For the week ending 26, Western Canadian calf markets were up $8-$12/cwt on average compared to seven days earlier. Pee-wee calves were up $20-$25/cwt compared to the prior week. Finishing feedlot operators were active buyers in all weight categories while backgrounders were cleaning up on smaller packages of calves under 550 pounds.
Ontario demand was evident across the Prairies while U.S. interest wasn’t much of a feature. Some larger Alberta feedlots are only 50 to 60 per cent full and these operations are anxious to increase ownership. Western Canadian calves under one year old outside finishing feedlots as of July 1 were 2.820 million head, down 74,300 head from last year. The stronger demand is surfacing on lower supplies which results in a higher price.
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Yearling volumes were limited this past week. Prices for 800 pound plus cattle straight off grass were $3- $6/cwt higher. Larger finishing operations sent “just get’em” orders across the Prairies on quality packages that were available.
Southwest of Edmonton, larger frame Limousin mixed steers off grass weighing 920 pounds traded for $333. Southeast of Edmonton, Simmental blended steers off grass averaging 810 pounds notched the board at $360. In southwest Manitoba, Angus based heifers off grass weighing 930 pounds sold for $306 and their lighter sisters evaluated at 850 pounds supposedly traded for $319.
North of Saskatoon, black Angus calves off cows and grass averaging 725 pounds apparently sold for $375. In central Alberta, larger frame, red Angus 700-pound calves of cows grass and hay sold for $385 while mixed heifers around 720 pounds off cows, grass and feed notched the board at $352.
In southwest Manitoba, larger frame mixed steers off cows and grass weighing 640 pounds traded for $388 and Charolais heifers gauged at 640 pounds were quoted at $361. In central Saskatchewan, Charolais based steers off cows and grass weighing 615 pounds were last bid at $405. North of Saskatoon, black heifers weighing 609 pounds were quoted at $365.
At the Ponoka sale, Charolais based steers off cows grass and feedstuffs weighing 550 pounds reportedly moved at $446 and similar quality heifers averaging 514 pounds reached $410. In east-central Alberta, a larger package of Charolais based steers off their mothers weighing 500 pounds reached $473. In southwest Manitoba, red mixed steers weighing 410 pounds were last bid at $525. A buyer told me in Thorsby, Alberta, 350-pound steers reached up to the psychological $600 level and 360-pound heifers charted course at $500.
When the feeder market is at the initial stages of expansion, theoretically, it’s an inverted supply curve. Higher prices result in lower supplies on the market as heifers are held back for breeding. This causes the market to move to extreme highs. At the Lloydminster sale, 650-pound heifers for feedlot placement were $360 and similar weight heifers for breeding (herd expansion) reached $400.
— 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.
