Compared to last week, western Canadian yearling markets were relatively unchanged. Yearlings straight off grass were very well bid and prices held value. Yearlings over 800 lbs. on light grain ration were quoted $15-$20 discount to those cattle coming straight off pasture. We’re seeing heavier calves around 800 lbs. trade at $330-$340. Increased calf numbers are limiting the upside for yearlings as more auction barns in Manitoba and Saskatchewan held their first sales of the season. Steer calves in the range of 500-550 lbs. were breaking above the psychological $400 level in southern Alberta.
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The feed barley harvest is well underway in Alberta and Saskatchewan and lower feed grain prices contributed to the firm tone. Alberta packers were buying fed cattle on a dressed basis at an average price of $388-$390/cwt delivered, unchanged from seven days earlier. There is significant open demand for feeder cattle and feedlots have experienced favourable margins over the past couple of months. One couldn’t ask for a more favourable market environment for the feeder complex.
In central Alberta, larger-frame Simmental-based steers coming off pasture with full processing data weighing 920 lbs. dropped the gavel at $320. South of Edmonton, heifers with the same genetics including health records weighing a shade over 900 lbs. notched the charts at $305. Northwest of Winnipeg, Angus-based steers weighing 972 lbs. off grass sold for $332 and red steers weighing 816 lbs. reached a new high of $354. Strong buying interest was noted from Ontario and there’s a big corn crop in Eastern Canada. In southwestern Saskatchewan, black mixed steers weighing 820 lbs. were quoted at $338. In southern Alberta, tan heifers averaging 825 lbs. were valued at $320.
In Manitoba, a smaller group of red steers on the card at 740 lbs. moved through the ring at $339 and Charolais heifers averaging 730 lbs. traded at $307. In southern Alberta, short-weaned black steers weighing 630 lbs. set the bar at $360. Northwest of Winnipeg, red steers weighing in with scale reports at 600 lbs. reached up to $378. In the Calgary region, weaned mixed heifers off grass weighing 650 lbs. reportedly sold for $310. In the Lethbridge area, Charolais-blended steers weighing 515 lbs. were valued at $410.
Statistics Canada released its cattle inventory survey on Wednesday (Aug. 23). On cow-calf and backgrounding operations, heifers for slaughter and steers (one year and older) as of July 1 totalled 1.176 million head. This was up 58,800 head from July 1, 2022, and was a surprise to the trade. Western Canadian calves under one year old on cow-calf and backgrounding operations on July 1 were 2.711 million head. This was down 80,000 head from July 1, 2022, and down 235,600 head from July 1, 2021.
— 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.
