The western Canadian feeder cattle market is in price discovery mode. There was a light test of yearlings and calves this past week, with prices setting fresh 52-week highs. New-crop supplies of grass cattle are coming on the market from drier pockets of Alberta. At the same time, regular feedlot backgrounded replacements are trading at a solid $8 discount to light-flesh grass cattle of similar weight. The market is hard to define as robust demand has resulted in a variable price structure.
Whether cattle are out of backgrounding lots or off grass, buyers are aggressively chasing the market higher. Ranchers in the wetter regions of Western Canada are being offered favourable contracts for September and October delivery. Pee-wee calves are also in hot demand with larger operations wanting early ownership given the prices for yearlings. Deferred live cattle futures are nearing contract highs and the barley harvest is right around the corner in southern Alberta. There is renewed optimism unlike any we’ve seen in a long time.
Read Also

U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
In northern Alberta, grass steers weighing 1,025 lbs. reportedly sold for $207; steers weighing 925 lbs. were valued at $217. In southern Alberta, light-flesh steers off grass averaging 1,010 lbs. were reported at $220 and larger-frame similar-weight heifers were quoted at $208. In the Lethbridge area, yearling steers off grass averaging 845 lbs. reached up to $231 and similar-weight heifers were quoted at $218. West of Saskatoon, a feedlot was offered 1,010-lb. grass steers for September delivery at $208. Tan steers with medium flesh levels out of the Lethbridge backgrounding lot averaging 1,020 lbs. reportedly traded hands at $208.
Heavier calves off grass were red hot while the market for lighter calves is developing in stages across the Prairies. In central Alberta, feedlot reports had 750-lb. steer calves off grass trading at $250 in Alberta and 825-lb. steer calves off grass reaching $235. Across the Prairie provinces, there was a light test of 500- to 700-pounders. In northwestern Manitoba, a small group of 630-lb. steers were quoted at $237; in east-central Saskatchewan, a handful of 610-lb. mixed steers reached up to $255. North of Calgary, a small package of Angus blended steers averaging 620 lbs. were valued at $260 and similar-quality and -weight heifers reportedly moved at $220.
Alberta packers were buying fed cattle on a dressed basis at $297 delivered; using a 60 per cent grading, this equates to a live price of $179. April 2023 live cattle futures closed Friday at $157.80. If we use an average basis, this would equate back to a southern Alberta live price of $200. The fed cattle market is expected to trend higher while barley prices are projected to trend lower throughout the fall period.
— 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.