Klassen: Strong demand underpins Western Canadian feeder market

For the week ending February 28, Western Canadian feeder cattle markets were unchanged from seven days earlier. Calves may have traded $5-$10/cwt higher at some locations.

Feeding margins have improved over the past week with Southern Alberta pen-closeouts now hovering near breakeven. Ontario feedlot margins are in positive territory by $20-$40/head.

At the Ponoka video sale, a group of 61 mixed steers with a mean weight of 1,009 pounds on five pounds of rolled barley and corn silage diet with full health records and implants sold for $462/cwt fob farm. At the Ste Rose Auction Mart in Manitoba, a group of 18 Charolais steers weighing 914 pounds dropped the gavel at $486/cwt.

For up to date livestock futures prices, visit the Western Producer Markets Desk.

Northwest of Saskatoon, a farmer reported a group of 850-pound Charolais cross steers on backgrounding ration with full processing and implants were valued at $505/cwt fob farm. Similar quality heifers with a mean weight of 834 pounds were quoted at $479/cwt.

The Perlich Bros auction market report included 50 larger frame, medium to lower flesh, black Angus steers averaging 811 pounds that sold for $532/cwt. At the Prince Albert sale, a smaller group of red replacement heifers weighing 782 pounds silenced the crowd at $515/cwt.

At the Lloydminster sale, a group of 46 Simmental steers with a mean weight of 721 pounds traded for $586/cwt. At the same sale, a group of 22 black heifers weighing 693 pounds were last bid at $526/cwt.

At the Westlock sale, red Angus Simmental weaned steers with full processing records on hay diet averaging 651 pounds set the bar at $639/cwt. North of Calgary, a producer reported a group of black, weaned heifers weighing just over 600 pounds on silage and hay diet sold for $610/cwt at a ring sale. At the Prince Albert sale, a handful of black steers weighing 580 pounds traded for $676/cwt.

At the Killarney sale, a handful of black steers weighing 552 pounds traded for $717/cwt and black heifers averaging 543 pounds sold for $621/cwt. The Perlich Bros market report included at group of 55 black Angus steers weighing 500 pounds that were valued at $802/cwt.

Alberta packers were buying fed cattle on a dressed basis in the range of $530-$535/cwt. Using a 60 per cent grading, this equates to a live price of $318-$321/cwt. Ontario steers were trading at an average of $535/cwt delivered plant.

For April, fed cattle breakeven prices on a live basis are around $350/cwt in Southern Alberta.