For the week ending February 10, Western Canadian the market for yearlings over 800 pounds was $3/cwt to $6/cwt compared to a week earlier. Feeder cattle suited for grass and calves were up $8/cwt to as much as $25/cwt in some cases compared to the week prior. Quality steers averaging 600 pounds were readily trading in the range of $410-$425 up from the range of $380-$395 last week.
Canadian values appear to be one week behind the U.S. market with cash values south of the border setting fresh records. Buyers are still digesting the USDA’s January 1, Cattle Inventory Report. The nearby feeder market and the deferred live cattle futures are incorporating a risk premium due to the uncertainty in beef production in the latter half of 2024.
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Order buyers were once again receiving “just get’em” type orders which which resulted in a flurry of emotional buying behavior. Strong buying interest was noted from three sectors including Ontario, Southern Alberta and main U.S feeding regions.
In Central Alberta, larger frame Simmental steers carrying medium flesh levels on light grain and forage diet with full health data averaging 928 pounds reportedly sold for $303. South of Calgary, tan steers on the card at 870 pounds with medium to thicker butter averaging just over 800 pounds apparently traded for $330. Near Lethbridge, larger frame black steers with medium flesh levels with weight a shade over 900 pounds were last bid at $332. North of Saskatoon, a larger group of mixed heifers averaging 925 pounds on grain and silage diet with full processing data dropped the gavel at $286.
Southeast of Saskatoon, a larger group of Angus blended weaned steers with a scale weight of 715 pounds were valued at $368. South of Edmonton, larger frame Charolais mixed heifers with full weaning period and health data on hay diet supposedly traded for $313. North of Calgary, black mixed weaned steers on forage diet recorded at 600 pounds reportedly notched the board at $405. North of Brandon, Angus based steers weighing 590 pounds supposedly moved through the ring at $415 while similar quality heifers on the card at 540 pounds set the bar at $375.
On the Lloydminster market report, tan steers weighing 517 pounds were recorded at $443. Closer to the Manitoba border, a buyer reported a small group of black steers averaging 510 pounds apparently sold for $458. In Southern Alberta, red and white face steers weighing 490 pounds reportedly dropped the gavel at $460. In Central Alberta, higher quality genetic mixed heifers on barley silage and light grain diet with full health records averaging 550 pounds apparently sold for $362.
Buyers have shrugged off economic jitters with equity markets trading at or near all time highs. Stronger than expected jobs data along with ongoing wage growth tells there is no sign of slowing consumption. Parking lots at steak houses are still full for dinner and McDonald’s stock remains near 52 week highs.
— 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.
