Compared to last week, backgrounded yearlings traded $4-$8/cwt higher on average. Calves were quite variable with prices quoted from unchanged to as much as $10 higher. Overall, there appeared to be stronger buying interest this week across all weight categories.
Pen conditions remain poor to very poor in Southern Alberta but feedlot operators were managing accordingly. A few warmer days in Southern Alberta from April 11 through April 15 helped tremendously.
There was a minor pullback in prices for backgrounded cattle and some buyers felt this was good opportunity to secure ownership. The feeder cattle futures jumped on Monday and continued to percolate higher throughout the week. This contributed to the firmer tone in the cash market. Margins in the deferred positions are under water so finishing operators are banking on a $10-$12 rally in the live cattle futures. There is a tighter supply of available feeder cattle on both sides of the border which should translate into a stronger fed market longer term.
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In Southern Alberta, a pen-sized group of larger frame Charolais, light butter coated steers with full processing data on light grain and silage diet for 2.3 lbs/day gain weighing 850 pounds sold fob backgrounding farm at $330. In Central Alberta, Simmental backgrounded heifers at 860 pounds with full health records on light grain and silage diet ran through the ring at $296.
In Central Saskatchewan, a smaller group of Angus based steers with medium to lower flesh, on forage, light grain and supplemental diet, weighing 715 pounds reportedly traded $378. In the same region, medium to larger frame, red mixed, non-detailed heifers with lighter flesh around 705 pounds apparently sold for $325.
Northwest of Winnipeg, Limousin blended weaned steers reported at 615 pounds on light grain and silage diet were reported to have notched the board at $435. In Southern Manitoba, Angus mixed, weaned, heifers on the card at 650 pounds were last bid at $344. There was quite a variation on heifers as similar quality and weight females were quoted at $358 in Central Alberta.
In the Edmonton region, red Angus based weaned steers averaging 520 pounds traded for $430. In Southern Alberta, a smaller batch of 510 pound Charolais cross, weaned steers reached up $440. In Central Alberta, black shorter weaned bawling heifers weighing 450 pounds were quoted at $457.
The USDA Cattle on Feed Report had March placements down 12 per cent from last year. On April 29, the USDA will release their survey of feeder cattle outside finishing feedlots. Finishing operators have been more aggressive securing ownership ahead of these major reports.
— 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.
