Compared to last week, western Canadian yearling and calf markets were quoted steady to $5 higher on average. Strength was noted in southern Alberta. In the Lethbridge area, prices for lighter flesh replacements were up as much as $10 from seven days earlier.
Larger supplies of backgrounded cattle are coming on the market at this time of year. However, finishing feedlots were extremely aggressive on quality replacements. The steer-heifer spread appeared to narrow this past week, which isn’t uncommon when prices are near historical highs. The feeder market has been trending higher and waiting isn’t an option. Feedlot operators who were holding out for a price correction finally threw in the towel and sent “just get ’em” type orders to their local buyers.
Read Also
U.S. livestock: Feeder cattle extend rally to new highs
Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
In the Lethbridge area, a larger group of lighter-flesh red steers weighing 875 lbs. were quoted at $264. In central Alberta, mixed medium-frame steers carrying thicker butter levels averaging 860 lbs. were valued at $253. Northwest of Winnipeg, Charolais-based steers scaled at 800 lbs. with medium to lower flesh levels sold for $267 while similar-quality and -weight heifers were quoted at $237.
In southern Alberta, light-flesh Angus steers weighing 750 lbs. sold for $287 while a small group of larger-frame black Angus-based heifers averaging 750 lbs. were quoted at $271. In central Alberta, a larger group of mixed steers with lower flesh weighing just over 700 lbs. silenced the crowd at $300. Mixed heifers with heavier flesh weighing 710 lbs. dropped the gavel at $245.
East of Saskatoon, larger-frame black Limousin mixed steers weighing 620 lbs. charted course at $333 and larger Charolais heifers weighing a shade over 600 lbs. reached $287. In Lloydminster, tan steers scaling a shade under 500 lbs. dropped the gavel at $270 and black steers weighing 458 lbs. were valued at $383. It’s only a matter of time before 500-lb. steers trade for $400.
Alberta packers were buying fed cattle on a dressed basis at an average price of $348/cwt delivered, up $6/cwt from last week. Using a 60 per cent grading, live prices would equate to $209/cwt delivered, up $4/cwt from seven days earlier. Fed cattle basis levels are slowly improving as feedlots become more current with production. The average western Canadian steer carcass weight for the week ending March 11 was 918 lbs., up only one pound from last year.
— 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.
