Klassen: Feeder market drops sharply

For the week ending November 1, Western Canadian feeder cattle markets traded $15-$30/cwt lower compared to seven days earlier. Cash feeder markets were off by $30-$40/cwt early in the week but then marginally recovered on Wednesday as the feeder cattle futures market stabilized.

There were a few exceptions. Higher quality yearlings over 800 pounds coming straight off grass were unchanged to $10/cwt lower on average. Calves under 550 pounds were unchanged to $15 lower compared to prior week.

The TEAM video market report had a package of 120 Simmental Angus cross heifers averaging 1,000 pounds straight off grass, with full processing records but no implants valued at $425/cwt fob ranch near Elkhorn, Manitoba for delivery the week of November 3-7th.

A cattle producer north of Calgary reported a larger package of 1,000 pound black wide frame Limousin cross steers off grass with full processing data and implants traded for $458/cwt fob ranch deliverable November 3-7.

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In central Alberta, there were packages of quality steers in the weight range of 800-825 pounds that traded in the range of $465-$485/cwt early in the week. On Monday, at the Killarney sale, a group of 25 black steer calves averaging 836 pounds traded for $482/cwt. On Thursday, at the Ste Rose Auction Mart in Manitoba, a smaller package of Charolais cross steers off grass averaging 870 pounds traded $513/cwt.

A rancher reported a larger package of Simmental-based steer calves averaging 700 pounds coming off cows and forage with processing records sold for $548 at a ring sale north of Calgary. Southeast of Saskatoon, a cattle buyer reported at group of 50 black heifers straight off their mothers and pasture averaging 705 pounds were valued at $480/cwt fob ranch.

At the Vermillion sale a package of 48 tan steers with a mean weight of 607 pounds traded for $599/cwt. At the same sale, a group of 25 Charolais heifers averaging 625 pounds sold for $547/cwt.

The TEAM video market report had a group of 80 Angus cross steers with a mean weight of 540 pounds with health records and no implants off cows and grass sold for $686/cwt fob ranch near Maple Creek, Sask., for immediate delivery.

At the Ponoka ring sale, a group of 16 red mixed heifers weighing 538 pounds off cows grass and hay with full processing data and no implants were last bid at $557/cwt. There was also a group of tan steers straight off their mothers averaging 500 pounds that traded for $744/cwt.

The Rimbey market report had a handful of May/June born black calves averaging 469 pounds coming off cows and pasture with health data priced at $741/cwt.

The April live cattle futures were trading $25-$30 off the contract highs. If feedlot operators didn’t hedge up incoming feeder cattle earlier in October, the margins on current inventory is negative $350-$450 per head. U.S. feeder cattle markets were down US$20/cwt-US$30/cwt from seven days earlier.