Compared to last week, western Canadian yearling prices were steady to $2 higher. Calves traded steady to $10 lower in Alberta while markets in Saskatchewan and Manitoba were quoted $5 lower to $2 higher.
Adverse weather resulted in a softer tone for calves with Lethbridge temperatures dipping to -25 to -33 C last week. The market appeared to incorporate a risk discount due to health risks. Southern Alberta feedlot operators focused on local cattle and some larger operations were on the sidelines. In Manitoba, weather conditions were typical for fall and it was only on Friday that snow hampered feedlot operations. Heavier calves and pre-conditioned packages held value with week-ago levels but groups straight off their mothers were discounted. Buying interest from Ontario reached across Western Canada while U.S. interest was limited. Large wide-frame calves with Limousin-type genetics were well bid from Ontario feedlots. Compared to past years, there appears to be a large volume of unweaned calves at this time of year. This made the market hard to define in some cases because quieter packages traded at a premium over average values.
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Yearling supplies are limited but there were some small packages available in Saskatchewan and Manitoba. Northwest of Winnipeg, larger-frame black steers off grass weighing a shade over 1,000 lbs. sold for $227 and their younger brothers averaging 825 lbs. were quoted at $244. In central Saskatchewan, medium- to larger-frame Simmental-blended steers off grass weighing 912 lbs. were valued at $234 and similar-quality heifers averaging 835 lbs. charted the board at $201. In central Alberta, black heifers averaging just over 1,000 lbs. silenced the crowd at $195 and mixed steers weighing 821 lbs. dropped the gavel at $234.
In northwestern Manitoba, Charolais steers weighing 705 lbs. were bid up to $255 while red mixed medium-frame crossbreed steers averaging 688 lbs. were valued at $244. In east-central Saskatchewan, Angus based short-weaned steers scaled at 620 lbs. sold for $270 and similar-quality heifers just over 600 lbs. were quoted at $228. Near Lethbridge, Simmental-based steers with full health records straight off their mothers and weighing 670 lbs. charted the board at $242.
North of Calgary, a smaller group of red mixed steers straight off their mothers with full health data averaging 590 lbs. dropped the gavel at $256. Southeast of Calgary, bawling tan heifers with on full health program with records and weighing 490 lbs. were valued at $237. In southwestern Saskatchewan, black mixed steers weighing 540 lbs. were valued at $285. In southern Manitoba, black Limousin mixed steers at 520 lbs. reached up to $295. Northwest of Winnipeg, a small group of black and red steers weighing 420 lbs. touched the clouds at $330.
Strength in the Canadian dollar along with the weaker live cattle futures also contributed to the week-over-week drop in the feeder market. The positive feeding margin structure for the spring of 2023 appears to be evaporating. Many feedlots are still backed up with market-ready supplies of fed cattle and this supply problem will only be alleviated in January.
— 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.
