For the week ending March 7, there were two distinct price structures. On Monday, March 3, feeder cattle prices were relatively unchanged from the previous week. However, once the U.S. implemented tariffs for Canadian cattle on March 4 , feeder cattle markets dropped by $10-$15/cwt on average.
Prices remained subdued for the remainder of the week even after tariffs on many Canadian goods were paused. Many auction markets did not hold sales. Locations that did have action received lower volumes. Many cow-calf producers and backgrounders were selling stragglers or off grade feeders. This also contributed to the difficulty defining the market structure.
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In central Alberta, on Wednesday, March 5, Simmental based steers weighing just over 900 pounds on backgrounding ration with full health records traded for $352. This was down from $370 two weeks earlier. Simental Angus cross heifers weighing 860 pounds on backgrounding ration apparently sold for $330, this was down a solid $15 from values in the latter half of February.
On March 3, the Prince Albert sale had black medium to lower flesh steers evaluated at 806 pounds selling for $394. North of Calgary, black mixed larger frame steers weighing 815 pounds supposedly traded for $368 on March 4.
There were certain instances where the market showed limited slippage. At the Ponoka sale on March 5, a small package of Charolais blended steers averaging 810 pounds moved through the ring at $387. There were also packages at the Yorkton sale on March 5 that traded very similar prices to week-ago levels.
At the Westlock sale on March 6, a handful of red Angus steers cross steers weighing 778 pounds traded for $384. This was down $10-$15/cwt from seven days earlier.
At the Killarney sale on March 3, Charolais based steer averaging 599 pounds were quoted at $482. On March 6, larger frame Simmental based steer weighing 600 pounds traded at $465 in Central Alberta. At the Prince Albert sale on March 3, black steers averaging 493 pounds were last bid at $557. At the Ponoka sale on March 5, a handful higher quality mixed steers averaging 500 pounds sold for $518.
The implementation of U.S. tariffs from March 4 through March 6 made Canadian feedlot operators realize that the tariffs are real, not just a threat. There will be a defensive tone moving forward. If U.S. tariffs on Canadian cattle are implemented again in April, feedlot operators will wait until the packing plants show price indications in the deferred positions. This will determine the value of replacement cattle in Western Canada.
