears that steam has come off the calf market as more supplies come available. The calf market appears to be incorporating a risk discount given the weaker tone in the deferred live cattle futures.
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In Central Alberta, a smaller group of mixed big frame steers off grass just over 1,000 pounds apparently sold for $316/cwt in the ring. North of Saskatoon, a larger group of Charolais blended heifers off grass weighing 960 pounds sold for $311/cwt fob farm. Northeast of Calgary, Simmental based steers off grass weighing 940 pounds apparently sold for $326/cwt. South of Edmonton, a larger group of Angus based steers straight of pasture measured at 830 pounds reached up to $365/cwt. This was a premium for larger group of top quality genetics. In Lloydminster, tan heifers off grass averaging 800 pounds were valued at $357/cwt.
In Southern Alberta, black steers off grass weighing just over 700 pounds were quoted at $370/cwt. In Beaverlodge, a dozen Angus mixed yearling heifers around 740 pounds supposedly traded for $340. In Central Alberta, black steers backgrounded in the lot last winter and then placed on grass this past summer, weighing 720 pounds notched the board at $395.
Northeast of Calgary, black Limousin mixed, weaned steers, coming from green thick pastures weighing 615 pounds reportedly settled at $415/cwt fob farm. In Central Alberta, mixed heifers off grass averaging 662 pounds were quoted at $357. South of Calgary, tan weaned heifers on the card at 605 pounds were valued at $371/cwt fob feedlot.
In Central Saskatchewan, a double pair of tan steers weighing just over 500 pounds were quoted at $465. In Southern Alberta, a handful of black steers weighing 515 apparently traded for $440. In Westlock, a small group of Simmental based 400-pound steers supposedly sold for $465.
Statistics Canada estimated Canadian barley production at 7.5 million tonnes, down from last year’s crop of 8.9 million tonnes. This was considered bullish for barley prices. The U.S. Federal Reserve and the Bank of Canada will likely lower their key benchmark rate at the next meetings due to rising unemployment. If these Central Bankers are worried about rising unemployment, cattle producers should also be concerned higher unemployment causing beef demand to decrease.
