Compared to last week, western Canadian yearling markets traded $2-$4 on either side of unchanged. Calf markets were steady to $5 higher on average, with stronger buying interest on preconditioned weaned steer calves. Light calves weighing under 500 lbs. appeared to jump $10-$20 in certain regions.
This past week, focus of finishing feedlots switched from yearlings to calves. While there was still strong demand for grass yearlings, major operations were shopping aggressively for larger packages of quality calves. U.S and Ontario buying interest was also noted in the eastern Prairie regions in the lighter weight categories. There is a $22.50 carrying charge between the nearby October feeder cattle futures and the August 2024 contract. This price structure encourages feedlots to secure ownership earlier, rather than later. Despite drier conditions and poor pasture ratings, cow-calf producers are not selling calves earlier than normal.
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South of Edmonton, medium- to larger-frame red steers straight off pasture weighing 952 lbs. sold for $312 and medium- to larger-frame mixed grass heifers averaging 895 lbs. dropped the gavel at $300. In the Calgary region, medium- to larger-frame black Limousin-based steers coming fresh off the range weighing 848 lbs. reportedly traded for $331. Northwest of Winnipeg, lower-flesh grass steers of Angus genetics weighing a shade over 800 lbs. silenced the crowd at $348. In central Saskatchewan, thin, medium-frame, British-blended heifers off pasture with recorded weight of 844 lbs. were last bid at $304.
In Lloydminster, Simmental-based steers weighing just under 700 lbs. caused the crowd to lose breath as the closing bid came in at $383. Southwest of Calgary, short-weaned, tan mixed steers off pasture averaging 640 lbs. notched the charts at $391. North of Red Deer, black mixed semi-weaned steers with full processing records weighing 520 lbs. set the bar at $412 and tan heifers weighing 550 lbs. moved through the ring at $371.
Northwest of Winnipeg, a small group of red and black bawling steers weighing 450 lbs. supposedly sold for $482. In Prince Albert, the market report had exotic featherlight steers averaging 300 lbs. with a sale price of $533.
Alberta packers were buying fed cattle on a dressed basis at $390/cwt, unchanged from last week. Live prices were quoted at $230-$231/cwt f.o.b. the feedlot in southern Alberta. For April 2024, Alberta live cattle prices are projected to reach up to $260. We’re forecasting U.S. 2024 third-quarter beef production to be estimated at 6.25 billion lbs., down 400 million from the third quarter of 2023. This is elevating prices for lighter calves.
— 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.
