Compared to last week, Western Canadian yearling or backgrounded steers prices were quoted $5 to $8 higher; yearling or backgrounded heifers were unchanged to $4 higher. Calves were trading $4 to as much as $10 higher.
The October 2024 feeder cattle futures are trading at a $18 premium over the nearby March contract. This tells the feedlot operator to own lighter weight feeder cattle sooner rather than later which is providing a boost to calves under 650 pounds. Alberta weather has been optimal for feeding and processing which has also contributed to the stronger buying interest for calves.
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Finally, the bulk of Alberta and Saskatchewan have received above normal precipitation over the past 30 days, which has enhanced demand for grassers. Feedlot margins have struggled through January and February but there is considerable optimism for the fed cattle market during the summer and fall.
In Central Alberta, larger frame, lower flesh Simmental blended steers weighing just over 900 pounds on light grain and silage diet with full processing data sold for $319. In the same region, medium frame, red heifers carrying light butter with full health records around 850 pounds dropped the gavel at $299.
South of Calgary, Limousin blended steers on thinner frames scaled at 805 pounds were last bid at $342. Northwest of Winnipeg, black Angus based steers with limited fleshier coats averaging 810 pounds supposedly traded for $335. North of Brandon, Charolais based lighter flesh heifers weighing 750 pounds apparently notched the board at $319.
Southeast of Saskatoon, longer-term weaned, tan steer calves averaging 715 pounds reportedly sold for $378. Near Lethbridge, black weaned steers on the card at 692 pounds traded for $405. South of Edmonton, black, weaned mixed steer calves weighing 605 pounds supposedly traded for $415. In Southern Manitoba, Charolais heifers around 625 pounds were last bid at $382.
One market report from Manitoba had Charolais steers averaging just under 600 pounds trading for $438. In Central Saskatchewan, black mixed steers with short weaning period around 525 pounds were valued at $458. South of Edmonton, black heifers weighing 540 pounds apparently sold for $393. Near Lethbridge, black steers averaging 522 pounds were valued at $490.
Statistics Canada released their January 1 Livestock Inventory Report on Friday. Western Canadian calves under one year old on cow calf and backgrounding operations totaled 2.389 million head, down 47,200 head from the January 1, 2023. On February 28, the USDA will release their survey of feeder cattle outside finishing feedlots as of January 1. We’re expecting a year-over-year decline of 1.167 million head. The industry is bracing for significant heifer retention on both sides of the border which will tighten the squeeze on supplies.
— 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.
