For the week ending April 26, Western Canadian feeder cattle markets traded $3 to $5 higher compared to seven days earlier.
The week started off relatively unchanged. On Wednesday, Alberta packers were buying fed cattle on a dressed basis at $486/cwt delivered, up $11/cwt from the previous week. Using a 60 per cent grading, this equates to $292/cwt on a live basis. Breakeven pen closeout values are in the range of $256-$265/cwt. Strengthening margins resulted in stronger buying interest from major feedlot operators. In many cases, feedlot operators based their purchase price on the current fed cattle market rather than the deferred live cattle futures.
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In southern Manitoba, there were three larger packages of steers composed of higher quality genetics averaging 1,000 pounds that traded in the range of $374 to as high as $380. At the Ponoka sale, tan steers on backgrounding ration with full preconditioning records weighing 886 pounds sold for $387. Ontario buyers were bidding aggressively in the eastern Prairie regions.
The St Rose Auction Market in Manitoba reported Charolais steers averaging 866 pounds trading for $420. Another package of red mixed steers weighing 824 pounds moved through the ring at $432. In central Alberta, Simmental cross heifers averaging 850 pounds traded traded for $365 fob farm. North of Saskatoon, larger frame lower flesh tan heifers with a mean weight of 803 pounds were valued at $424/cwt fob farm on Thursday. For the most part, 800-pound heifers were trading in the range of $390-$405 earlier in the week.
At the Ponoka sale, a smaller package of mixed steers weighing a shade over 700 pounds on mostly corn silage diet including mineral supplement with full processing records traded for $464 on Wednesday. By the end of the week, higher quality 700 pounds steers were nearing the $500 level. At the Westlock sale, a small package of black mixed heifers scaled at 700 pounds were last bid at $410.
In central Alberta, Angus cross steers weighing 610 pounds were valued at $545. North of Calgary, a small pen-sized package of Limousin based heifers averaging 625 pounds supposedly sold for $470 late in the week. In Manitoba, the St Rose Auction reported 585-pound mixed steers welling for $577.
North of Calgary, a smaller package of black mixed steers weighing 510 pounds silenced the crowd at $584. In the same region, tan heifers weighing 520 pounds were quoted at $518.
The market appears to be ratcheting higher each week, which has made sellers hold onto cattle. Using Statistics Canada’s data for feeder cattle outside finishing feedlots as of January 1 and subtracting placements and exports, feeder cattle supplies should be similar to year-ago levels. The values above are top values as prices were quite variable across the Prairies.
