For the week ending April 27, Western Canadian feeder cattle markets were relatively unchanged compared to seven days earlier.
Alberta packers were buying fed cattle on a dressed basis in the range of $430-$432/cwt delivered. This compares to $405-$415/cwt on April 5. Alberta pen closeouts are hovering just below breakeven which has been supportive for the feeder market.
There are pockets in Western Canada where fleshier calves are coming on stream. Backgrounded heifers also appeared to be fleshier this past week, resulting in a limber demand on 900 pound plus categories. Calves under 600 pounds were quite variable with buyers looking for the the longer term weaned animal for natural quick adjustment to feedlot condition.
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The Peace Country and Central Alberta are contending with dryer conditions early in the season. This may be stemming demand for grassers. Pen conditions are improving in southern Alberta but feedlot hands are in the field seeding. The next few weeks will have delayed processing times which causes some feedlots to decrease incoming feeder volumes.
In southern Alberta, medium-to-larger frame Angus blended steers on controlled weight gain diet of corn silage and light barley weighing 925 pounds were reported as trading at $325 fob backgrounding feedlot. North of Calgary, red mixed larger frame heifers with some fleshier types around 900 pounds on light grain and silage diet were quoted at $295 fob backgrounding feedlot.
Northwest of Winnipeg, a group of black, lower flesh larger frame 800 pound steers reportedly moved at $355. In Central Saskatchewan, larger frame, fleshier Simmental-based heifers on the card at 820 pounds apparently sold for $305. South of Edmonton, thinner larger frame tan steers on light grain and silage diet, around 750 pounds, with full health records apparently dropped the gavel at $388. Southeast of Calgary, larger frame lighter butter Limousin steers averaging 710 pounds touched the psychological $400 level.
North of Brandon, a small package of Charolais steers weighing 635 pounds notched the board at $410 and similar quality and genetic heifers around 600 pounds apparently sold for $355. In Central Alberta, red mixed, weaned steers on silage and mineral diet with full processing records averaging 620 pounds were last bid at $435. In the same region, Simmental blended long term weaned heifers with minimal butter around 610 pounds traded for $358.
East of Edmonton, a handful of red mixed, run-of-the mill steers weighing 575 pounds had the last cry at $440. In Central Saskatchewan, British based short-weaned steers just over 500 pounds ran through the ring at $460. In Southwest Saskatchewan, two handfuls of mixed red heifers on the card at 500 pounds were valued at $405.
Good quality cow-calf pairs are trading around $4500 with some packages reaching over $5,000. The feeder market is functioning to encourage expansion. Heifer retention is occurring amongst smaller cow-calf operators thereby lowering the feeder cattle supply. In some cases, buyers with adequate grass are buying larger packages of premium genetic heifers to sell as bred heifers four months from now, especially if they have bulls available.
— 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.
