For the week ending November 9, Western Canadian feeder cattle prices were relatively unchanged for the fourth week in a row. However, there were certain pockets where quality calves under 650 pounds were $3 to $6 higher.
The weaker Canadian dollar has enhanced the feeding margin structure on incoming replacement calves and this translated into stronger values on premium genetic packages. Finishing feedlot operators in Alberta and Ontario were fairly aggressive in Manitoba and Saskatchewan markets.
The quality of calves in central and northern Alberta was sub par in some cases as flesh conditions are becoming more apparent. However, there was limited slippage overall. Cattle on feed inventories in Alberta are running 10 per cent below year-ago levels and order buyers had full decks this past week. The Canadian feeder market is trading at a sharp premium to U.S. values enhancing imports and curbing shipments south of the border.
Read Also
U.S. again halts cattle imports from Mexico over flesh-eating screwworms
The flesh-eating livestock pest New World screwworm has advanced closer to the U.S. border with Mexico, the U.S. Department of Agriculture said, prompting Washington to block imports of Mexican cattle just days after it allowed them to resume at a port of entry in Arizona.
At the Lloydminster sale, a smaller package of exotic yearling steers off grass averaging 1,020 pounds were valued at $314. In Central Alberta, a small group of larger frame 920-pound mixed steers off grass reportedly sold for $342. Near Calgary, red mixed yearling heifers off grass weighing just over 900 pounds traded for $312.
In central Alberta, Charolais Simmental cross steers off cows and grass with full processing data weighing 823 pounds pounds sold for $369. Northwest of Winnipeg, a small group of tan steers off cows and grass on the card at 750 pounds supposedly sold for $370. In southwest Manitoba, Charolais steer calves weighing 710 pounds were quoted at $383. South of Edmonton, Simmental based heifers off cows and grass with full health data weighing 690 pounds were quoted at $350.
North of Saskatoon, Angus blended semi-weaned steers scaled at 605 pounds reportedly moved through the ring at $417. East of Saskatoon, Angus based heifers off their mothers and pasture evaluated at 600 pounds apparently sold for $360. Northwest of Winnipeg, Charolais steers straight off off their mothers averaging 625 pounds traded for $410.
West of Edmonton, a smaller package of mixed steers coming off their mothers and pasture around 550 pounds supposedly sold for $429. Northwest of Saskatoon, black mixed unweaned steers weighing 547 pounds were last bid at $443. In southwest Manitoba, larger frame black steers weighing 560 pounds apparently settled at $432 and similar quality heifers evaluated at 542 pounds set the bar at $398. Northwest of Winnipeg, Charolais steers just under 500 pounds reached up to $474. South of Edmonton, a small package of Limousin blended steers around 400 pounds touched $598.
Bred heifers are quite variable across Western Canada but this market is in price discovery mode. Near Lethbridge fancier bred heifers reached up to $5350 with good quality bred replacements quoted from $3800 to $4500.
— 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.
