For the week ending September 20, Western Canadian feeder markets traded steady to $5/cwt lower compared to seven days earlier. There were pockets where quality calf packages traded $10-$15/cwt below prices from the prior week. The October feeder cattle futures have been trading at $15/cwt premium to the deferred March 2026 contract.
This inverse in the feeder futures market appeared to weigh on calf prices as the market structure tells feedlot operators to be patient on purchases. Auction market reports had larger volumes of calves this past week and the additional supply also contributed to softer demand. Ontario buying interest appeared to be limited this past week resulting in a softer tone in Manitoba and Eastern Saskatchewan.
The Ponoka Market Report had mixed yearling steers straight off grass on video weighing 1,066 pounds with full processing records trading for $454/cwt fob ranch. The TEAM Video Auction Report had a group of mixed yearling steers (including Charolais cross and Black/Red Angus) off grass with full processing records including implants averaging 950 pounds last bid at $483/cwt for delivery September 30 fob ranch near Veteran Alberta. The Ste. Rose du Lac Auction in Manitoba had a small package of Charolais yearling steers averaging 944 pounds trading for $462/cwt at the ring.
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At the Killarney, Manitoba auction, a smaller package of black yearling steers evaluated at 843 pounds off grass sold for $506/cwt. At the same sale, a seven-pack of Simmental blended yearling heifers averaging 864 pounds settled at $491/cwt.
The Lloydminster Market report (ring sale) had a smaller package of red-mixed, short-weaned, steer calves scaled at 704 pounds notching the board at $593/cwt. At the same sale, a handful of red heifer calves averaging 709 pounds settled at $520/cwt.
The Team video market report had a group of Charolais steers weighing 650 pounds with full processing data and implants off mothers milk and grass traded for $651/cwt fob Picture Butte delivery for October 30. The same video sale reported a group of 50 medium frame red heifers evaluated at 630 pounds with full veterinary records but no implants off mothers and grass moving at $641/cwt fob ranch near Fort Macleod deliverable the week of October 20th.
The Meadow Lake Auction Market report had a group of black steers weighing 596 pounds trading for $671/cwt and a pair of tan steers averaging 501 pounds selling for $770/cwt.
Alberta packers were buying fed cattle on a dressed basis in the range of $520-$525/cwt delivered, steady to $2/cwt lower than last week. Using a 60 per cent grading, this equates to a live price of $312-$315/cwt delivered.
Break-even pen closeouts are in the range of $285-$295/cwt fob feedlot. For March and April, break-even pen closeouts based on this week’s replacement values are in the range of $360-$365/cwt on a live basis (all costs included). The April live cattle futures are reflecting a fed cattle live price of only $326/cwt. Incoming replacements are deep in red ink.
