Compared to last week, western Canadian yearling markets traded $2-$3 on either side of unchanged. Replacements weighing 650-800 lbs. appeared to traded steady to $4 higher while calves under 650 lbs. were steady to $4 lower. The cost per pound gain is reaching unprecedented levels and fleshier cattle were discounted quite severely in some cases. Prices for backgrounders have been bid up so that feeding margins in the deferred positions barely cover variable costs. The market for yearlings has likely run the course for the time being. Calves were quite variable across the Prairies. Genetics are having a larger influence on the price structure for calves heading straight to the feedlot. Demand for grassers was considered lacklustre at best. Buying interest from the U.S. and Ontario caused calf prices in Manitoba to trade at a premium to Alberta values. In Alberta, many feedlots are short pen checkers and hands for processing.
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In southern Alberta, larger-frame medium- to lower-flesh Angus blended steers on light grain ration with full health records weighing 940 lbs. were valued at $239. North of Lethbridge, medium- to larger-frame black heifers weighing just over 900 lbs. with lighter flesh were traded hands at $224. South of Edmonton, tan steers with medium to lower flesh levels weighing 880 lbs. were purchased for $242. Northwest of Winnipeg, black steers with medium to lower flesh weighing 950 lbs. were bid up to $240 and similar-quality heifers weighing 935 lbs. notched the board at $213.
In central Alberta, larger-frame lower flesh tan steers recorded at 810 lbs. charted course at $258 and similar-quality 740-lb. steers were valued at $283. In central Saskatchewan, Simmental-blended steers weighing 715 lbs. silenced the crowd at $274 and red heifers weighing 750 lbs. were quoted at $233.
North of Brandon, Charolais steers weighing 580 lbs. reached up to $339 and red steers weighing 650 lbs. set the board at $307. In the same region, Charolais heifers averaging 514 lbs. set the board at $280. In central Saskatchewan, larger-frame black mixed steers weighing 510 lbs. were quoted at $330 and similar-quality heifers weighing 515 lbs. were quoted at $275. North of Calgary, Simmental mixed steers weighing 580 lbs. were quoted at $308 and similar-quality and -weight heifers reportedly sold for $260.
Deferred live cattle futures are trading near historical highs, which has been supportive for feeder cattle prices; however, corn and barley markets have potential to strengthen in the spring and summer, which is tempering the upside.
