Western Canadian feeder cattle prices for 800-pound plus cattle were $2/cwt to $4/cwt higher on average for the week ending January 27. Feeders in the 500-800-pound category were up $3/cwt to $6/cwt with higher quality groups up as much as $10/cwt in some cases. Feeders 500 pounds and lower were unchanged from seven days earlier.
Larger supplies of backgrounded cattle are coming on the market at this time of year and negative feeding margins appear to be limiting the upside. Many feedlots are backed up with market-ready fed cattle and carcass weights are up 20 pounds over last year. Alberta packers were buying fed cattle on a dressed basis in the range of $360-$365/cwt delivered. Delivery periods were for late February or early March. The fed cattle price outlook looks more positive during the third and fourth quarters. This has sparked stronger buying interest for the 500-800-pound feeders.
Read Also
Dryness poised to threaten Saskatchewan crops
Crops in Saskatchewan are developing in opposite directions, the province’s latest crop report said. Growing conditions in the province vary, with some areas receiving enough rain while other locations are experiencing crop stress due to hot, dry conditions.
In Central Alberta, Simmental blended steers carrying medium flesh weighing 946 pounds on light grain and silage diet with full health data apparently sold for $282/cwt. South Edmonton, a larger group of tan mixed heifers (with about 25 per cent looking more fleshier and 75 per cent medium butter) on light grain, and forage silage diet with processing records weighing 920 supposedly traded for $278/cwt.
Northwest of Winnipeg, a smaller group of larger frame mixed steers with medium to lower flesh levels weighing just over 900 pounds reportedly silenced the crowd at $297 and Simmental based steers averaging 810 pounds were last bid at $315. In Central Saskatchewan, larger frame Angus blended heifers with various flesh levels weighing 830 pounds were quoted at $275.
In Manitoba, Charolais based weaned steers carrying very little flesh weighing 710 pounds were valued at $342. East of Calgary, black Limousin blended steers weighing 644 pounds apparently sold for $362. In Central Saskatchewan, shorter time weaned red steers weighing just over 600 pounds dropped jaws with a closing bid at $389. In the same region, tan mixed heifers weighing 620 pounds supposedly traded for $337.
North of Calgary, red mixed larger frame short-weaned steers weighing 560 pounds apparently sold for $401. In the same region, mixed heifers (weaning unknown) with recorded weight of 540 pounds were recorded at $338. In Ste Rose du Lac, Manitoba, the auction market report had Simmental steers averaging 526 pounds valued at $411 and black heifers weighing 510 pounds on the board at $375.
Calf prices were quite variable depending on weaning and processing records. The deferred live and feeder cattle futures are trading at a sharp premium over nearby positions. The market is telling producers to own lighter cattle sooner rather than later.
— 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.
