Compared to last week, Western Canadian feeder cattle prices were down $4 to $6 on average. Sub quality feeders traded as much as $8 below week ago levels. The market was hard to define with wide price ranges on similar weight feeders within a short distance. Southern Alberta is contending with adverse pen conditions as temperatures hovered around 0 degrees Celsius during the day and -10 to -15 degrees at night across Western Canada. The feeder market appeared to incorporate a risk discount due to the higher probability of deathloss. Transportation risk also increased over the past week.
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Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
U.S. buying interest was evident in Manitoba and Saskatchewan. Feeding margins are deep in red ink in Alberta but Nebraska pen closeouts are showing profitability. The Alberta fed market is trading at a $10 to $12 discount to Nebraska because there is a year-over-year increase of market ready fed cattle supplies in Western Canadian feedlots. Mixed steers averaging 650 pounds were trading at $223-$225 in Nebraska while similar weight high quality Charolais steers were quoted at $195 in Manitoba. We’re bound to see an increase in U.S. buying interest for Canadian feeder cattle over the next few weeks.
Yearling demand was extremely soft last week but there were few quality packages available. In Central Alberta, mixed steers off grass and hay and no grain with full health records averaging 860 pounds were quoted at $175; yearling Simmental heifers weighing 820 pounds straight off grass on full health program were quoted at $173. In Manitoba, there was a small group of Charolais yearling steers weighing 885 pounds quoted at $179 and similar quality 815 steers valued at $188.
In Central Saskatchewan, late blooming short weaned angus based mixed steers weigh medium flesh levels averaging 730 pounds were quoted at $183; black larger frame heifers weighing 725 pounds were quoted at $168. In Manitoba, red medium flesh thin steers averaging 700 pounds were quoted at $187.
In the Lethbridge area, Angus-based weaned steers on full health program with records averaging 620 pounds were valued at $193 landed in the feedlot. In Northwest Manitoba, medium to larger frame red steers averaging 540 pounds were quoted at $209; similar quality heifers weighing 520 pounds were reported at $187. In Central Alberta, red white face steers averaging 525 pounds were valued at $189.
When you look at the crowds, the main difference from past years is the absence of the farmer backgrounding operator. Secondly, cow-calf producers that usually background calves over the winter are throwing in the towel and liquidating calves sooner than normal. In some cases, the there are more unweaned calves on the market or coming straight off cows because of the lack of pasture or forage. Pre-conditioning and preparing calves for market this year is not feasible for many ranchers.
