Western Canadian feeder cattle markets were unchanged, to as much as $10 lower compared to last week.
Demand for heifers was suffering last week. A weaker tone was noted in the Eastern prairie regions as Ontario demand appeared to evaporate last week. Alberta packers were buying fed cattle on a dressed basis in the range of $368-$370/cwt, down $7-$8 from last week.
Feedlots in Alberta and Saskatchewan are becoming backed up with heavier cattle. This is setting a negative tone for overall feed complex. Feeding margins on unhedged cattle will be negative for the first quarter of 2024 and the equity drain could potentially extend into June.
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There was steady demand for mid-weight and light-weight calves although it was clean up shopping list with limited pen space available. Early season grasser buying supported 500 pounders.
In Central Alberta, a smaller group of larger frame Angus Charolais blend 50-day weaned steers with full processing data weighing just over 900 pounds sold for $286. In the same region Simmental based steer calves on 40 day weaning with full health records on hay diet at 810 pounds dropped the gavel at $297. North of Calgary, tan mixed short-weaned heifers on the card at 810 pounds apparently traded for $277.
In Southern Manitoba, red white face steers with unknown weaning data, averaging 760 pounds, reportedly sold for $320. In Central Saskatchewan, Angus based, short-weaned steers with some fleshier types weighing 725 pounds sold for $328. In the Calgary region, Charolais based steers weighing a shade over 700 pounds with 40-50 day weaning period on hay/greenfeed and light grain diet reportedly dropped the gavel at $335.
In Manitoba, Angus based weaned steers weighing 630 pounds supposedly traded for $361. In South-Central Saskatchewan, Charolais based bawling steers on the card at 628 pounds apparently sold for $332.
Northwest of Winnipeg, an auction market report had a small group of black steers weighing 525 pounds priced at $360 and mixed heifers on the card at 500 pounds were quoted at $330. East of Edmonton, mixed run of the mill steers weighing 525 pounds supposedly moved through the ring at $390. In Southern Alberta, a medium sized group of black Limousin blended steers weighing 514 pounds were valued at $405.
Restaurant traffic is running similar to year-ago levels in Canada and the U.S. The consumer appears to be in better financial shape than earlier anticipated. The Bank of Canada and the U.S. Federal Reserve have brought down inflation without causing massive layoffs or a major recession. Gas prices are trending lower and bond yields are declining which will alleviate major inflationary pressures
— 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.
