Klassen: Feedlot operators become cautious on purchases

For the week ending Might 10, Western Canadian feeder cattle markets traded regular to $5 increased on common. High quality packages of lighter calves have been priced $10-$15 above week in the past ranges. Many public sale barns are solely holding gross sales each two or three weeks at the moment of yr with restricted numbers on supply. This made the market exhausting to outline in sure weight classes.

Ontario shopping for curiosity has subsided, whereas some operations from Alberta have additionally halted purchases in the meanwhile. The feeder market is functioning to ration demand. Costs are actually excessive sufficient in order that feedlots are backing away from the market.

On the Ponoka sale, medium to decrease flesh Charolais Angus blended steers on corn silage and grain screenings eating regimen with full processing data averaging 993 kilos traded for $379.

On the identical sale, a handful of bigger body pink Angus primarily based steers weighing 882 kilos with full feeding and processing information notched the board at $401.  In central Alberta, bigger body Simmental primarily based heifers with numerous flesh ranges weighing a shade over 900 kilos on gentle grain and silage eating regimen have been valued at $370 fob farm.

In southern Alberta, broad body decrease flesh black Limousin primarily based steers weighing 805 kilos apparently traded for $451. In the identical area, Simmental cross heifers averaging 802 kilos have been quoted at $405.

On the Rimbey sale, a handful of Charolais Simmental cross steers on silage and hay eating regimen with preconditioning well being with a imply weight of 743 kilos set the bar at $464. In southern Alberta, high quality genetic packages of steers weighing 700 kilos have been quoted from $480-$495.

Within the Calgary area, a smaller package deal of  combined steers weighing with a imply weight of 600 kilos traded for $560. On the Vermillion sale, there was a bigger group of heifers averaging 614 kilos that traded for $536/cwt.

On the Westlock sale, a smaller package deal of Angus combined heifers on silage and hay eating regimen with full herd well being data averaging slightly below 500 kilos offered for $570. On the identical sale, a smaller package deal of run-of-the-mill steers evaluated at 492 kilos silenced the group at $599.

Alberta packers have been shopping for fed cattle on a dwell foundation at $292-$294/cwt fob feedlot, unchanged from final week. Present breakeven pen closeouts are within the vary of $260-$265. Whereas margins are favorable within the brief time period, feeders coming into the feedyards this week don’t pencil profitably.

The October dwell cattle futures have been hovering round $206 which is a $12 low cost to the close by U.S. money market. If the deferred dwell cattle futures don’t strengthen by US$15, southern Alberta losses throughout October are going to be within the vary of $300-$400 per head.  Evidently there’s a honest quantity of danger proudly owning replacements on the present ranges.

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