Compared to last week, quality yearling packages traded $6-$10/cwt higher. In some cases, prices were up as much as $12/cwt. Calf markets were relatively unchanged although the market was hard to defined due to limited volumes. Pastures are drying up in Saskatchewan and certain area of eastern Alberta. Yearlings from these regions are coming on the market sooner than normal. Demand for these top-quality replacements has been extremely strong. The tighter beef fundamental structure for the spring and summer of 2024, along with weaker cash corn values, has contributed to the exceptional buying interest. Higher quality 1,000-lb. steers were readily trading at the psychological $300/cwt level. The bulk of the volume was composed of thin, very light-flesh yearlings straight off grass. There is a carrying charge between August and November feeder cattle futures which has encouraged larger operations to secure ownership.
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In central Alberta, Angus-based steers with full health data off grass weighing 1,000 lbs. traded for $297. Mixed heifers in the same region averaging 960 lbs. dropped the gavel at $268. Northwest of Saskatoon, medium- to larger-frame mixed steers weighing 930 lbs. off grass sold for $301. South of Edmonton, mixed heifers weighing 950 lbs. off grass notched the board at $272.
North of Calgary, Charolais-based steers off grass with full health records weighing 855 lbs. were last bid at $310. In the same region, Simmental-based heifers weighing 840 lbs. off grass were quoted at $280.
Near Lethbridge, thinner black steers off pasture which ran through the ring at 817 lbs. reportedly sold for $300. A larger group of yearling heifers scaled at 815 lbs. sold f.o.b. the ranch at $298.
In central Alberta, tan mixed larger-frame steers weighing 760 lbs. off grass sold for $327 and mixed heifers with a scale weight of 775 lbs. silenced the crowd at $287. South of Edmonton, larger-frame Angus-based heifers averaging 760 lbs. were reported at $297.
Calf volumes were limited. In the Red Deer region, a couple of Angus-based steers weighing 640 lbs. were valued at $366. A handful of tan heifers just under 500 lbs. were on the market report at $327.
Feeder cattle prices in Nebraska have jumped US$10-$15/cwt over the past couple of weeks. Given the tighter supplies in Western Canada, the market needs to trade at a premium to major markets in the U.S. in an effort to ration demand. Western Canadian feeder prices will move in tandem with markets south of the border.
— 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.
