Klassen: Stronger fed market pulls feeder cattle complex upward

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Western Canadian feeder cattle prices were steady to $5 higher on average compared to seven days earlier in the week ending April 11. Photo: Geralyn Wichers

For the week ending April 11, Western Canadian feeder cattle prices were steady to $5 higher on average compared to seven days earlier. 

Steer calves under 700 pounds were quite variable with quotes coming steady to $15/cwt above week-ago levels. Heifers under 700 pounds were steady to $8 higher on average.  

The VJV market report from Ponoka included Charolais based steers averaging 1,012 pounds coming off a diet of five pounds of barley and corn silage with full processing records traded for $453/cwt 

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Northern Livestock Sales in Lloydminster reported a smaller package of medium to larger frame Simmental cross steers carrying lighter butter with a mean weight of 926 pounds exited the ring at $486/cwt.  At the same sale, a package of 163 Charolais heifers carrying lower flesh with a mean weight of 861 pounds on backgrounding grain and silage ration with full preconditioning dropped the gavel at $467/cwt.  

At the Ste. Rose auction, a package of 30 mixed steers averaging 814 pounds were last bid at $535/cwt. At the same sale, a smaller string of 837-pound black heifers sold for $457/cwt.  

South of Calgary, medium to larger frame Charolais cross heifers evaluated at 720 pounds sold for $548/cwt at a ring sale. A producer north of Calgary reported a group of larger frame Angus cross steers weighing 715 pounds on silage and light grain ration with full processing records sold for $790 at a ring sale.   

The TEAM market report included a group of 190 Simmental/Angus/Gelbvieh blended heifers averaging 610 pounds on a diet of silage and seven pounds of whole oats with full processing records but no implants traded for $618/cwt fob ranch near Hines Creek, Alberta.  

At the Ste. Rose auction, a group of 84 black steers averaging 642 pounds were last bid at 659/cwt. At the same sale, a group of 33 black steers scaled at 547 pounds notched the board at $751/cwt.  Northern Livestock Sales in Lloydminster reported a 10-pack of black heifers weighing 495 pounds that traded for $700/cwt.  

The VJV market report from Weslock included 13 Simmental cross Angus weaned steers averaging 452 pounds traded for  on a diet of oats and hay mixture with full processing records  sold for $731/cwt.  

Alberta packers were buying fed cattle on a live basis at $328-$330/cwt fob feedlot in Southern Alberta, up $3-$5/cwt from seven days earlier. The June live cattle futures closed at $249/cwt on Friday, which was a fresh contract high. Stronger live cattle values has renewed optimism in the feeder complex.   

About The Author

Jerry Klassen

Contributor

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.

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