Klassen: Feeder market returns to historical highs

For the week ending April 12, Western Canadian feeder cattle markets traded stead to as a lot as $10 larger in comparison with seven days earlier. The market has totally recovered from U.S. tariff uncertainty. Power within the fed cattle market and wholesome feeding margins proceed drive substitute costs upward.

Alberta packers had been shopping for fed cattle within the vary of $470-$475/cwt. Utilizing a 60 per cent grading, this equates to a stay value of $282-$282/cwt. In Ontario processors had been exhibiting bids from $480/cwt to $485/cwt. Break-even pen closeouts in Alberta are within the vary of $255-$265/cwt fob feedlot whereas profitability begins in Ontario at $253/cwt.

U.S. grains: Wheat up on US Plains dryness, soybeans fall on profit taking

Chicago wheat futures rose on Thursday, supported by concerns that forecasted rain will not be enough to alleviate dryness in some U.S. wheat production regions, analysts said.

There seems to be pent up demand for feeder cattle after feedlot operators delayed purchases of replacements previous to the April 2 tariff announcement. Ontario demand seemed to be quieter this week.

North of Saskatoon, backgrounded Angus cross steers on mild barley, pellet and silage ration with full processing knowledge scaled at 1,000 kilos had been valued at $365/cwt fob feedlot. On the Ponoka sale, Limousin steers on backgrounding barley ration with full processing data averaging 984 kilos offered for $360/cwt within the ring. South of Calgary, Charolais medium flesh backgrounded heifers set at 850 kilos traded for $358 fob feedlot.

In central Alberta, a smaller package deal of medium body, blended steers averaging simply over 800 kilos supposedly traded for $810. The Ste Rose Public sale Mart in Manitoba had package deal of Charolais heifers with imply weight of 825 kilos valued at $381.

Within the Calgary area, medium to bigger body black steers carrying lighter butter weighing simply over 700 kilos offered for $465. In the identical area, crimson blended heifers with medium to decrease flesh on the cardboard at 715 kilos had been valued at $410. The Dawson Creek Public sale report had a small package deal of black steer calves weighing 668 kilos notching the board at $463 and a handful of black heifer calves with a imply weight of 688 kilos promoting for $392.

Calves weighing beneath 625 kilos had been fairly variable throughout the prairies with singles and teams beneath 5 head buying and selling at a reduction to common values. The St Rose Public sale Market Report had a smaller package deal of Charolais heifers weighing simply over 601 kilos marked at $498. On the identical sale, Charolais steers weighing 591 kilos traded for $529. In central Alberta, a smaller group of Angus cross heifers weighing 642 kilos had been quoted at $440 and Simmental primarily based steers with a imply weight of 635 kilos had been valued at $505.

In central Alberta, Charolais steers averaging 500 kilos had been final bid at $580 and in central Saskatchewan, British primarily based steers on the cardboard at 502 kilos had been quoted at $558. The Westlock market report had a pair of black steers weighing 356 kilos shifting by way of the ring at $610.

U.S. feeder cattle costs had been barely softer this previous week buying and selling $2 to $4 decrease in comparison with the earlier week. Stay cattle costs in Kansas and Texas had been quoted at US$204/cwt, down US$4/cwt from seven days earlier. U.S. markets had been softer however Canadian costs had been agency. This can be a crimson flag that the market is popping.