Compared to last week, Western Canadian yearling markets once again jumped $3-$5/cwt on average. Higher quality 900-pound steers are reaching up to the range of $310-$315/cwt. Comments from readers suggest that 850-900-pound steers are trading up to $315-$320/cwt. Calves in the 500-550-pound range are reaching just over the $400/cwt level.
Dryer conditions in Saskatchewan and certain regions of Alberta are causing yearlings to move off grass sooner than expected. Hay and straw will be in tight supply this winter. Cow calf producers are starting to prepare now while planning their marketing schedule for calves and yearlings. Higher prices for cull cows and cow calf pairs appears to have spurred on herd liquidation for some producers. The market should be encouraging expansion but we’re not seeing any signals of heifer retention.
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South of Edmonton, Charolais blended steers with full health records on pasture diet averaging 1,060 pounds reached up to $287/cwt. In the same region, a handful of mixed heifers weighing just under 900 pounds off grass sold for $283/cwt. North of Saskatoon, medium to larger frame steers straight off pasture with a scale weight of 870 pounds sold for 317/cwt. Southeast of Saskatoon, Angus based heifers weighing 810 pounds silenced the crowd $295/cwt.
East of Edmonton, medium frame black Limousin mixed steers with full processing data off grass weighing 740 pounds were valued at $320/cwt. From the same farm, similar quality heifers averaging 720 pounds dropped the gavel at $300/cwt. In Central Saskatchewan, black mixed steers weighing 705 pounds were last bid at $329/cwt. In east-central Saskatchewan, larger frame tan heifers weighing 710 pounds were valued at $302.
Calf volumes were limited which made the market hard to define. In Central Alberta, Hereford mixed long-time weaned steers weighing 560 pounds were were purchased for $368/cwt. In the same region, a small group of Angus based short-weaned heifers with full processing records averaging a shade over 500 pounds set the bar at $318.
U.S. markets appear to be leading Canadian values higher. For example, higher quality steers averaging 850 pounds in Bassett Nebraska were quoted at US$260 which equates to Cd$340/cwt. Feeder cattle exports to the U.S. are running 38% below year-ago levels. The Canadian market needs to trade at a premium to U.S. values so we can expect additional upside in Western Canada.
— 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.
