For the week ending January 18, Western Canadian feeder cattle markets were relatively unchanged compared to seven days earlier.
On Thursday, January 16, Alberta packers were buying fed cattle on a live basis at $273-$275/cwt fob feedlot in Southern Alberta, up $3-$5/cwt from the previous week. Alberta feeding margins for nearby delivery continue to improve, which was supportive for the feeder complex. However, buyers were not anxious to push the market higher.
U.S. wholesale beef prices were quoted at US$333/cwt on Thursday, January 16, unchanged from the close on January 10. The deferred live cattle futures have consolidated at contract highs over the past week which contributed to the steady tone in the feeder market.
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In Central Alberta, larger frame lighter flesh mixed steers averaging 901 pounds with full processing records sold for $370. Near Calgary, Simmental mixed larger frame heifers evaluated at 900 pounds with full health records on light grain and silage diet were valued at $320 fob feedlot. South of Edmonton, tan mixed steers weighing just over 800 pounds were last bid at $402. In Southwest Manitoba, larger-wide frame black steers on the card at 780 pounds silenced the crowd at $422 and a smaller package of red heifers weighing 770 pounds notched the board at $360.
In Central Alberta, Charolais weaned steers with a mean weight of 692 pounds traded for $454 and Angus based heifers averaging 700 pounds were last bid at $$392. Southeast of Saskatoon, higher quality tan steers weighing just over 600 pounds touched $520. Northwest of Winnipeg, black mixed heifers averaging 624 pounds dropped the gavel at $388 and red steers weighing 620 pounds set the bar at $445.
At the Rimbey sale, Simmental Angus cross short-weaned calves on barley and silage diet with full processing records averaging 586 pounds sold for $488. Near Lethbridge, a handful of red steers weighing just over 500 pounds sold for $552. In Southwest Manitoba, black steers weighing 514 pounds reached up to $557 and a smaller string of black heifers with a mean weight of 463 pounds had the crowd gasping at $508.
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.
— 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.
