Compared to last week, yearlings straight off grass sold $3-$5 higher on average. In certain cases, larger groups of higher quality genetics traded $8-$12 above week-ago levels. Auction markets had larger volumes this past week and there was strong demand across all weight categories.
It’s that time of year when major operations are stepping forward more aggressively. Yearlings that have been grounded on light grain and silage were trading anywhere from $15 to as much as $25 discount to those straight off grass. The market for grass yearlings has been bid up high enough that margins barely cover feed costs based on deferred fed cattle prices. This may be one signal that prices are rationing demand at the current levels.
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In central Alberta, medium- to larger-frame mixed steers straight off grass with full health records averaging a shade over 1,000 lbs. sold for $299. North of Calgary, lower-flesh backgrounded mixed steers on light grain and silage ration averaging 990 lbs. were last bid at $285. South of Edmonton, Simmental-based steers averaging 900 lbs. straight off grass were quoted at $323. In the same region, tan heifers off grass weighing 905 lbs. were valued at $298. In central Saskatchewan, black Angus-based steers off grass averaging 875 lbs. notched the charts at $320. In southern Alberta, a larger group of Angus heifers weighing 836 lbs. traded at $303.
Southeast of Calgary, Limousin-based steers weighing 725 lbs. dropped the gavel at $358 and similar-quality heifers weighing just over 700 lbs. moved the yardstick at $325. South of Edmonton, a handful of unweaned mixed steers weighing 630 lbs. silenced the crowd at $355. In central Saskatchewan, black mixed weaned steers with a scale weight of 650 lbs. were last bid at $363. Southeast of Saskatoon, mixed weaned heifers with exotic features averaging 610 lbs. were quoted at $320.
In central Alberta, a handful of tan weaned steers with an average weight of 515 lbs. were purchased for $390. Near Lloydminster, a small group of red and black heifers averaging 417 lbs. were quoted at $385.
The calf market is becoming more defined as volumes increase. Statistics Canada will release its July 1 cattle inventory report later in August and this has potential to move the market if calf numbers are down significantly from last year. This may be spurring on demand in the short term.
— 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.
