For the week ending October 19, Western Canadian yearling markets traded $3 to $5 on either side of unchanged compared to seven days earlier. Calf prices were $5 to as much as $10 higher. Strength in the deferred live cattle futures along with the weaker Canadian dollar has resulted in positive margins on incoming calves. Therefore, the calf market has developed a floor price.
Secondly, Western Canada is a net importer of feeder cattle. The domestic market is trading at a premium to U.S. values in an effort to curb exports. Feeder cattle futures are up nearly US$20/cwt (C$27.64) from the September low. Finally, the price of U.S. corn delivered Lethbridge has dropped about $10/tonne resulting in lower cost per pound gain. This has allowed feedlot operators to be more aggressive in securing calf ownership.
Read Also

U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
South of Edmonton, larger frame mixed steers straight off grass with full health records averaging 970 pounds dropped the gavel at $320. At the same sale, larger frame, thin, black mixed heifers weighing 975 pounds were last bid at $307. Northwest of Winnipeg, medium to larger frame Simmental based steers off grass weighing 850 pounds sold for $349 and similar genetic heifers straight off pasture evaluated at 820 pounds moved through the ring at $317. In central Alberta, a smaller package of tan steers off grass weighing 760 pounds $360 and similar quality and genetic heifers gauged at 740 pounds sold for $330.
Feedlots were paying minor premiums on low stress weaned calves. In central Saskatchewan, short-weaned, larger frame, 700-pound Simmental based steers on the card at 700 pounds rang the bell $386. North of Saskatoon, semi-weaned Angus based steers weighing 650 pounds sold for $392. Northwest of Winnipeg, short-weaned, Simmental cross steers weighing 650 pounds reached up to $420.
At the Lloydminster sale, Charolais based steers around 600 pounds were on the market report at $414. In central Alberta, red Simmental Charolais blended heifers gauged at 628 pounds coming of cows and swath grazing with full processing data were purchased for $360.
At the Killarney, Manitoba sale, a handful of red steers off their mothers weighing 554 pounds sold for $422. In central Alberta, Angus based steers off cows and grass with full processing records and age verified evaluated at 508 pounds dropped the gavel at $458. Southeast of Calgary, black Limousin wide frame heifers with full health records coming off their mothers and grass diet touched the psychological $400 level.
U.S. corn production is expected to finish near 386 million tonnes, down from the 2023 record of 390 million tonnes. U.S. farmers will sell about 50 per cent of the crop from September 1 through December 1. This recent upward leg in the feeder market is largely due to corn weakness.
— 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.