For the week ending May 4, Western Canadian feeder cattle prices were quite variable and the market was hard to define. Alberta and certain regions of Saskatchewan received snow, which caused the market to trade $3 to $5 lower. However, in Eastern Saskatchewan and Manitoba, feeder cattle prices were steady to $3 higher.
Feedlots in Southern Alberta are once again contending with adverse pen conditions. Therefore, Ontario producers capitalized on this situation, stretching orders across Western Canada. U.S. interest was localized in Saskatchewan and Manitoba.
Buyers noted that heifers over 800 pounds are fleshier and were discounted accordingly. Lighter heifers under 800 pounds moved in tandem with steers in the regions with higher prices. Stronger buying interest surfaced on 600 to 750 pound replacements. Feedlot operators want to have cattle finished in time to sell during the quarter of 2024 and this weight category is mature enough to withstand adverse weather. Calves under 600 pounds experienced a diverse price structure with weaned packages reflecting a sharp premium over average prices.
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In Central Alberta, black steers on light grain and barley silage diet with full processing records averaging 935 pounds sold for $308. In the same region, medium flesh larger frame Simmental blended heifers on light grain and corn silage diet weighing 900 pounds were last bid at $273.
In Central Saskatchewan, backgrounded, lower butter carrying, larger frame full processed black steers averaging 800 pounds sold for $358. Southeast of Calgary, Limousin blended steers on light grain, straw and corn silage diet were quoted at $355 fob backgrounding lot. The Lethbridge premium evaporated last week due to the adverse pen conditions.
North of Calgary, medium frame, lighter, thin flesh, weaned, red mixed steers around 700 pounds were reported to trade for $380. In Southern Manitoba, weaned, larger frame black steers on the card at 710 pounds dropped the gavel at $404. The differential reflects the weather discount.
In Southern Alberta, Charolais blended, weaned, steers weighing just over 610 pounds traded for $431. Northwest of Winnipeg, Charolais, 620-pound weaned, heifers apparently sold for $365.
East of Edmonton, tan weaned steers averaging 550 pounds moved through the ring at $450.
According to the USDA, feeder cattle supplies outside finishing feedlots on April 1 totalled 18.081 million head, down 766,000 head from April 1 2023 and down 636,000 head from April 1, 2014. In Western Canada, we’re estimating feeder cattle outside finishing feedlots as of April 1 to be down about 75,000 head from 12 months earlier. Available feeder cattle supplies are lower than earlier projections.
— 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.
