Western Canadian yearling prices were relatively unchanged from week-ago levels, however, feeder cattle fit for grass and calves dropped $4 to as much as $10 from seven days earlier according to a report at Grainews. Rising feed grain costs appear to be affecting lighter weight categories more than the yearling market. Feedlots will be struggling with negative margins through the summer months, which will result in lower prices for yearlings in August and September.
At the auction ring, the buying crowd was rather small, with most feedlots sitting on their hands. Buyers held scale-down orders and were surprised how soft the market became late in the week. Eastern Canadian demand was subdued; therefore, all Prairie markets were dependent on buying interest from Alberta. Sharp discounts were noted on fleshier and smaller-frame cattle. Adverse weather once again plagued most of Western Canada. Feedlot operators are waiting until pen conditions improve before increasing ownership.
Read the full report here.
