For the week ending August 23, Western Canadian feeder cattle markets traded $5 to $10 higher on average compared to seven days earlier. In some locations such as Lethbridge, larger packages of quality yearlings traded $10 to as much as $20/cwt higher.
Many auction barns held feature yearling sales over the past week and there was no shortage of buying interest. Lethbridge area feedlots were aggressively bidding on local cattle. Ontario demand was evident across the Prairies with orders stretching into northern Alberta.
North of Red Deer, the TEAM market report had medium to larger frame black Angus yearling steers averaging 1,050 pounds off grass with full processing data valued at $430.50/cwt fob ranch. The VJV Ponoka fall video sale had Charolais cross yearling heifers weighing 1,040 pounds off pasture trading for $415/cwt fob ranch near Ponoka.
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For September 15-19 delivery, the TEAM market report had medium to larger frame black and red steers off native pasture averaging 1,000 pounds with full processing records and very light butter priced at $446/cwt near Cypress Hills, Saskatchewan. A rancher 200 km north of Saskatoon reported that a larger group of mixed “run-of-the-mill” steers with full processing and shots, off grass set at 915 pounds traded for $481/cwt fob ranch for second week September delivery.
The Perlich Bros Auction video sale market report stated that 70 Angus cross steers weighing just under 900 pounds off grass traded for $484/cwt fob ranch in Southern Alberta. At the same sale, a large package of Angus cross grass fed yearling heifers weighing 883 pounds were last bid at $451/cwt fob ranch for immediate delivery.
At the Ste Rose Auction Market ring sale, a smaller group of Simmental cross steers off grass averaging 818 pounds apparently sold for $492/cwt. The TEAM auction market report had black and red heifers evaluated at 810 pounds off pasture and mineral with full health data settled at $473.50/cwt fob ranch near Steinbach, Manitoba.
At the Perlich Bros Auction ring sale, a smaller package of black Angus yearling steers weighing a shade under 800 pounds were last bid at $529/cwt.
The VJV Ponoka fall direct video sale had a package of 90 steer calves blended with Charolais, Simmental and a touch of Angus genetics evaluated at 650 pounds trading for $579/cwt fob ranch approximately 200 km north of Edmonton. The same market report had a pen-sized group of Angus, Simmental and Limousin cross steers averaging 525 pounds setting bar at $671/cwt.
Alberta packers were buying fed cattle on a dressed basis in the range of $505-$510/cwt, steady to $5/cwt higher than a week earlier. Using a 60 per cent grading this equates to a live price of $303-$306/cwt.
Current breakeven pen closeouts values are in the range of $280-$286/cwt. Feedlot margins are in the range of $300 to $400 per head which has contributed to the stronger feeder market. Feed barley prices in Lethbridge have dropped $10/tonne over the past week and there is potential for further downside of $30-$40/tonne.
