For the week ending October 12, the Western Canadian prices for yearlings off grass and backgrounding operations were relatively unchanged from seven days earlier. The Lethbridge market for calves was up $8-$10 from week-ago levels while calf markets in the non-major feeding regions were up a solid $4-$6 on average.
Stronger interest was noted on heifers in the 600-800 pound category, especially in the Lethbridge region. However, order buyers reported full decks on larger packages of steers and heifers over 700 pounds. The feedlot objective is to finish cattle for the March/April timeframe which has lent strength to mid-weight calves. There is significant open demand for calves; the weather is optimal and feeding margins have improved with the stronger deferred live cattle futures. All these factors are driving the feeder market.
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Northwest of Winnipeg, black steers off grass weighing just under 1,000 pounds traded for $313 and Charolais steers off grass averaging 873 pounds were quoted at $335. In central Alberta, tan heifers straight off grass weighing 924 pounds sold for $314. In the same region, black heifers off pasture around 833 pounds sold for $324.
In southern Manitoba, British blended yearling steers weighing 769 pounds sold for $345. In central Alberta, Angus based steer calves off their mothers and grass around 720 pounds traded for $370. At the Lloydminster sale, tan heifers weighing just over 700 pounds were last bid at $347.
South of Edmonton, Gelbvieh cross Angus steers processed at birth, off cows and creep feed diet weighing 650 pounds, sold for $391. At the same sale, similar genetic and quality heifers averaging 607 pounds were valued at $362. Near Lethbridge, Charolais blended short-weaned steers around 620 pounds apparently traded for $410. South of Calgary, Simmental blended semi-weaned heifers off cows and feed averaging just over 600 pounds supposedly traded for $398.
In southwest Manitoba, Angus based steers weighing 575 pounds sold for $426 and similar genetic steers averaging 500 pounds traded for $443. North of Saskatoon, black heifers weighing 550 pounds reportedly ran through the ring at $363.
Feedlots look for calves with slow weaning periods and this is important for calf calf producers trying hit the top end of the market. Quality genetics will be offset with abrupt weaning. This causes buyers incorporate a risk discount due to higher rates of bovine respiratory disease. Secondly, there is feed gain efficiency drag due to stress or poor rumen development. This can be hard to correct over the long term.
— 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.
