For the week ending June 22, Western Canadian yearling markets were unchanged to as much as $10 higher compared seven days earlier. Calf prices were quoted $3 lower to $5 higher compared to the previous week.
Volumes were rather light which made the market hard to define. The variability in calf quality contributed to the difficult price discovery. Quality packages of yearlings were well bid while fleshier types experienced minor discounts.
Alberta feedlot operators were aggressive on local yearlings over 750 pounds. Alberta buying interest appeared to fade moving east into Saskatchewan and Manitoba where prices were relatively flat from week-ago levels. Feedlots in Eastern Canada are backed up with market-ready fed cattle which has resulted in limited demand for feeder cattle from Western Canada.
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East of Edmonton, a smaller package of medium to larger frame, lighter flesh, mixed steers weighing 916 pounds, on rolled oats and hay diet, with full processing data sold for $316. South of Edmonton, larger frame Charolais heifers on light grain and silage diet, averaging 940 pounds, with full health records dropped the gavel at $309. North of Calgary, wide frame, thin, black Limousin blended steers with scale weight of 806 pounds, on light grain and silage diet were last bid at $362. Northwest of Winnipeg, Charolais mixed heifers with a mean weight of 840 pounds traded for $330.
In Central Saskatchewan, Charolais based steers on grass diet based at 700 pounds were valued at $400. In Central Alberta, Simmental mixed red heifers on hay diet with full health data weighing 730 pounds notched the board at $358.
East of Edmonton, black mixed weaned heifers on the card at 600 pounds, coming off grass, with full processing data apparently sold for $418. In Central Saskatchewan, a small group of weaned, larger frame steers on the card at 610 pounds reportedly sold for $435. In Central Alberta a handful or mixed, weaned heifers weighing 530 pounds off grass sold for $406. In the same region, a pair of of mixed steers off grass averaging 550 pounds were valued at $445.
Alberta and Saskatchewan heifer placements in the lighter weight categories are down from year-ago levels. Comments from ranchers and order buyers suggest that Western Canadian ranchers are holding back on heifers to expand the herd. This usually results in a narrowing of the steer/heifer spread.
— 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.
