For the week ending July 1, western Canadian feeder markets traded $2-$5/cwt higher compared to seven days earlier. Quality groups of yearlings were up $8-$10/cwt from a week earlier. South of the border, major markets in Oklahoma had feeder steers and heifers trading US$5-$10/cwt above week-ago levels. The Canadian market is functioning to ration demand by trading at a premium to U.S. values.
Alberta feedlot operators pulled in the reins last week due to drier conditions in Western Canada. The barley crop is experiencing yield drag and the cost per pound gain in the fall period may be higher than earlier expectations. At the same time, we’re seeing fairly aggressive offers for U.S. corn into southern Alberta for October through December which is alleviating some of the concern. Cow-calf producers in the drier pockets are marketing portions of their yearling crop sooner than normal. Higher prices are also attracting more supplies to the market compared to normal. The feeder market will be extremely volatile over the next month as the U.S. corn crop moves through the critical pollination phase.
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Near Lethbridge, medium- to larger-frame mixed steers carrying lower flesh levels weighing 940 lbs. reached up to $287/cwt. In the same region, above-average-frame heifers carrying lighter butter weighing 850 lbs. sold for $274. In central Alberta, Angus-blended long-time weaned steers on light grain/forage ration with full health data recorded at 830 lbs. dropped the gavel at $307. South of Edmonton, Charolais-blended heifers coming off grass with processing data scaled at 850 lbs. silenced the crowd at $280.
Southeast of Saskatoon, a smaller group of mixed steers off grass weighing 710 lbs. were valued at $328. North of Calgary, larger-frame Simmental-based heifers off grass weighing a shade over 700 lbs. charted the board at $299.
North of Red Deer, Angus-based fully weaned steers on light grain/forage diet weighing 630 lbs. were last bid at $355. East of Edmonton, a handful of mixed heifers off grass with full health records weighing 650 lbs. set the bar at $285.
In central Saskatchewan, a small group of tan steers weighing just over 500 lbs. topped out at $399. At Dawson Creek, a handful of red heifers weighing 514 lbs. sold for $320. The market was hard to define for calves under 600 lbs. due to limited numbers. Small groups failed to draw significant buying interest.
Alberta packers were buying fed cattle on a dressed basis in the range of $409-$410/cwt delivered last week. Sales are down $5-$6/cwt from seven days earlier. Feedlots face a slightly softer fed market and an uncertain feed grain complex.
— 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.
