Compared to last week, western Canadian yearling prices were steady to $3 lower on average; calves were relatively unchanged but limited numbers were on offer. Strength in the Canadian dollar appeared to temper demand from south of the border in the 750-plus-lb. weight categories. Last week was the first full week of sales in both Canada and the U.S. Ontario buying interest was evident at certain sales, but this wasn’t sufficient to sustain last week’s price levels.
The Alberta fed market was quoted at $154 f.o.b. the feedlot, down $8 from last week. Alberta feeding margins are deep in red ink, which was the main factor weighing on the yearling market. The quality of replacements was quite variable. Buyers were extremely finicky on flesh levels and diets. The weather was more conducive for transportation, but larger sales in central Alberta appeared to set the price structure. Manitoba markets traded at a $6-$8 discount to central and southern Alberta. The calf market was relatively flat across the Prairies. Barley and corn prices appeared to notch higher, which also contributed to a softer tone.
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A small group of larger-frame Angus-blended heifers with medium flesh averaging 920 lbs. were quoted at $183 south of Edmonton; west of Edmonton, a larger group of Charolais-based steers weighing 850 lbs. dropped the gavel at $198. In northwestern Manitoba, a small group of mixed medium-frame steers with heavier butter weighing 830 lbs. were quoted at $192. North of Lethbridge, a group of medium- to larger-frame tan steers with a light coat of gravy weighing 875 lbs. with full health records were valued at $195 landed in the feedlot. In central Saskatchewan, Simmental-mixed steers with medium to heavier flesh weighing 830 lbs. were quoted at $187.
In southern Alberta, short-weaned Hereford-based steers weighing 625 lbs. were valued at $210 and similar-quality 590-lb. heifers were quoted at $190. In southwestern Manitoba, a small group of black white-face steers weighing 540 lbs. were valued at $240 and similar-quality heifers weighing 525 lbs. were reported at $195. In south-central Saskatchewan, Charolais-based steers weighing 635 lbs. were quoted at $219.
Feedlots want shorter-keep replacements to come on the market prior to the end of May. Cattle that will be ready in June through August are softer due to the weaker live cattle futures for the summer months. Feedlot operators that booked their feed grain requirements earlier in fall were more aggressive. Every feedlot appears to have its own set of economics this year because of the wide range of forage and feed prices and availability.
— 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.
