Compared to last week, western Canadian yearlings (900 lbs. and over) appeared to trade $6-$8 lower on average; yearlings weighing 800-900 lbs. off grass were unchanged. Backgrounded yearlings were also $6-$8 lower. Mid-weight calves were unchanged but calves under 600 lbs. were $3 to as much as $10 lower in some cases.
Feedlot operators pulled in the reins on feeder cattle purchases last week, given the uncertainty in deferred fed cattle prices and overall beef demand. Alberta packers were buying fed cattle on a dressed basis in the range of $298-$300/cwt delivered, down from last week’s average price of $302/cwt delivered. More importantly, certain packers in Canada and the U.S. were not showing bids for January through April delivery. The cost per pound gain continues to percolate higher. Lethbridge barley was trading in the range of $425-$450/tonne delivered last week, up from $420-$440 seven days earlier. The feeder market has incorporated a risk discount. The weather looks favourable to bring in calves over the next week but truck availability remains tight. Many ranchers are also delaying sales in regions where forage is readily available. More and more producers are weaning and pre-conditioning calves to extract extra value.
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South of Edmonton, mixed steers fresh off grass averaging a hair under 900 lbs. with full health data dropped the gavel at $230. In central Alberta, medium- to larger-frame black steers on light grain ration from backgrounding lot weighing 905 lbs. sold for $210. Near Lethbridge, red white-face steers weighing 840 lbs. off pasture were valued at $240 and Charolais-blended heifers fresh off grass weighing 860 lbs. were quoted at $216. In east-central Saskatchewan, a small group of Charolais steers ran through the ring at 825 lbs. and charted the board at $245. Northwest of Winnipeg, black heifers coming straight off pasture averaging 875 lbs. silenced the crowd at $215.
In central Alberta, semi-weaned Angus-blended steers averaging 640 lbs. with full health records were valued at $256 and similar-quality heifers weighing 520 lbs. were quoted at $242.
Northwest of Winnipeg, Charolais steers weighing 662 lbs. notched the screen at $264 and similar-quality steers running at 575 lbs. were valued at $282. In southeastern Saskatchewan, mixed steers weighing 425 lbs. reached up to $302. Southeast of Calgary, mixed steers weighing 482 lbs. charted course at $287. North of Red Deer, Hereford-blended steers off their mothers coming in the door at 530 lbs. stopped bids at $254 and similar-quality heifers weighing 580 lbs. sold for $215.
U.S. feeder demand is rather sluggish. Canadian feeder cattle exports have been running 96 per cent above year-ago levels; however, movement south of the border will likely slow down in the final quarter of 2022 due to the drought in the U.S. southern Plains.
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