Compared to last week, western Canadian grass yearling prices were relatively unchanged. Yearlings over 800 lbs. on light grain rations or on diets mixed with silage were priced at $5 to as much as $20 discount to those cattle coming straight off pasture. Larger groups of uniform quality continue to trade at a minor premium to smaller packages of similar genetics. The market has traded sideways over the past three weeks. The upside momentum appears to be easing for the time being; however, the market is very well bid at the current levels.
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Alberta crop conditions improve: report
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.
Stronger Ontario buying interest was evident in the eastern Prairie regions. Strength in deferred live cattle futures, along with a weaker Canadian dollar, was supportive. Barley prices continue to grind lower as harvest moves into the final stages. Alberta packers were buying fed cattle at an average price of $389/tonne delivered. Live prices were quoted in the range of $228-$230/cwt f.o.b. feedlot in southern Alberta.
In central Alberta, larger-frame Simmental-based steers with full health records straight off grass averaging 975 lbs. sold for $311 while mixed heifers off grass with a scale weight of 900 lbs. traded for $296. In southern Alberta, a larger group of mixed steers off grass weighing 914 lbs. were last bid at $327 f.o.b. the ranch and black heifers weighing 930 lbs. silenced the crowd at $290.
Northwest of Winnipeg, Charolais-based steers weighing 807 lbs. reportedly sold for $340 and black steers averaging 725 lbs. apparently dropped the gavel at $346. In central Saskatchewan, mixed heifers weighing just over 800 lbs. notched the charts at $303 and 725-lb. tan heifers were said to have traded for $315.
Southeast of Saskatoon, Angus-based steers weighing 610 lbs. were valued at $379. In Manitoba, red steers weighing just under 600 lbs. touched the psychological level of $399.
In southern Alberta, a larger group of red steer calves weighing 565 pounds traded for $296 f.o.b. the ranch. At a central Alberta auction market, red semi-weaned heifers weighing 560 lbs. apparently sold for $351. South of Edmonton, black steers weighing 433 lbs. were on the card at $433.
U.S. feeder cattle prices in the major markets were US$2-$4 higher last week. The corn harvest is in early stages and yields are somewhat disappointing. Comments from the trade from south of the border are that feeder cattle supplies are tighter than earlier anticipated. This is due to larger-than-expected feedlot placements during the summer months.
— 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.
