Compared to last week, western Canadian feeder cattle markets traded steady to $4 higher on average. Certain pockets in Manitoba and eastern Saskatchewan had steer calves up $4-$8 from week-ago levels. Alberta values were relatively unchanged from seven days earlier on all weight categories. Steady demand was noted from Ontario feedlots for calves while Alberta feedlots focused on backgrounded cattle. Larger groups of backgrounded yearlings were available and these packages were well bid. June and August live cattle futures jumped $2-$4 and this was the main factor driving 700-plus-lb. replacements. Alberta feedlots once again focused on local cattle which set a premium in southern Alberta.
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Northwest of Winnipeg, larger-frame medium-flesh black steers weighing 905 lbs. traded for $232 and Charolais-based heifers averaging 840 lbs. dropped the gavel at $217. East of Saskatoon, exotic steers on record at 865 lbs. with medium to lower flesh level were bid up to $246. South of Edmonton, a larger group of medium- to lower-flesh larger-frame mixed steers weighing 942 lbs. on light grain diet with full health records sold for $236. In the Red Deer area, Simmental-based, vaccinated heifers averaging 810 lbs. on light grain diet were valued at $221. Fleshier cattle were discounted accordingly. Buyers believe three or four fleshier animals show the true colours of the group. Therefore, separate these cattle and sell them separately.
In central Alberta, larger-frame lower flesh red Angus-blended steers which were scaled at 733 lbs. silenced the crowed at $267 and similar-quality heifers weighing 720 lbs. were bid up to $229. In Yorkton, Angus-blended steers weighing 636 lbs. were valued at $298. North of Brandon, red run-of-the-mill steers averaging 600 lbs. were quoted at $285 and similar weight and quality heifers set the charts at $243.
Northwest of Winnipeg, Simmental mixed steers weighing 560 lbs. reached up to $296. North of Calgary, a small group of larger-frame short-weaned mixed steers averaging 530 lbs. were bid up to $310 and Charolais-based heifers averaging 550 lbs. silenced the crowd at $260. In central Saskatchewan, black steers weighing just over 500 lbs. reportedly sold for $322. Light-weight calves are being led by December live cattle futures, which made fresh contract highs over $166 last week. This is a stone’s throw from the October 2014 record high of $170.
— 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.
