Last week’s price action in western Canadian feeder markets was quite variable. Yearling prices were steady to $4 lower on average across the Prairies. Mid-weight cattle were down $3-$4 in Alberta and $2-$4 higher in Manitoba.
Calf prices were also mixed. In eastern Saskatchewan and Manitoba, calves traded $2 to as much as $8 above week-ago levels; however, calf markets were unchanged to as much as $5 lower in Alberta and parts of Saskatchewan. U.S. and Ontario buying interest was noted on calves in the eastern Prairies. Buyers in these regions increased bids in line with the feeder cattle futures whereas Alberta buyers shrugged off the futures market activity. Basis levels eroded in Alberta.
Read Also
Canadian Grain Commission to use surplus to avoid fee increases
The Canadian Grain Commission will continue to use its surplus to cover budget shortfalls and avoid potential fee increases until 2028, the federal agency announced Monday, Oct. 27.
In Manitoba, medium-frame red steers with lower flesh levels weighing 885 lbs. were valued at $188 and Charolais-based heifers weighing 840 lbs. dropped the gavel at $173. In central Alberta, Angus-based steers on light grain diet with full health records averaging 830 lbs. were quoted at $188 and similar-quality heifers weighing 820 lbs. were valued at $173. Near Lethbridge, medium- to larger-frame black steers with thicker butter weighing 865 lbs. were valued at $184.
In northwestern Manitoba, mixed steers weighing 740 lbs. were valued at $208, whereas in central Alberta, larger-frame Simmental blended steers averaging 710 lbs. sold for $192. Elsewhere in Manitoba, black Limo-based steers weighing 630 lbs. were quoted at $225. South of Calgary, Charolais blended steers weighing 620 lbs. were valued at $216. In central Saskatchewan, higher-quality packages of steers weighing 600-625 lbs. were reported from $210 to $215.
Feather-light bawlers were rather hot in the eastern Prairie regions but these cattle garnered little interest in Alberta. In Manitoba, black steers weighing 442 lbs. reached up to $268 and north of Calgary, mixed steers weighing 460 lbs. were reported at $236.
Alberta packers were buying fed cattle on a dressed basis in the range of $260-$270, down $5-$8 from seven days earlier. Weaker fed cattle prices along with ongoing feed tightness set a negative tone in Alberta. Feedlot operators are not anxious to bring in replacements until some of the feed grain issues are more certain. Secondly, many feedlots need to liquidate a large volume of fed cattle over the next month. Until these issues are rectified, they are not bringing in any fresh replacements.
— 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.
