Klassen: Feeder market remains volatile

For the week ending September 27, Western Canadian feeder cattle markets traded $10/cwt higher to $10/cwt lower compared to seven days earlier.

There were two main factors that contributed to the volatility. The deferred live cattle futures rallied on Monday but then gave back all the gains by the end of the week. Secondly, Ontario buying interest resurfaced in certain locations across the Prairies, which resulted in stronger prices. However, Alberta feedlot demand was somewhat subdued compared to a week earlier.

The Ponoka Auction Market report had a larger group of tan heifers off grass with full processing records averaging 1020 pounds trading for $451/cwt. The TEAM video sale had black and red steers off grass with a mean weight of 1,020 pounds with full processing data and implants priced at $467/cwt fob ranch near Veteran Alberta.

A rancher reported a package of Charolais based steers weighing 940 pounds straight off grass traded for $498/cwt northwest of Calgary.

The Gladstone Auction market report had a smaller package of black yearling steers off grass weighing 843 pounds valued at $542/cwt. A nine-pack of similar quality heifers evaluated at 777 pounds were last bid at $516/cwt at the same sale. The TEAM Video Auction had a group of larger frame black and red steers averaging 825 pounds off grass on the full herd health program priced at $538/cwt fob ranch near Hanley, Saskatchewan.

The VJV Rimbey Auction reported a small group of Simmental cross Gelbvieh steer calves averaging 743 pounds off cows and grass with full processing data moved through the ring at $585/cwt. At the Ponoka sale, a small group of mixed yearling heifers off grass with full health records and no implants scaled at 732 pounds notched the board at $519/cwt.

The Vermillion Livestock Exchange market report had a group of tan steers averaging 658 pounds selling for $618/cwt. More importantly, a group of black replacement heifers averaging 638 pounds were valued at $614/cwt. At the Ste Rose Auction Mart, a smaller package of Simmental cross steers weighing a shade over 600 pounds traded for $640/cwt at the ring.

The Prince Albert Auction market report had black bawling steers weighing 504 pounds marked at $741/cwt and similar quality heifers averaging 495 pounds priced at $655/cwt.

Alberta packers were buying fed cattle on a dressed basis in the range of $520-$525/cwt delivered, unchanged from a week earlier. Using a 60 per cent grading, this equates to a live price of $312-$315/cwt. Cattle bought this week were scheduled for November delivery.

U.S. and Canadian packers appear to be well covered for their nearby slaughter requirements. The lack of buying interest for fed cattle contributed to the softer tone from Alberta feedlot operators.