Compared to last week, western Canadian yearling markets traded steady to $4 lower. The yearling quality continues to fade as thicker flesh levels are starting to appear. Steer calves were down $4-$8 on average while heifer calves were down $15 to as much as $20 in some cases.
From a seasonal perspective, the calf market tends to soften in October and this year is no exception. Ontario buying interest was stronger last week and this caused certain quality packages to divorce from the overall lower trend. For example, eastern buyers were more aggressive for larger-frame cattle with Limousin genetics. Finishing feedlots were the main buyers on larger calves. Backgrounding operators are starting to step forward for various weight categories. The feeder market has lost upward momentum with the weaker live and feeder cattle futures. It appears the buying interest is easing at the higher levels.
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West of Winnipeg, Angus-blended steers off grass weighing 905 lbs. reportedly sold for $312 and similar-quality heifers averaging 808 pounds were said to have traded for $302. In central Alberta, larger-frame Simmental cross steers with full health data coming straight off pasture with a scale weight of 855 lbs. silenced the crowd at $328. North of Calgary, medium- to larger-frame mixed heifers coming off a ranch diet carrying 835 lbs. apparently sold for $284. In southern Alberta, British-based yearling steers weighing 775 lbs. were valued at $336.
At Ste. Rose Auction Mart in Manitoba, the market report had red and black steers averaging 725 lbs. on the sheet at $367. In central Saskatchewan, a smaller group of Simmental short-weaned steer calves averaging 670 lbs. supposedly traded for $359. In central Alberta, red steers with full processing records coming off cows and grass diet on the board at 693 lbs. traded for $354. In the same region, Simmental mixed heifers on the card at 635 lbs. were valued at $317.
West of Winnipeg, black mixed steers weighing 520 lbs. dropped notched the charts at $420. South of Edmonton, mixed steers weighing 515 lbs. were quoted at $385 and Charolais-based heifers weighing 510 lbs. allegedly sold for $338. At Ste. Rose, the market report had Charolais steers weighing 468 lbs. valued at $445. In Lloydminster, black steers weighing 400 lbs reached up to $493.
The August 2024 feeder cattle futures are trading at a US$24 premium to the nearby October 2023 contract. It appears the feeder market is anticipating significant heifer retention in the latter half of 2024. This is driving the market for calves under 500 lbs.
— 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.
