For the week ending Oct. 14, western Canadian yearling prices were steady to $4 higher compared to a week earlier. Calves in the range of 500 to 800 pounds traded $4-$6 lower in Alberta. However, in eastern Saskatchewan and in Manitoba, calves in this weight category were relatively unchanged compared to the previous week. In all three Prairie provinces, calves under 500 lbs. held value at higher levels.
Demand from Ontario set the price structure in the eastern Prairie regions. Larger volumes were on offer in Alberta and this was the main reason for the price slippage on calves. Secondly, it appears fed cattle basis levels in the deferred positions have weakened and feeding margins are hovering just below break-even for the spring of 2024. The quality of calves was quite variable last week, which contributed to the softer tone in Alberta. Unweaned bawling calves traded at a discount to quality, processed, weaned packages. Buyers were quick to call out plainer types within larger groups. At these prices, buyers are not absorbing calves that will not perform in the feedyard.
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In central Alberta, a large group of mixed heifers with full processing data coming straight off pasture averaging 882 lbs. sold for $291. In the same region, mixed medium- to larger-frame steers on grass diet weighing just over 900 lbs. dropped the gavel at $301. Northwest of Winnipeg, red steers weighing 905 lbs. sold for $310 and Angus-based heifers on the card at 913 lbs. reportedly traded for $285. At the Ponoka sale, mixed steers straight off grass with full health data carrying 875 lbs. were valued at $320.
At the Lloydminster sale, Simmental steers with a scale weight of 794 lbs. were last bid at $344 and similar-quality and -genetics heifers averaging 778 lbs. were valued at $306. In southern Manitoba, weaned steer calves with Charolais characteristics weighing 710 lbs. apparently notched the board at $365.
In central Saskatchewan, Charolais-based steers coming off cows and grass diet on the card at 632 pounds reportedly set the bar at $373. At Ste. Rose du Lac, Man., red steers weighing 616 lbs. were quoted at $384. In the Calgary region, mixed semi-weaned steers with some bawler types weighing 610 lbs. were said to have sold at $355.
South of Edmonton, mixed semi-weaned steers weighing 555 lbs. traded for $375. In the same area, tan heifers coming off their mothers on the card at 525 lbs. were purchased for $349. In central Saskatchewan, Angus-blended steers weighing 510 lbs. reportedly traded for $414 and a larger group of unweaned 500-lb. heifers apparently traded for $350. In Manitoba, Angus-based steers averaging 410 lbs. supposedly sold for $490.
In Ontario, corn is trading at $232/tonne while imported U.S. corn in southern Alberta was quoted at $315/tonne delivered. If the Ontario buyer was absent, the calf market faltered.
— 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.
