Compared to last week, western Canadian yearling prices were steady to $2 lower on average while calves traded steady to as much as $4 lower in certain regions; calves under 550 pounds were quoted $3-$6 below week-ago levels.
Barley and wheat prices continue to percolate higher, causing a defensive sentiment amongst buyers. Southern Alberta and parts of central Alberta were contending with adverse pen conditions last week which caused buyers to shy away from the lighter weight categories. Feedlot operators were also focusing on local cattle with some large presort sales in the major feeding regions. Flesh conditions on calves appear to be increasing at this time of year despite limited forage supply. Cow-calf operators are facing historically high forage prices and liquidating calves sooner than normal. Compared to other years, buyers report there are more calves under 550 lbs. on offer. The farmer-cattle producer is on the sideline as the market is experiencing consequences of “drought hangover.”
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In central Alberta, a small group of medium- to larger-frame steers on light grain ration with full health records weighing 940 lbs. dropped the gavel at $176; in Manitoba, Charolais-based steers weighing 855 lbs. with medium flesh were quoted at $188 and medium-frame red heifers averaging 850 lbs. were quoted at $175. In central Saskatchewan medium- to larger-frame Angus-blended steers weighing 850 lbs. were quoted at $186. Yearlings coming on stream have some grain incorporated in the rations in most cases. Prices ranges for 800- to 900-pounders were quite variable, with “run of the mill” quality trading as much as $10 below average values quoted above.
Calves were firm in the eastern Prairie regions but extremely soft in Alberta and southern pockets in Saskatchewan. In Manitoba, a small group Charolais-based steers weighing a shade under 600 lbs. were quoted at $207 and similar-quality and -weight heifers were valued at $179. In southern Saskatchewan, black mixed steers weighing 510 lbs. straight off their mothers were valued at $215. South of Edmonton, a small group of Angus-based steers straight off their mothers weighing 540 lbs. were quoted at $198 and similar-quality 500-lb. heifers were valued at $174. East of Calgary, unweaned mixed steers weighing 445 lbs. were valued at $222 landed in the feedlot.
The Alberta fed cattle market jumped $5 on a dressed basis last week with packers showing bids from $260-$262 delivered. Cattle-on-feed inventories are nearly 20 per cent above year-ago levels and there is a fair amount of fed cattle to come on the market in the short term.
— 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.
