Compared to last week, western Canadian calves were trading $4 to as much as $8 higher. Adverse weather did not influence the market this week. There appeared to be a surge in demand across all weight categories.
Higher quality or pre-conditioned vaccinated, weaned, lower flesh calves in the 600–700-pound category were up as much as $12 in certain pockets. Heifers also garnered more attention this week and the discount to steers appeared to narrow $2-$4. Packages of calves under 550 lbs. were well bid as prices were creeping over the psychological $300 level. Strength in deferred live cattle futures was supportive for the overall feeder complex. The Canadian dollar also deteriorated late in the week, contributing to the stronger buying interest. Alberta fed cattle prices were slightly higher this week. The backlog of market-ready fed cattle supplies in Alberta is slowly being alleviated. Average steer carcass weights are down about 20 lbs. from 30 days ago. Finishing feedlots were anxious to secure ownership this past week. There appears to be strength percolating in major U.S. markets which spilt over into Western Canada.
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South of Edmonton, lower flesh mixed yearling steers on forage diet with full health data weighing 928 lbs. dropped the gavel at $220. In the same region, mixed heifers weighing just over 900 lbs. charted course at $214. East of Edmonton, Angus-based yearling steers with medium to lower flesh weighing 910 lbs. silenced the crowd at $228. In southern Alberta, lower-flesh Charolais-blended steers weighing 820 lbs. were valued at $240 and similar-quality heifers averaging 805 lbs. were quoted at $222.
In central Saskatchewan, larger-frame Simmental-blended steers on the thinner side weighing 745 lbs. set the chart at $249. In southwestern Manitoba, medium- to larger-frame black semi-weaned steers weighing 630 lbs. were quoted at $274 and mixed heifers averaging 640 lbs. were valued at $228.
At Beaverlodge, Alta., a handful of Angus-based steers which scaled at 570 lbs. were valued at $287 and mixed heifers averaging 520 lbs. were valued at $229. South of Edmonton, black Limousin-based steers weighing a shade over 500 lbs. reached up to $314. East of Saskatoon, Charolais mixed steers weighing 435 lbs. were reported at $328; west of Edmonton, black steers weighing 400-425 lbs. were recorded at $322.
Finishing feedlot operators are expecting a bullish Cattle on Feed report on Friday (Dec. 23) from the U.S. Department of Agriculture. Last week, USDA’s WASDE (world agricultural supply and demand estimates) report had first-quarter beef production at 6.7 billion lbs., down 300 million lbs. from the first quarter of 2022. This lower production estimate would require a sharp year-over-year decline in placements, especially in the heavier weight categories. This may have contributed to the stronger buying interest for feeder cattle on both sides of the border.
— 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.
