Compared to last week, western Canadian yearling prices were unchanged to $4 higher. Heavier calves notched a week-over-week gain of $2-$4. Mid-weight and lighter calves traded steady to $5 lower in Alberta but $4-$5 on either side of unchanged in Saskatchewan and Manitoba. Yearling numbers were limited and buyers paid up for quality packages while late-blooming stragglers in smaller groups were heavily discounted. Alberta packers were showing strong fed cattle basis levels for the second quarter of 2023 which resulted in the firmer tone for yearlings and heavier calves. Once again, finishing lots were aggressive on larger packages of quality pre-conditioned long weaned calves. Backgrounding operators were picking away at smaller groups of various quality. Weather conditions were quite variable across the Prairies and may have influenced buying interest, especially in southern Alberta.
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Northwest of Winnipeg, a smaller group of larger-frame red mixed yearling steers weighing a shade over 900 lbs. dropped the gavel at $230. Southeast of Saskatoon, larger-frame Simmental-based yearling steers weighing 820 lbs. reached up to $240. South of Edmonton, mixed steers averaging 890 lbs. silenced the crowd at $225 while a small group of mixed heifers that were scaled at 815 lbs. traded for $201.
In central Saskatchewan, black weaned steer calves weighing 710 lbs. were bid up to $248 and similar-quality and -weight heifers were quoted at $224. In central Alberta, a small group of Limousin-based steers weighing 610 lbs. with full health records on grass and small grain diet were recorded at $264. In the same region, Angus-based vaccinated heifers scaled at 610 lbs. coming straight off their mothers charted course at $214. In Manitoba, a larger group of Charolais-based steers weighing 585 lbs. sold for $290.
In southern Alberta, a larger group of Hereford-blended steers straight off their mothers weighing 530 lbs. were valued at $270 and Angus-based bawling heifers averaging 555 lbs. were quoted at $225. In Manitoba, black steers just under 500 lbs. reached up to $311; similar-quality heifers weighing 470 lbs. were reported at $239.
Feeder steers weighing 500-600 lbs. traded in the range of $270-$290 in central Alberta this week, up from $200-$225 last year. Trade estimates have feeder cattle outside finishing feedlots as of Oct. 1 in Western Canada down about 300,000 head from Oct. 1, 2021. Cow-calf producers are holding back on more heifers this fall as the market functions to encourage expansion. Imports of feeder cattle from the U.S. (mostly Holstein feeders) are down sharply from year-ago levels. All these factors are contributing to stronger demand.
— 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.
