For the week ending June 1, Western Canadian feeder cattle markets were relatively unchanged compared to the previous week. It’s that time of year when volumes are limited and the market can be quite variable from region to region.
There were pockets in Southern Alberta and Eastern Saskatchewan where yearlings were up $4 to $8. In Central Alberta and certain regions of Manitoba, small packages of lighter calves experienced limited demand dropping $8 to as much as $15 from seven days earlier.
Finishing feedlots continue to be aggressive on quality genetic backgrounded packages. Buying interest for grassers appeared to be softer this week. Many ranchers and backgrounding operators are liquidating late blooming stragglers or pre-conditioned off grades. The crème of quality has been skimmed off the market and buyers have their work cut out to inspect according. At the same time, there is no shortage of buying interest on quality packages and finishing operators were not afraid to pay premiums to secure ownership.
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In Central Alberta, medium to larger frame, tan steers carrying light butter, with full processing records, on barley silage and limited grain diet, weighing 900 pounds dropped the gavel at $330. Northwest of Winnipeg, Angus blended heifers averaging 875 pounds with medium to lighter flesh levels coming on light grain and silage diet apparently sold for $299.
Southeast of Saskatoon, black Limousin blended, larger-wide frame steers on backgrounding diet, with lower flesh levels, weighing 815 pounds were apparently valued at $359. South of Edmonton, tan heifers with full health data on forage and light grain diet, weighing a shade over 800 pounds reportedly traded for $320.
North of Brandon, a smaller package of black, thinner, weaned steer calves weighing 710 pounds supposedly sold for $399. At the same sale, similar quality heifers with a scale weight of 672 pounds were last bid at $340.
In Central Alberta, mixed weaned larger frame steers averaging a shade over 600 pounds reached up to $450. In East Central Saskatchewan, Simmental based, thinner weaned heifers on the card at 615 pounds were valued at $389.
In Central Saskatchewan, Charolais short weaned, steers averaging 510 pounds were reported to trade for $502. In Central Alberta, Simmental based weaned steers with full processing, averaging 520 pounds set the bar at $490. In Northern Alberta, a smaller package of black heifers weighing around 500 pounds apparently notched the board at $406.
There is a supply deficit of fed cattle in Alberta and Saskatchewan. Alberta packers were showing bids on a dressed basis in the range of $436-$438/cwt, steady to $4/cwt higher than last week. Feedlot pen closeouts are hovering just above break-even.
— 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.
