For the week ending August 9, Western Canadian feeder cattle markets traded $5 to $10 higher on average. Many weight categories notched fresh record highs. Ontario demand was evident across western Canada for calves and yearlings.
Finishing feedlots in Southern Alberta were trying to secure yearling packages but it’s very competitive. The weaker live cattle futures on Friday may have posed an ominous signal, however feedlot operators basically shrugged at the futures board. Alberta packers were buying fed cattle on a dressed basis in the range of $500-$505/cwt delivered. Fed cattle prices have been hovering around $500 for the last four weeks. Feedlot margins on current pen closeouts remain in positive territory.
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Near Edmonton, mixed steers straight off grass averaging 1,000 pounds traded for $431/cwt fob ranch. The Ponoka market report had mixed steers weighing 975 pounds off pasture selling for $438/cwt and tan mixed grasser heifers averaging 940 pounds settling at $423/cwt.
North of Calgary, larger frame Charolais Simmental cross steers off grass weighing 840 pounds were valued at $480 of ranch. The TEAM auction report had a pen-sized group of 850-pound black heifers on light barley and corn silage diet with full processing data quoted at $428 fob farm south of Calgary.
The Vold auction northern calf and yearling sale reported a larger group of Charolais Simmental cross steers averaging 670 pounds trading for $566/cwt fob ranch just north of Grande Prairie.
Near Drumheller, a pen-sized group of wide-frame, Limousin cross steers averaging 570 pounds broke the psychological $700 level and settled at $701/cwt fob ranch for November delivery on the DLMS auction.
The Vold auction had black Angus Simmental cross heifers averaging 510 pounds selling for $563/cwt fob ranch 100 km north of Fort St John.
The Vermillion Livestock Exchange market report had 420 pound steer calves selling for $750/cwt and 305 pound steers reaching up to $822/cwt.
This is largely a demand driven rally with Canadian restaurant traffic running 25 per cent to 35 per cent above year-ago levels. Despite the weaker economy, restaurant earnings for the second quarter of 2025 were better than expected. Wholesale beef prices are holding value near historical highs but they haven’t risen about the June peak. If demand starts to ease, the cattle market is vulnerable to the downside.
