For the week ending February 14, Western Canadian feeder cattle prices were relatively unchanged compared to seven days earlier. The deferred live cattle futures have been consolidating in a narrow range over the past month, which has limited the upside in the feeder complex.
Supplies of yearlings or replacements over 800 pounds are increasing as backgrounding operators start liquidating fall placed calves. Quality and flesh conditions are quite variable on these cattle resulting in a wide price structure for similar weight replacements.
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Alberta packers were buying fed on a dressed basis at an average price of $520/cwt delivered, up $3-$5/cwt from a week earlier. Using a 60 per cent grading, the average live price would be $312/cwt. Breakeven fed cattle prices on pen closeouts are in the range of $318-$322/cwt (all costs included such as feed, yardage, processing etc).
The TEAM video sale included a group of 62 Simmental Angus, wide, long-frame, steers averaging 1,000 pounds with full processing data and implants on 10 per cent barley diet that sold for $466/cwt fob farm near Lacombe for immediate delivery.
The VJV market report from Ponoka included a group of black mixed steers on 20 per cent barley diet with full processing records and implants evaluated at 858 pounds priced at $509/cwt. A farmer southwest of Calgary reported a pen of thinner, Angus cross, yearling heifers with full preconditioning records on light grain and silage diet averaging 875 pounds were valued at $473/cwt fob farm.
At the Lloydminster sale, a group of 46 medium to larger frame Simmental steers with a mean weight of 721 pounds dropped the gavel at $586/cwt. At the same location, a group of 89 Charolais cross heifers weighing 712 pounds were last bid at $527/cwt.
At the VJV Westlock sale, a group of 34 Angus Simmental cross weaned steers averaging 677 pounds on five pounds of oats and silage diet with full preconditioned records sold for $610/cwt.
The Killarney market report included a nine-pack of black steers weighing 621 pounds valued at $638/cwt. At the Ste. Rose sale, a group of 20 black heifers averaging 606 pounds were last bid at $588/cwt.
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At the Prince Albert sale, a smaller package of exotic steers evaluated at 554 pounds sold for $692 and trio of British based steers weighing 506 pounds notched the board at $759/cwt. North of Calgary, a group of short-weaned red steers averaging a shade over 500 pounds with full health processing reportedly sold for $765/cwt.
According to the USDA, U.S. first quarter beef production is now expected to finish near 6.360 billion pounds, down 200 million pounds from last year. In the short-term, it appears that U.S. packers are well covered for their nearby slaughter requirements which may negate the tighter supply fundamentals.
