Compared to last week, western Canadian yearling markets traded $3-$5/cwt lower on average although limited numbers made the market hard to define. Calf markets traded $4-$8/cwt on either side of unchanged. It appeared that 700-plus-lb. calves were up $4 to as much as $8.
The variation in the price structure was due to the adverse weather. Major feedlot operators were more aggressive on longer-term weaned calves with processing records. Fleshier unweaned calves traded slightly below week-ago levels but there was limited slippage. Manitoba and eastern Saskatchewan markets appeared to reflect a premium over major Alberta auctions. Once again there was very strong demand from Ontario and these orders gave the crowd a shot of adrenalin. One buyer commented that when certain packages made fresh highs, a scarcity fear seemed to cloud over the room, resulting in a firmer tone on the next run. There was no scrutiny on the price structure as “just get’ em”-type orders were evident, especially on some peewee calves.
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Southeast of Calgary, medium- to larger-frame red mixed steers with some butter covering weighing 930 lbs. apparently sold for $288. In the same region, larger-frame lower-flesh Angus-based yearling steers coming off grass and hay diet weighing 822 lbs. were valued at $322. In central Saskatchewan, Simmental-based steers with medium flesh weighing 875 lbs. were reported to have traded for $300.
At Lloydminster, red weaned steers on the card at 749 lbs. apparently traded for $343. Northwest of Winnipeg, Charolais-based steers weighing 772 lbs. dropped the gavel at $339 and Charolais heifers weighing 676 lbs. silenced the crowed at $310.
In Ponoka, red Limousin steers off cows and grass with full processing data averaging 630 lbs. notched the board at $361. At the same sale, black Angus-based semi-weaned heifers weighing 661 lbs. off cows grass and hay sold for $300. In central Saskatchewan, tan steers appearing to be short weaned off their mothers weighing 605 lbs. traded for $371.
South of Edmonton, black mixed steers weighing 565 lbs. coming off a diet of cows and silage with full health records were purchased for $376. In Manitoba, Angus-based steers weighing a shade over 500 lbs. were reported to have sold for $415 and Charolais heifers on the card at 566 pounds were last bid at $336. In central Saskatchewan, Simmental-based steers weighing 450 lbs. reportedly traded for $443 and their younger brothers in a group averaging 400 lbs. set the chart at $493.
Alberta packers were buying fed cattle on a dressed basis at $390/cwt delivered, unchanged from last week. The Alberta fed cattle basis over the winter could deteriorate similar to last year causing margins to move into negative territory. For March, the break-even pen closeout value is around $265/cwt. On Friday, the best one can hope for, given the April live cattle futures, was $250/cwt.
— 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.
