Fewer cattle bolster prices at auction

Volumes lower at Manitoba’s auction marts as farmers switch focus from marketing to calves

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Published: April 18, 2024

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Fewer cattle bolster prices at auction

Fewer cattle are going through the rings at Manitoba auction sites as producers switch their focus to this year’s calf crop.

Approximately 8,700 head were sold at auction during the week ended April 11, compared to 10,000-plus seen in previous weeks, with every site open.

Kirk Kiesman, general manager of Ashern Auction Mart, said keeping calves healthy and cows comfortable takes priority over marketing at this time of year.

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“Usually, the marketing is all done by then or they’re not looking into it until they’re done calving,” he said.

Fewer cattle for sale has seemingly resulted in stronger prices compared to the previous week. Prices for feeder steers up to 900 pounds ranged from $290-$566 per hundredweight. The week before, prices ranged from $290-$501. Heifers in the same weight class ranged from $238-$460, compared to $240-$440 the week before.

With hamburger season around the corner, D1 and D2 slaughter cows were sold for $105-$172/cwt., the same as the previous week. Mature bulls had a wide range from $110-$212/cwt., $3.50 more on the higher end than the week before. Heiferettes ranged from $130-$241/cwt. compared to $177-$240 the week before.

Kiesman said top-end cattle are still trading strong in Ashern, while plainer cattle get lower prices.

“Replacement-quality reds right now are selling well. There are a few guys that are going to breed some more heifers this year and are trying to rebuild their herds after drought the past couple of years.

“Replacement heifers have been trading well the last couple of weeks. If you have large-framed exotic steers that are good quality, then they’re trading really well too.”

Sharp declines in live cattle futures at the Chicago Mercantile Exchange over the previous two weeks eased off during the week ended April 11. The June live cattle contract closed at US$173.9/cwt., compared to $175.85 a week earlier. In between, June live cattle hit their lowest price in nearly three months at $171.4 on April 5.

As for May feeder cattle, prices declined $5.725/cwt. during the week, to close at $238.15 on April 11. Earlier in the day, the contract dropped to $234.675, its lowest since Jan. 11.

Fewer cattle for sale has offset some losses coming from weaker U.S. futures, according to Kiesman.

“The cash on the good cattle is quite a bit stronger than the futures would lead people to believe. In February, they said there were a lot of cattle on feed, and there were, but I think it had more to do with the high price drawing out some of the feeder cattle earlier.”

Kiesman added that “good exotic cattle” were going to Eastern Canada and top-end British varieties were moving west. He also expects prices to stay steady and cattle numbers to decline.

“I would think the numbers coming through the ring will slow down and prices are going to hold or, in some places, pick up,” he said.

About the author

Adam Peleshaty – MarketsFarm

Adam Peleshaty – MarketsFarm

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Adam Peleshaty writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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