Klassen: Beef demand uncertainty weighs on feeder market

For the week ending November 15, Western Canadian feeder cattle markets traded $8-$10/cwt beneath values from seven days earlier.

The money market held worth early within the week because the feeder cattle futures skilled a fortuitous bounce. Nonetheless, weaker feedlot margins and long term uncertainty relating to beef demand resulted in a softer tone within the latter half of the week.

Adversarial weather conditions plagued Southern Alberta which triggered patrons to deal with pre-conditioned, vaccinated calves. Feedlot operators additionally centered on native cattle however there have been no famous premiums within the main feeding areas in Alberta.

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The Ste Rose Public sale Mart in Manitoba had a smaller group of combined (black/tan) steers weighing 1,004 kilos that traded for $439/cwt. On the Lloydminster ring sale on Thursday, bigger body, medium to decrease flesh, Simmental primarily based steers averaging 961 kilos traded for $432/cwt. On the similar sale, medium to bigger body, unique, yearling heifers averaging 867 kilos offered for $421/cwt.

In central Alberta, a pen-sized package deal of Angus cross, short-weaned, steer calves with a imply weight of 805 kilos with full processing information and implants, coming off silage and hay weight loss program have been valued at $470/cwt fob farm. North of Calgary, a cattle producer reported a smaller package deal of black combined heifer calves averaging 800 kilos offered for $405/cwt.

The Prince Albert market report included a bunch of 17 black steers with a imply weight of 733 kilos valued at $500/cwt. On the Killarney sale, a 4 pack of combined steers averaging 701 kilos dropped the gavel at $548/cwt.

On the Westlock sale, a smaller group of Charolais cross steers coming off cows and grass with full processing information with a imply weight of 646 kilos offered for $564/cwt. In central Alberta, a smaller package deal of Charolais heifers weighing 615 kilos coming off cows and grass weight loss program with full well being information however no implants apparently offered for $535/cwt.

The Ponoka market report had a bunch of 20 crimson combined steers coming off their moms and pasture weight loss program weighing 535 kilos with full well being information priced at $650. On the similar sale, a smaller group of Charolais cross steer calves evaluated at 482 kilos notched the board at $730/cwt.

The feeder market is incorporating a threat low cost as feedlot operators anticipate the opening of the U.S. border to Mexican feeder cattle over the following six to eight months.

It seems that North American restaurant site visitors is slowing down. The U.S. is contending with rising unemployment ranges. Beef demand makes seasonal lows in January and February. Feedlot margins will transfer into unfavorable territory through the winter.