For the week ending September 28, Western Canadian calf markets were quoted steady to $5 higher compared to seven days earlier. Yearlings off grass were relatively unchanged from the prior week while backgrounded replacements traded $3-$5 on either side of unchanged. As a rule of thumb, yearlings off grass trade at a $20 premium over backgrounded cattle of similar weight.
The focus is slowly turning from yearlings to calves. Finishing feedlot operators were more aggressive larger groups of pre-conditioned calves over 650 pounds. The quality of calves is always highest early in the season while fleshier types come on the market later in October and November. Demand from backgrounding operators has also increased now that the grain harvest has wrapped up. There appeared to be stronger buying interest for small groups of light weight bawlers. The weather has been excellent for transportation and buyers are taking advantage of current conditions.
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In Manitoba, Angus blended steers off grass averaging 950 pounds sold for $320 while Charolais based steers off pasture weighing 840 pounds dropped the gavel at $353. In central Alberta, a larger group of mixed steers measured at 848 pounds on light grain and silage diet with full health data sold for $329. South of Edmonton, a smaller package of mixed heifers off pasture weighing 855 pounds supposedly traded for $322.
In east-central Alberta, a handful of Simmental blended yearling steers averaging 760 pounds traded for $379. South of Edmonton, a larger package of Charolais semi-weaned steer calves weighing just over 700 pounds apparently sold for $393. In the same region, a small group of Charolais yearling heifers weighing 740 pounds supposedly ran through the ring at $331 while Charolais heifer short-weaned calves around 700 pounds rang the bell at $340.
Near Lethbridge, a smaller group of red white face steers off grass on the card at 684 pounds traded for $352. In southern Manitoba, black mixed steers off their mothers and pasture weighing 640 pounds were quoted at $381 and a handful of black heifers averaging 650 pounds apparently sold for $322. In central Alberta, Angus based steers off their mothers and pastures around 630 pounds supposedly notched the charts at $389. The calf market was fairly even across the Prairies.
North of Saskatoon, a larger package of black steers off their mothers weighing 553 pounds traded for $411 and tan heifers averaging just over 500 pounds reportedly traded for $378. At the Lloydminster sale, British based bawling steers around 400 pounds reached up to $468.
Strength in the deferred live cattle futures has spilt over into the feeder complex. Alberta and Saskatchewan placements in the lighter weight categories are down from year-ago levels which is resulting in stronger Alberta fed cattle basis levels for next spring. These are the main factors influencing the calf markets in Western Canada.
— 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.
