Klassen: Lower feed grain prices set to enhance feeder cattle prices

For the week ending July 19, Western Canadian feeder cattle markets have been unchanged from the earlier week, though volumes have been restricted.

Calves beneath 550 kilos have been extraordinarily variable after leaping sharply the earlier week. Famous demand surfaced from Ontario the place packer direct gross sales for Grade A steers reached $530/cwt on a dressed foundation. Utilizing a 60 per cent grading this equates to a stay worth of $318/cwt.

Alberta packers have been shopping for fed cattle at $297.50/cwt fob feedlot in southern Alberta, comparatively unchanged from the earlier week. Final week, Ontario corn was quoted at $5.75/bu whereas barley in Lethbridge space was buying and selling at $6.50-$6.75/bu delivered. Feedlot margins stay wholesome as fall positioned calves come available on the market in bigger numbers. There’s a truthful quantity of empty pen area. Demand for feeders is at a seasonal excessive.

Grass yearling gross sales are set to begin subsequent week at many public sale barns in Western Canada. This can outline the value construction for the autumn interval. There are pockets of Saskatchewan and Alberta the place pastures have deteriorated on account of restricted rainfall leading to sooner than regular gross sales.

In Southern Alberta, a pen of medium to bigger body, decrease flesh, 1,000-pound blended steers on silage and complement ration with full processing data have been valued at $398/cwt fob feedlot. On the identical feedlot, a pen of 950-pound blended heifers on the identical food plan with full well being data have been quoted at $385/cwt fob feedlot.

In Central Alberta, smaller teams of 800-825 pound blended steers with medium flesh ranges (gentle grain and silage food plan) and unknown processing have been quoted from $450/cwt to $465/cwt. The Westlock market report had a smaller bundle of black heifers off grass averaging 855 kilos with restricted processing buying and selling for $420/cwt.

The Ponoka market report (video sale) had a bigger group of tan steers with a base of 620 kilos off grass, minerals and cows with full processing information promoting for $610/cwt fob feedlot in east-central Alberta for late October supply. On the identical sale, a bundle of 200 tan heifers with a base weight of 590 kilos off grass, mineral and cows with full preconditioning bought for $566/cwt for October supply.

Public sale markets reported restricted volumes with many barns promoting 150-250 head. The market was laborious to outline and never consultant of costs that shall be evident subsequent month. Small teams of steers of varied high quality averaging 500-525 kilos have been quoted from $600-620/cwt. The prior week, bigger steer calf packages for November supply coming off grass of comparable weight have been promoting for $670/cwt to as excessive as $699/cwt.

Analysts are forecasting a U.S. corn crop of 410 million tonnes, up from final 12 months’s output of 378 million tonnes. U.S. corn will commerce into Alberta, presumably as far north as Edmonton and displace barley. This can take about 20-30 cents off the cost-per-pound achieve. Decrease feed grain costs this fall will improve the value of feeder cattle by $20-$25/cwt.

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