Klassen: Canadian feeder market rationing demand

Demand from Ontario remains aggressive

Reading Time: 2 minutes

Published: February 14, 2023

, ,

CME May 2023 feeder cattle (candlesticks) with 20-day moving average and CME March 2023 feeder cattle (brown O/H/L/C). (Barchart)

Compared to last week, western Canadian yearling prices were up $4-$6 while calf markets traded $6 to as much as $10 above week-ago levels.

May feeder cattle futures are trading at a $8 premium to the nearby March contract. The carrying charge in the futures market has encouraged buyers to step forward sooner rather than later. The backlog of market-ready fed cattle supplies in Alberta has been liquidated and feedlots are more current production. Strength in deferred live cattle futures was also supportive to the nearby feeder market.

Weather has been conducive for backgrounding and flesh levels have been manageable. Most cow-calf producers have sufficient forage supplies to hold their calves for a longer period. The number of light-weight calves coming on the market appears to be declining as we draw closer to spring. This has bolstered demand for 500- to 600-pounders. Demand from Ontario buyers continues to be more aggressive, especially for Limousin-type cattle. Ontario elevator bids for corn were $322 per tonne last week compared to the Lethbridge market at $445/tonne.

Read Also

Animal health worker Eduardo Lugo treats the wounds of a cow as Chihuahua ranchers intensify surveillance for the screwworm after the U.S. suspended cattle imports following the detection of the parasite in southern Mexico, at the Chihuahua Regional Livestock Union, in Nuevo Palomas, Mexico May 16, 2025. Photo: Reuters/Jose Luis Gonzalez

U.S. again halts cattle imports from Mexico over flesh-eating screwworms

The flesh-eating livestock pest New World screwworm has advanced closer to the U.S. border with Mexico, the U.S. Department of Agriculture said, prompting Washington to block imports of Mexican cattle just days after it allowed them to resume at a port of entry in Arizona.

South of Edmonton, a larger group of Simmental mixed steers carrying lower flesh levels on light grain ration with full health data averaging 970 lbs. sold for $233. In the Red Deer region, Angus-blended heifers with medium flesh on grain and silage diet weighing 930 lbs. closed bids at $213. Northwest of Winnipeg, a small group of Charolais-based steers weighing 895 lbs. silenced the crowd at $244 and similar-quality heifers weighing 830 lbs. charted the board at $226. In central Saskatchewan, Gelbvieh blended steers with medium to thicker flesh weighing 840 lbs. were quoted at $247 while in east-central Saskatchewan, thinner Charolais weighing 833 lbs. were quoted at $255.

North of Brandon, a small group of black lower-flesh steers weighing 737 lbs. reached up to $276. East of Calgary, Limousin mixed steers weighing 690 lbs. were valued at $278. In central Saskatchewan, Angus mixed steers weighing 610 lbs. stopped the crowd at $302 and mixed red heifers weighing 560 lbs. notched course at $265. In southern Alberta, black steers weighing 540 lbs. were quoted at $325 and red heifers which scaled at 500 lbs. were reported at $274. The calf market was even across the Prairies with notable premiums at any locations.

For the week ending Jan. 28, Canadian year-to-date feeder cattle exports were 9,215 head, down 33 per cent from last year. Market reports in Oklahoma had steer and heifer calves trading up $15-$20 compared to the last week of January. U.S. markets are digesting the recent cattle inventory report. Canadian prices appear to be trading at a premium to U.S. values to curb export movement.

— 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.

About the author

Jerry Klassen

Contributor

Jerry Klassen analyzes cattle, feed grain and currency markets for Canadian cattle producers. To subscribe to his weekly market outlook or consulting services, contact him at 204-504-8339.

explore

Stories from our other publications