Compared to last week, Western Canadian feeder cattle prices were quoted $3-$4/cwt on either side of unchanged. Yearlings were well bid but order buyers had limits on how far they could push the market. Calves were slightly firmer with larger packages of premium genetics trading on the higher end of the range; however, regular run-of-the-mill strings of were a bit softer.
Finishing feedlots are carrying similar numbers to last year with many operations backed up with market-ready supplies. Demand for replacements is limited at this times feeding margins continue to struggle in red. The crowd for grass quality cattle was subdued as some finishing operators were on the sidelines. However, Ontario buying interest was noted for Manitoba calves.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Southern Alberta buyers backed away from “care intense” feeders due to the snowfall forecast earlier in the week. Adverse weather conditions materialized on Thursday. Logistical issues and health risks resulted in a minor risk discount in certain pockets.
Northwest of Saskatoon, a larger package of 925 pound Angus mixed steers with full health records and controlled weight gain on light grain and silage diet traded for $313 fob farm. South of Edmonton, medium to larger frame mixed steers with lighter butter around 880 pounds on silage diet with processing data included, reached $320 in the ring. In southern Alberta, red Simmental blended heifers recorded at 810 pounds carrying medium to lighter flesh were valued at $316 fob finishing feedlot.
North of Brandon, an auction market report had Charolais steers weighing 800 pounds priced at $357 and their lighter brothers scaled at 710 valued at $380. In central Saskatchewan, black mixed, lower flesh heifers on the card at 722 pounds set the bar at $339. In central Alberta, black steers about 688 pounds on hay and forage diet were last bid at $398. In Beaverlodge, Alta., mixed weaned steer calves averaging 658 pounds on light oats and hay diet with full processing records sold for $389. Near Calgary, Limousin based steers weighing 575 pounds were valued at $440 fob feedlot.
In southern Manitoba, mixed semi-weaned, run of the mill steers weighing just over 520 pounds supposedly moved at $440. West of Edmonton, the recorded price was $468 for Simmental Angus blended, longer term weaned steers weighing a shade under 500 pounds with full health data. Northwest of Calgary, a handful of 460-pound mixed bawling heifers apparently sold for $427.
The USDA Cattle on Feed Report had February placements up 10 per cent over year-ago levels which is considered bearish for the fed cattle market. Cattle feeders are expecting a bullish corn data on Thursday’s USDA Prospective Planting Report. The feeder market has been bid up so that margins barely cover feed costs so prices may have run their course for the time being.
— 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.
