Klassen: Feeder market in consolidation mode

Feeder values in West showing premium over U.S.

 

By Jerry Klassen, GFM Network News, Columnist

via Canadian Cattlemen - June 7, 2021

 

Compared to last week, western Canadian feeder cattle prices were quite variable depending on the weight category. Replacement cattle weighing over 800 lbs. were steady to $4 lower while feeders weighing 700-800 lbs. traded steady to $4 higher on average. Feeder cattle under 600 lbs. were unchanged from seven days earlier.

 

The fed cattle market appears to be quite soft for late August and September, which has weighed on shorter keep replacements. Feeders under 800 lbs. are percolating higher in line with deferred fed cattle futures. Keep in mind these feeders will also have a lower cost per pound gain with the bulk of the weight from new-crop feed grains.

 

The quality last week was once again quite variable. Late-blooming stragglers were heavily discounted. Markets were characterized by small groups with many singles running through the ring. However, there was no shortage of buying interest on good-quality feeders and major feedlot operators were very aggressive on 700- to 800-pounders.

 

In central Alberta, larger-frame Simmental-blended steers weighing just over 850 lbs. coming off small grain ration on full health program were quoted at $185...

 

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