Klassen: Feeding margin uncertainty weighs on feeder cattle market

For the week ending Could 31, Western Canadian feeder cattle markets traded regular to as a lot as $10 decrease on common. Dryer grass circumstances in sure areas of Manitoba and central and northern Saskatchewan might have contributed to the softer tone at sure areas. Many feedlot operators proceed to take a seat on their fingers in the intervening time. Alberta packers have been shopping for fed cattle on a dressed foundation at $502/cwt, up $2/cwt from the earlier week. Utilizing a 60 per cent grading, dwell costs would equate to $301/cwt. Present breakeven pen closeouts are round $265/cwt. Margins are wholesome on cattle within the feedlot however incoming replacements are sharply below water given the worth of the October and December dwell cattle futures.

In central Alberta, Simmental primarily based steers weighing 900 kilos on barley and silage weight-reduction plan with full processing information have been valued at $405/cwt fob farm. In east central Alberta, black broad body Limousin primarily based steers averaging 825 kilos supposedly bought for $460/cwt.

The Killarney market report in Manitoba had crimson heifers weighing slightly below 900 kilos promoting for $391/cwt. On the Ste Rose sale, a smaller package deal of crimson heifers with a imply weight of 795 kilos have been marked at $425/cwt.

The Ponoka market report had a handful of crimson combined steers evaluated at 709 kilos on hay and silage weight-reduction plan with full preconditioning information transferring by way of the ring at $500/cwt. On the identical sale, tan heifers scaled at 700 kilos on a weight-reduction plan of silage and pellets with full processing information dropped the gavel at $486/cwt.

On the Westlock sale, a smaller package deal of Angus Simmental cross 650 pound heifers on hay and barley weight-reduction plan with full processing data bought for $467/cwt. On the Ste Rose sale, the market report had black heifers averaging 616 kilos buying and selling for $512/cwt.  Within the Calgary area, a smaller package deal of Charolais weaned steers weighing simply over 600 kilos have been quoted at $573/cwt.

The Ste Rose Public sale market report had Charolais steers averaging 555 kilos transferring by way of the ring at $610/cwt. A purchaser in central Alberta reported that Angus cross weaned heifers on the cardboard at 560 kilos bought for $530.

The USDA estimated U.S. fourth quarter beef manufacturing at 6.650 billion kilos, down from the 2024 last quarter output of 6.882 billion kilos. If the U.S. border stays closed to Mexican feeders for an prolonged interval, U.S. fourth quarter beef manufacturing forecasts would probably drop to six.400 billion kilos. This could drive the December dwell cattle futures larger and assist the yearling market throughout July and August.

---

You’ll additionally obtain business and coverage info, multi function handy e-mail delivered proper to your inbox!

One e-mail delivered 6 days per week for ranchers, feedlots, packers and livestock gross sales operators.