Compared to last week, western Canadian yearling prices climbed $2-$4 on average. Calf markets were unchanged. For the second week in a row, the market was hard to define due to limited numbers on offer. Small packages under five head and single stragglers were common. Larger groups of green thin yearlings were well bid by major feeding operations and buyers had to be aggressive. Early yearlings tend to have above-average feedlot performance. Some backgrounded cattle are available but appear to be trading direct off farm to finishing operation. Most of these backgrounders are on forage diet only with limited grain intake. These cattle traded at a small discount to those fresh off grass.
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Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Pasture conditions are excellent across the Prairies, with only certain pockets in southern Saskatchewan facing moisture concerns. This will delay the feeder marketing schedule and enhance demand in nearby positions. The backgrounding operator is going after the feather-light calves which are reasonably priced with limited competition. Some regions of Alberta have experienced too much rain. Ranchers are moving some yearling volume and vulnerable pee-wee calves.
In the Lethbridge area, lower-flesh larger-frame black heifers weighing 950 lbs. were valued at $185 and black heifers averaging 875 lbs. were quoted at $198. In southern Alberta, cattle buyers were quoting higher-quality steers weighing 900-950 lbs. off grass in the range of $212-$218, but didn’t release details due to confidentiality. In central Alberta, a couple tan steers weighing 930 lbs. dropped the gavel at $190 while tan mixed heifers weighing 835 lbs. were valued at $197. In central Saskatchewan, a couple of mixed steers weighing 830 lbs. were quoted at $209. West of Edmonton, a group of three mixed steers weighing just under 800 lbs. were quoted at $210. The yearling market was mixed based on quality but definitely stronger on one iron larger yearling packages.
In southern Manitoba, a small group of mixed steers weighing 640 lbs. reached up to $245 and heifers weighing 620 lbs. were quoted at $200. In central Saskatchewan, a handful of mixed black steers weighing 530 lbs. were reported at $251 and a couple black steers weighing 630 were quoted at $235. In central Alberta, a group of five mixed red heifers averaging 510 lbs. reportedly traded at $214.
Weaker feed grain prices are the main factor driving the feeder market higher at this time. According to Statistics Canada, farmers seeded seven million acres of barley this spring. Using a five-year average yield, production has potential to come in at 9.7 million tonnes, up from the 2021 crop size of 6.9 million tonnes and up from the five-year average of 9.2 million tonnes. The wheat crop in eastern Saskatchewan and Manitoba is one month behind normal development. There is a high probability that Western Canada will have five to seven million tonnes of actual feed wheat that will trade into domestic feed channels.
— 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.
