Compared to last week, western Canadian yearling prices traded $3-$5 lower while calf values were relatively unchanged. The market was slightly softer early in the week. On Wednesday, Alberta packers renewed fed cattle bids similar to week-ago levels and the aggressive buying lifted calf prices back up to levels similar to seven days earlier.
Adverse weather conditions across the Prairies didn’t temper buying enthusiasm. Major feedlot operators were actively securing ownership across all weight categories. There was a cautious tone on yearlings but quality packages experienced limited slippage. We’re entering the period when fleshier types come on the market. Unweaned bawlers were discounted accordingly while pre-conditioned vaccinated groups were well bid. Larger volumes are coming on the market and with that surge in supply, the variable in quality increases. Backgrounding operators were picking away at off-type cattle and bull calves. Some care and processing can bring these cattle up to quality backgrounding standards. The weaker Canadian dollar has been supportive.
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Northwest of Winnipeg, late-blooming Charolais yearling steers off grass weighing 911 lbs. traded for $308 and mixed heifers weighing 835 lbs. dropped the gavel at $289. There were limited yearlings on offer last week.
In central Alberta, Charolais-Simmental blended steers weighing 830 lbs. coming off cows and grass diet with full processing data averaging 830 lbs. traded for $300. At the same sale, tan heifers off cows and grass with full health records carrying 773 lbs. were last bid at $283. In Lloydminster, medium- to larger-frame black weaned steer calves weighing around 790 lbs. were reported to have sold for $315.
In Manitoba, Simmental-blended steers off cows and grass diet weighing 640 lbs. silenced the crowd at $355 and similar-quality heifers averaging 630 lbs. moved at $303. In central Saskatchewan, tan semi-weaned steers weighing 672 lbs. reportedly sold for $356. South of Edmonton, red Angus-mixed semi-weaned steers weighing a shade over 600 lbs. notched the charts at $349. In the Saskatoon area, silver heifers weighing 580 lbs. were last quoted at $310.
In central Alberta, black Limousin-mixed calves weighing just over 500 lbs. supposedly traded for $425. In Meadow Lake, a larger group of black steers weighing 500 lbs. traded at the psychological level of $400 and black heifers weighing 505 lbs. moved through the ring at $323. Northwest of Winnipeg, black steers with a scale weight of 422 lbs. were valued at $477.
Basis levels for calves have strengthened with the weaker futures market. The January feeder futures are down $30 from the recent highs but the cash market for calves in Western Canada hasn’t missed a beat.
— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.
