Compared to last week, western Canadian yearling markets traded $3-$5 on either side of unchanged. Prices for 800-plus-lb. yearlings were firm in Manitoba but softened in western regions. Calf prices were relatively unchanged from week-ago levels. There were larger volumes of calves on offer with many auction barns holding feature sales. The increase in supplies limited the upside. Major feedlot operators exuded a defensive tone as the deferred live cattle futures came under pressure. Alberta fed cattle basis levels are also uncertain for the summer of 2024 as plants are hesitant to buy significant volumes eight to ten months forward. The feed grains market appears to be making seasonal lows and stronger corn prices also weighed on western Canadian calf prices. Unweaned calves were discounted accordingly while pre-conditioned weaned packages were solidly bid. Demand from Ontario was once again a key feature at certain sales.
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Buying interest for yearlings is waning. Northwest of Winnipeg, a smaller group of Charolais steers weighing 882 lbs. sold for $331. In central Saskatchewan, larger-frame mixed steers off grass weighing 830 lbs. were quoted at $320 and mixed yearling heifers weighing 860 lbs. apparently sold for $286. In southern Alberta, Angus-blended steers weighing 830 lbs. reportedly sold for $318.
In Manitoba, red mixed semi-weaned steer calves averaging 722 lbs. were quoted at $348. Northwest of Saskatoon, exotic steers on the card at 735 lbs. were said to have traded at $350 and Angus-based heifers with a scale weight of 730 lbs. were valued at $301.
Southeast of Saskatoon, Angus-based steers weighing 655 lbs. reportedly sold for $376. In central Alberta, Simmental-blended steers carrying 630 lbs. dropped the gavel at $366 and similar-quality heifers averaging 612 lbs. sold for $324.
Northwest of Winnipeg, Charolais-based steers weighing 560 lbs. were last-bid at $401 and similar-quality heifers averaging 507 lbs. silenced the crowd at $358. Northeast of Saskatoon, British-based steers weighing a shade over 500 lbs. set the bar at $405. South of Edmonton, tan steers weighing 467 lbs. drew grasps from the crowd with the last bid surfacing at $452 and a smaller group of mixed heifers weighing 471 lbs. topped out at $344.
Higher prices have pulled more cattle to the market. September placements in Alberta and Saskatchewan were higher than anticipated. Friday’s USDA Cattle on Feed report also had placements up six per cent from 12 months earlier. The feeder market feels vulnerable at the current levels.
— 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.
