For the week ending January 11, Western Canadian feeder cattle prices were up $15-$20/cwt compared to the week ending December 21, 2024. In eastern Saskatchewan and Manitoba, quality packages of steers 800 pounds and over traded $20/cwt to $25/cwt higher compared to three weeks earlier.
On Friday, January 10, wholesale choice beef traded at US$333/cwt which was a fresh 52 week high. This past week, Alberta feeding margins improved with fed cattle prices reaching $270 fob feedlot in Southern Alberta for nearby delivery. It appears there are profitable margins on cattle that were placed last fall. Feedlot operators are being aggressive to reload with noted Ontario demand in the eastern Prairie regions.
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South of Edmonton, Simmental Gelbvieh blended steers averaging 950 pounds on light barley and hay diet with full processing data sold for $360. East of Edmonton, black mixed heifers on light grain and silage diet weighing 955 pounds were valued at $325. At the Heartland sale in Yorkton, tan steers weighing 865 pounds dropped the gavel at the psychological $400/cwt level. Yorkton is one of the last auction markets in Western Canada for direct transport (without unloading stopover) for Ontario feedlots. Prices at this auction were $15-$20 premium over Alberta in some cases. For example, in central Alberta, Simmental Angus blended steers weighing 864 pounds coming off light grain and silage diet with full processing were last bid at $376.
Near Calgary, tan weaned steers weighing 700 pounds were valued at $458. In Central Alberta, Simmental mixed red heifers averaging a hair under 700 pounds silenced the crowd at $400. At the Westlock sale, Angus Simmental blended steers weighing just over 600 pounds on barley and silage diet charted course at $482.
The market report from the North Central Livestock Exchange in Clyde had higher quality 500 pound steers reaching up to $571. A buyers report from central Alberta had tan heifers averaging 540 pounds trading for $460. At the Whitewood auction on January 7, black steers weighing a shade under 500 pounds sold for $547 and a handful of red heifers with a mean weight of 553 pounds supposedly sold for $400.
The April live cattle futures reached $199.70 on Friday which would result in an Alberta cash price of $283-$285 for March and April. Alberta break-even pen closeouts for April are around $260-$265. Feedlots will bid up the price of replacements until there is no margin. Feeder cattle value jumped about $200-$250 per animal over the past week.
— 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.
