For the week ending July 20, Western Canadian yearlings traded $8-$15 above prices from seven days earlier. Values for larger groups of quality calves were up $8 to $10 from a week earlier while run of the mill smaller packages were relatively unchanged.
Yearlings are hot; there is no doubt about it. Larger finishing operations are anxious to secure ownership of quality replacements. Given the smaller calf crop in 2023, yearling numbers could be down about 80,000 to 100,000 head from year-ago levels and that’s resulted in fierce bidding. There is a high risk tolerance in the crowd as these cattle will have a difficult time penciling profitably.
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Over the past 18 days, most of Western Canada has received scorching temperatures and limited precipitation. There’s no change in the seven-day forecast. Producers holding yearlings are conserving feed and may sell a bit earlier than normal as pastures deteriorate.
In Southern Alberta, Angus blended steers off grass and around 935 pounds were valued at $343.
In Central Alberta, red Simmental heifers averaging 907 pounds off grass, with full processing data sold for $320. Southeast of Calgary, a smaller package of mixed steers weighing just over 900 pounds supposedly traded for $332.
South of Calgary, a smaller package of larger frame Charolais-based steers averaging 830 pounds off grass supposedly reached up to $372. South of Edmonton, Simmental heifers off grass, averaging 775 pounds, reportedly traded at $353.
Northeast of Calgary, black Limousin larger frame steers off grass, averaging 725 pounds, were valued at $424. Similar quality and genetic heifers off grass, measured at 715 pounds, were quoted at $388. In Central Saskatchewan, black mixed heifers in the backgrounding lot, weighing 720 pounds, with full processing data were quoted at $355 fob the farm.
In Central Alberta, larger frame Simmental mixed steers scaled at 625 pounds apparently traded for $452. In the same region, tan mixed heifers averaging 630 pounds. North of Calgary, a small package of 540 pound mixed steers were valued at $480. On the video auction, there was a larger group of Charolais steers averaging 560 pounds for late November delivery that sold for $495.
The past four cattle Alberta and Saskatchewan Cattle On Feed Reports have shown a year-over-year decline in placements under 700 pounds. There are ideas that market-ready fed cattle supplies in Alberta will be down sharply from year-ago levels in November and December. This sentiment has enhanced buying interest for yearlings that will be finished in the final quarter of 2024. The Alberta fed market may ration demand in the late fall period by trading above U.S. fed cattle prices.
