Klassen: Canadian feeder market rationing demand

May 30, 2023

For the week ending Saturday, western Canadian feeder markets averaged $3-$6/cwt higher compared to seven days earlier. Weakness in the Canadian dollar along with strength in the deferred live cattle futures set a positive tone. Recent rains have enhanced yield potential for the Canadian barley crop, which also underpinned nearby cash values. Alberta packers were buying fed cattle around $238/cwt delivered. Feeding margins have improved over the past month and finishing operators are anxious to reload. Calves under 600 lbs. were well bid, with top-quality packages gaining $6-$8/cwt on weekly basis. It appears we’ll eventually see 500-lb. calves trade at $400/cwt. In my straw poll survey, cow-calf producers in Alberta need $2,000 for a 500-lb. steer calf in order to encourage expansion.

In central Alberta, larger-frame medium-flesh steers on light grain ration with full health data weighing just under 1,000 lbs. charted course at $257 and similar quality 900-pounders silenced the crowd at $283. In central Saskatchewan, Angus-based steers with soft butter weighing 825 lbs. were valued at $292 while their sisters averaging 810 lbs. were bid up to $260.

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