For the week ending January 31, Western Canadian feeder markets were relatively unchanged from seven days earlier.
Adverse weather in southern Alberta may have tempered buying interest for lighter weight calves. Alberta packers were buying fed cattle on a dressed basis in the range of $508-$510 per hundredweight delivered, steady to $2/cwt higher than last week. Live cattle prices near Lethbridge fob feedlot were averaging $305/cwt. Feedlot margins have improved but remain in red ink by $200-$300 per head. Given current prices, the break-even fed cattle price for June on a live basis is in the range of $350-$355/cwt. This is the main factoring stemming additional strength in the feeder complex.
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The TEAM market report included a group of 140 Charolais blended steers averaging 980 pounds, with full processing data but no implants, coming off a diet of barley and corn silage that traded for $461 fob farm near Kelwood, Man. for delivery March 10-17.
Northeast of Calgary, a backgrounding operation reported a group of large wide frame black Limousin cross steers weighing just over 900 pounds with full processing on a light grain and silage diet-controlled weight gain ration were valued at $475/cwt fob feedlot. Fleshier cattle of similar weight traded at a $15 to $30/cwt discount.
At the Ponoka sale, a package of 44 Simmental Angus cross steers averaging 822 pounds with full processing records on barley and haylage diet sold for $517/cwt. At the same sale, Charolais blended pre-conditioned heifers evaluated at 812 pounds on backgrounding ration carrying medium to lighter flesh were valued at $475/cwt.
At the Perlich Bros Auction Mart near Lethbridge, a smaller group of Charolais based steers weighing 748 pounds dropped the gavel at $566/cwt. At the same sale, a package of 26 red mixed steers averaging 727 pounds exited the ring at $590/cwt. At the Lloydminster sale, a group of 26 red heifers with a mean weight of 714 pounds traded for $510/cwt.
At the Ste Rose du Lac sale in Manitoba, mixed steers with a mean weight of 618 pounds traded for $627 and a smaller package of mixed heifers averaging 612 pounds sold for $554/cwt. Interesting to note at the Clyde sale in Alberta, a group of heifers for beef cow replacement weighing 648 pounds were quoted at $591/cwt.
The Lloydminster market report included at group of Charolais steers averaging 530 pounds that sold for $715. AT the same sale, a nine-pack of 450-pound red and black Angus steers were quoted at $859/cwt
The market is in a very unique situation. If we don’t see the fed cattle market rally by late March or April, the feeder market will start to decline despite the tighter supply scenario.
