Compared to last week, western Canadian yearling markets traded $2-$4 higher on average. Heavier calves over 700 lbs. continued to climb, notching gains of $2-$4. Calves weighing 500-700 lbs. were $4 to as much as $7 higher. This past week, there was a light test of calves under 500 lbs.. Prices were near historical highs for pee-wee bawlers under 400 lbs. The Canadian dollar came under pressure early in the week, which contributed to the firmer tone. Buyers responded immediately by increasing bids for yearlings and heavier calves. Larger strings of quality genetic yearling packages were $3-$5 above average prices. Feedlot operators were willing to pay up for efficient gainers. There appear to be fewer yearlings coming on the market in Manitoba and Saskatchewan this year due to last year’s drought. Feedlot operators continue to assess the market conditions and buying interest appears to have increased over the past couple weeks.
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In central Alberta, larger-frame Simmental-based steers with full health data fresh off grass weighing 932 lbs. reportedly sold for $235; similar-quality heifers with full records averaging 920 lbs. were quoted at $209. In southern Alberta, larger-frame Charolais-based steers off grass weighing 830 lbs. were valued at $238 and similar-quality heifers averaging 808 lbs. charted the board at $216. In central Saskatchewan, larger-frame black mixed steers weighing 810 lbs. sold for $230 and larger-frame mixed heifers weighing a shade over 800 lbs. dropped the gavel at $216. North of Red Deer, a small group of red mixed steers weighing 1,015 lbs. sold for $210.
In central Alberta, tan steers off grass averaging 715 lbs. sold for $247 and mixed heifers weighing 705 lbs. were quoted at $222. Southeast of Saskatoon, mixed steers weighing 615 lbs. were quoted at $272 and mixed heifers averaging a shade over 600 lbs. were quoted at $241. In southern Alberta, a larger group of Angus-based steers weighing 500 lbs. were valued at $282 landed in the feedlot.
Calves under 500 lbs. were quite variable as the market for these light weights remains in price discovery mode. In the Lethbridge area, steer calves of various genetics weighing 300-400 lbs. were quoted from $295 to as high as $370; heifers in the 300- to 400-lb. category were quoted from $270 to $320.
Western Canadian prices are reflecting at a $5-$8 premium over values south of the border. The barley harvest occurs 30 days before the main corn harvest. Alberta feedlots have a competitive advantage in the short term. The May 2023 feeder cattle futures continue to reflect a $10 premium over the September contract. This price structure in the feeder futures is lifting prices for lighter-weight 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.
