For the week ending Nov. 18, western Canadian feeder cattle prices traded $3-$5/cwt on either side of unchanged compared to seven days earlier. Buyers appeared to shrug off the weaker futures market and the defensive tone from a week earlier evaporated.
Eastern Prairie markets were firm, with larger packages of quality cattle trading a solid $3-$4/cwt higher. Feeder cattle are becoming fleshier at this time of year but discounts were limited off average values. Alberta feedlot inventories are up three per cent from year-ago levels but there was steady buying interest from larger operations, especially on 700-plus-lb. cattle. Yearling supplies were limited, which may have been a supportive factor. Despite a softer tone in deferred live cattle futures, feedlot operators are once again implementing the “hope factor” with ideas the market will strengthen in the spring timeframe. Moderate temperatures and drier weather in Alberta have been optimal for bringing in replacements. Feeding efficiencies tend to improve if calves can settle into the new environment without any stress.
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In central Alberta, larger-frame weaned tan steer calves weighing just over 800 lbs. traded for $314. Northwest of Winnipeg, Charolais lower-flesh steers averaging 800 lbs. dropped the gavel at $324 and similar-quality heifers on the card at 760 lbs. sold for $299. North of Calgary, Simmental mixed semi-weaned steers with full health records averaging 741 lbs. were last bid at $331.
South of Edmonton, Charolais/Angus-cross steers coming off cows and grass diet with full health data and a scale weight of 630 lbs. were reported to have moved through the ring at $349. In central Saskatchewan, semi-weaned Angus-blended steers carrying 610 lbs. silenced the crowd at $362 and similar-quality heifers averaging 600 lbs. were said to have traded for $313. Northeast of Saskatoon, a larger package of Angus-based steers coming off cows and grass diet weighing 600 lbs. notched the board at $373.
In central Saskatchewan, semi-weaned tan steers weighing 560 lbs. were last bid at $387 and similar-quality heifers at 568 lbs. were reported to have traded for $332. West of Edmonton, black mixed weaned steers with full processing records on the card at 510 lbs. sold for $418. In Manitoba, Charolais-based steers straight off their mothers weighing 510 lbs. set the bar at $399.
The U.S. Department of Agriculture’s Cattle on Feed report had total inventories as of Nov. 1 up two per cent from last year and feedlot placements were up four per cent. Market-ready fed cattle supplies in the U.S. will be larger than anticipated in the first and second quarters of 2024.
— 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.
