For the week ending January 25, Western Canadian feeder cattle markets traded $$3-$6/cwt on either side of unchanged compared to seven days earlier. Higher quality genetics and lower flesh replacements were slightly firmer; however, feedlot operators incorporated the appropriate discounts on fleshier types and lower efficiency, smaller frame animals.
There was a surge in farmer selling across Western Canada last week. Sales volumes were larger than normal at many auction barns. The fear that President Trump would implement a tariff on feeder cattle ignited fears that that market would drop sharply.
Live and feeder cattle futures on the Chicago Mercantile Exchange were weaker on Thursday, as losses in the grains and oilseeds spilled into the livestock markets.
For the week ending January 11, Western Canadian feeder cattle prices were up $15-$20/cwt compared to the week ending December 21, 2024. In eastern Saskatchewan and Manitoba, quality packages of steers 800 pounds and over traded $20/cwt to $25/cwt higher compared to three weeks earlier.
The Alberta fed cattle market was quoted on a live basis in the range of range of $262-$265/cwt fob feedlot last week. Fed cattle forward contracts for March and April delivery (Alberta) were quoted from $270 to $272/cwt. Compared to last week of November 2024, fed prices are up $20/cwt on average.
Live cattle futures on the Chicago Mercantile Exchange were stronger Monday, hitting fresh contract highs in many months as forecasts calling for cold temperatures across United States ranching areas raised concerns over reduced weight gains for grazing cattle.
For the week ending December 28, there were no feeder cattle sales in Western Canada; however, that didn’t stop cattle producers from emailing or calling me over the holidays inquiring about market direction. I thought it would be an opportune time to discuss a couple factors that will influence the market direction over the next couple of months.
For the week ending December 21, Western Canadian backgrounded cattle and heavier calves were unchanged to $5 lower on average. Calves in the 600-800 pound range were relatively unchanged while calves under 600 pounds were steady to $10 higher.