Western Canadian yearling prices were relatively unchanged compared to seven days earlier, for the week ending March 9.
Western Canadian feedlots are carrying sufficient numbers for the time being and feeding margins remain deep in red ink on unhedged cattle. Secondly, carcass weights are sharply above year-ago levels and Alberta finishing lots are backed up with market-ready supplies.
Buyers have pulled in the reigns on backgrounded cattle for the time being. The futures market looks a bit sluggish in the short-term although fed prices are expected to reach back up to historical highs in the third quarter.
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Calves were trading $3/cwt to $5/cwt higher compared to a week earlier. The replacement heifer market has surged over the past couple weeks which has bolstered overall calf complex. There was once again strong demand surfacing for grassers. Secondly, finishing feedlots are once again bracing for a year-over-year decline in yearling supplies this August. Larger players are aggressively securing ownership on lighter weight calves and pee-wee quality.
North of Brandon, Simmental based steers weighing 940 pounds on grain backgrounding diet carrying medium butter reportedly dropped the gavel at $315. In Central Alberta, Charolais based heifers weaned in late October coming off light grain and silage diet with full health records averaging 850 pounds sold for $304.
South of Edmonton, mixed steers with full 90 day weaning period on light barley and silage, controlled gain diet, with full processing data averaging 875 pounds traded for $319. Near Saskatoon, Angus blended steers with lighter butter on forage diet weighing 818 pounds supposedly notched the board at $336.
In Central Saskatchewan, British blended steers with variable flesh clocked at 750 pounds apparently traded for $353. In the Calgary region, black Limousin based steers recorded at 700 pounds reached up to $386 and similar quality and weight heifers touched $330.
In Southern Manitoba, black short-weaned steers weighing 610 pounds traded for $398 while north of Calgary, tan steers averaging 615 pounds reportedly sold for $429. In Central Alberta, black mixed, weaned heifers on hay and forage diet weighing 620 pounds were last bid at $380.
In Southern Alberta, Charolais based steers weighing just over 500 pounds traded for $465 and black heifers around 510 pounds were quoted at $410.
Good quality bred cows and bred heifers are in the range of $3500-$4000. Herd building heifers could be up another $1000 over the next couple of months as the market functions to encourage expansion.
— 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.
